Loading...
HomeMy WebLinkAboutFY 2027 (Department of Public Works) DEPARTMENT OF PUBLIC WORKS FY 2027 BUDGET AND OPERATIONS SYNOPSIS Troy Tanigawa County Engineer 1 1. FY 2026 TO PROPOSED FY 2027 BUDGET COMPARSION Funds: GENERAL FUNDS Department: PUBLIC WORKS FY 2026 FY 2027 $ + / - % + / - Salary and Wages 4,156,621 4,532,986 376,365 9.1% Benefits 2,661,189 2,758,959 97,770 3.7% Utilities 1,627,487 1,627,490 3 0.0% Vehicle/Equip, Lease 173,995 76,798 -97,197 -55.9% Operations 2,721,237 2,752,126 30,889 1.1% 11,340,529 11,748,126 407,830 3.6% 37% 23% 14% 2% 24% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 39% 23% 14% 1% 23% FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 2 Fund: HIGHWAY FUND Department: PUBLIC WORKS FY 2026 FY 2027 $ + / - % + / - Salary and Wages 6,009,774 6,722,018 712,244 11.9% Benefits 4,224,290 4,380,476 156,186 3.7% Utilities 653,013 708,343 55,330 8.5% Vehicle/Equip, Lease 2,531,366 1,579,122 -952,244 -37.6% Operations 5,238,365 5,428,534 190,169 3.6% 18,656,808 18,818,493 161,685 0.9% 32% 23% 3% 14% 28% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 36% 23% 4% 8% 29% FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 3 Fund: G.E. Tax FUND Department: PUBLIC WORKS FY 2026 FY 2027 $ + / - % + / - Salary and Wages 238,051 255,991 17,940 7.5% Benefits 150,525 177,384 26,859 17.8% Utilities 0 0 0 0.0% Vehicle/Equip, Lease 6 6 0 0.0% Operations 36,516,057 36,516,057 0 0.0% 36,904,639 36,949,438 44,799 0.1% 0.7%0.4% 99% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0.7%0.5%0% 99% FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 4 Fund: BEAUTIFICATION FUND Department: PUBLIC WORKS FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 FY 2026 FY 2027 $ + / - % + / - Salary and Wages 0 0 0 0.0% Benefits 0 0 0 0.0% Utilities 0 0 0 0.0% Vehicle/Equip, Lease 0 0 0 0.0% Operations 435,517 435,517 0 0.0% 435,517 435,517 0 0.0% 100% 100% 5 Fund: SOLID WASTE FUND Department: PUBLIC WORKS FY 2026 FY 2027 $ + / - % + / - Salary and Wages 5,446,114 5,803,891 357,777 6.6% Benefits 3,538,363 3,657,823 119,460 3.4% Utilities 116,091 137,141 21,050 18.1% Vehicle/Equip, Lease 2,546,985 4,089,580 1,542,595 60.6% Operations 15,231,959 15,350,380 118,421 0.8% 26,879,512 29,038,815 2,159,303 8.0% 20% 13% 0%10% 57% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 20% 13% 0%14% 53% FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 6 Fund: SEWER FUND Department: PUBLIC WORKS FY 2026 FY 2027 $ + / - % + / - Salary and Wages 3,710,041 3,909,096 199,055 5.4% Benefits 2,345,604 2,395,091 49,487 2.1% Utilities 1,894,000 1,894,000 0 0.0% Vehicle/Equip, Lease 299,502 1,407,002 1,107,500 369.8% Operations 10,179,404 9,876,572 -302,832 -3.0% 18,428,551 19,481,761 1,053,210 5.7% 20% 13% 10% 2% 55% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 20% 12% 10% 7% 51% FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 7 The Department of Public Works (DPW) relies on six (6) primary funding sources to sustain its day-to-day operations. These sources include the General Fund, the General Excise Tax Fund, Highway Fund, Beautification Fund, Solid Waste Fund, and Sewer Fund. The General Excise Tax (GET) Fund is the largest contributor to DPW's proposed FY 2027 Operating Budget at $36,949,438. Of the proposed appropriation, 99% primarily covers costs related to Island Wide Road Resurfacing and other operating costs including training, road maintenance-related services, and materials & supplies. The remaining 1% is allocated to cover salary-related costs. Compared to the prior year, the proposed budget reflects a relatively modest net increase of 0.1%, or $44,799. The Solid Waste Fund is the second largest contributor to the proposed operating budget of $29,038,815. Overall, 33% of proposed appropriations cover Salary and Benefit costs for Division of Solid Waste Management (DSWM) operations, and 14% of the appropriations cover equipment purchases. The remaining 53% is allocated to cover operating costs including contracted services, training, materials & supplies, and repair & maintenance costs. Compared to the prior year, the proposed budget reflects a net increase of 8%, or $2,159,303. The Sewer Fund monies are the third-largest contributor to DPW's proposed operating budget at $19,481,761. Of proposed appropriations, 32% covers Salary and Benefit costs while 7% covers equipment purchases and leases. The remaining 61% covers anticipated costs for contracted services, materials & supplies, training, loan repayments, repair & maintenance costs, utilities, and other necessary operating costs for the Wastewater Division. Compared to the prior year, the proposed budget reflects a net increase of 5.7%, or $1,053,210. The Highway Fund is the fourth-largest contributor to DPW's proposed operating budget at $18,813,117. Overall, 59% of proposed appropriations cover Salary and Benefit costs, and 8% covers equipment repairs and purchases. The remaining 33% covers anticipated costs for contracted services, materials & supplies, training, utilities, and other necessary operating costs for the Roads Division and Auto Repair Shop Operation. Compared to the prior year, the proposed budget reflects a net increase of 0.9%, or $161,685. The General Fund is the fifth-largest contributor to DPW's proposed operating budget at $11,748,126. Overall, 62% of the proposed appropriations cover Salary and Benefit costs for DPW Admin, Fiscal Office, Engineering and Building Divisions, and less than 1% covers equipment purchases/leases. The remaining 37% covers anticipated costs for contracted services, equipment purchases, repair & maintenance, materials & supplies, training, and other necessary operating costs. Compared to the prior year, the proposed budget reflects a net increase of 3.6%, or $407,830. DPW’s sixth funding source, the Beautification Fund at $435,517 supports costs to maintain County roadways including services for removal and disposal of items from illicit dumping, and other special projects for beautification of transportation corridors. Compared to the FY 2026, the proposed FY 2027 budget remains flat. 2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET DPW’s strategy for the FY 2027 Operating Budget was based on the following principles: 1) Ensure adequate manpower capability by funding current positions needed to perform essential functions; 2) Enable operations staff with adequate training and appropriate resources including equipment required for effective and efficient performance of duties and funding for outsourcing services as necessary; 3) 8 Prioritize regulatory compliance and safety; and 4) Repair and Maintain infrastructure for which we are responsible. Items “a” through “e” below represent year-over-year changes in expense categories for all funding sources combined with explanations of the primary variances. a. Salary and Wages: increase of $1,710,757 or 8.8% Salary increases are primarily due to collective bargaining negotiations. There is no new position numbers included within the department’s budget. b. Benefits: increase of $449,762 or 3.5% Increase is in line with collective bargaining increases across the department. c. Utilities: increase of $76,383 or 2% Anticipated increase in utilities is primarily due to the increased Highway Fund allocation for streetlights. d. Vehicle/Equipment: increase of $1,600,654 or 29% Increase in this budget category due to outright purchases for heavy equipment in the proposed FY 2027 Budget that were leased in the FY 2026 budget. e. Operations: increase of $36,647 or 0.05% Anticipate a slight increase in State Revolving Fund loan payments for Wastewater. Items “f” through “l” below is a summary of the operating budget by division along with explanations of the primary changes. General Note: (1) Budget line items for Regular Salaries increased across the board to accommodate the second full year of compensation per the Salary Schedules effective from 7/1/24 for UPW and HGEA members. f. DPW Admin Budget overall increase of $214,144 or 16.3%, and primarily includes: $ 136,653 001-2001-601.01-01 Regular Salaries increase of 18.2% primarily due to the funding of position 1525 that was dollar funded previously, and salary increase per the above General Notes (1) $ 10,454 001-2001-601.05.01 Social Security Contribution increase of 18.2% based proportionately on proposed salary account increase $ 32,797 001-2001-601.05.03 Retirement Contribution increase of 18.2% based proportionately on proposed salary account increase $ 25,000 001-2001-601.365-00 Grant-in-Aid increase of 33% to support the Kaua‘i Soil and Water Conservation District program g. DPW-Fiscal Office Budget increase of $25,807 or 5.2%, and primarily includes: $ 20,572 001-2002-601.01-01 Regular Salaries increase, reference above General Notes (1) $ 4,214 001-2002-601.05-02 Health Fund Contribution increase of 16.3% based on most recent 6-month experience $ 4,937 001-2002-601.05-03 Retirement Contribution increase of 6.9% based proportionately on proposed salary account increase 9 $ 5,999 001-2002-601.62.02 Computer Peripherals replacement computer equipment h. Engineering Division Budget increase of $80,974 or 3%, primarily includes: $ 80,306 001-2011-601.01-01 Regular Salaries increase primarily due to, reference above General Notes (1) and also full funding of positions previously partially funded i. Building Inspection Division Budget overall increase of $173,174 or 4.5%, primarily includes: $ 138,834 001-2021-601.01-01 Regular Salaries increase, reference above General Notes (1) $ 33,320 001-2021-601.05-03 Retirement Contribution increase of 10.6% based proportionately on proposed salary account increase j. Roads Division Budget overall increase of $161,011 or 0.9% primarily includes: $ 712,244 201-2071-624.01-01, 201-2072-624.01-01, 201-2073-624.01-01, 201- 2074-624.01-01, 201-2075-624.01-01, 201-2076-624.01-01, 201-2077- 624.01-01 For Regular Salary increases see General Note (1), above $ 249,999 201-2077-624.43-01, R&M Building increase for Repair Shop roofing replacement $ (897,644) 201-2072-624.88-02, 89-02, 89-05; 201-2073-624.88-02, 89-02, 89-05; 201-2074-624.89-02, 89-05; 201-2075-624.89-02, 89-05; 201-2076- 624.89-01; 201-2077-624.89-05; Equipment, Tractors & Heavy Equip Lease/Purchase decrease is due to the number and type of heavy equipment replacements budgeted for outright purchase in FY 2026 met needs of the Division, thus not repeated in the proposed budget k. Solid Waste Division Budget overall increase of $2,159,303, primarily includes: $ 357,429 208-2031-641.01-01 Regular Salaries increase, see General Note (1), above $ 311,302 208-2031-641.30-00 Other Services Increase, due to anticipated increases in cost of contract services including green waste and used oil recycling, reuse program, etc. $ 1,442,595 208-2032-641.89-02, 89-01, 89-05, 88-01; 208-2033-641.89.02, 208- 2031-641.89-01 Tractors & Heavy Equip – overall increase primarily due to the number and type of heavy equipment replacements in the refuse collection operation. 2 replacement refuse collection trucks are fully funded in FY 2027. l. Wastewater Division Budget overall increase of $1,003,182, primarily includes: $ 199,011 502-2061-642.01-01 Regular Salaries increase primarily per the General Note (1), above $ (248,500) 502-2061-642.43-02 R&M Equipment decrease because unanticipated savings allowed for additional equipment R&M in current year as well as decisions to replace old equipment thus lowering anticipated need for equipment R&M next fiscal year $ 1,003,182 502-2061-624.89-01 Equipment increase due to needs for additional and replacement equipment. 10 3. OPERATIONAL CHALLENGES DEPARTMENT VACANCIES / RECRUITMENT / RETENTION The DPW continues to confront operational challenges in recruiting and retaining personnel, however there was some improvement in hiring technical professionals such as personnel for the Engineering Division. Despite continuous recruitment and expanding our online presence, the DPW has continued to see a low pool of candidates for engineering, wastewater plant operators, and automotive heavy vehicle mechanic positions. While there has been a marginal increase in recent hiring, our staffing remained below desired levels in the above-mentioned areas thereby posing a significant hindrance to accomplishing related goals and objectives. It has been a challenge for the County to match compensation packages for comparable positions in the private sector. The Department has worked with the HR Department to create training-level positions to create a pathway that trains-up employees to eventually qualify and become candidates for higher level positions (mechanics, building plan reviewers, wastewater plant operators) that are necessary to meet operational demands. The HR Department has also recently helped the department successfully hire and retain engineers by developing creative compensation packages to lower the disparity provided by private sector compensation packages. LIMITATIONS ON EFFECTIVE PREVENTION OF SICK LEAVE ABUSE The Solid Waste Division’s Refuse Transfer Stations and Landfill operate seven days per week, 8-hours per day. We have established minimum daily manpower requirements to ensure safe and regulatory compliant operations, therefore overtime call-outs are necessary when scheduled employees are absent. There is insufficient redundancy of scheduled and qualified employees to meet manpower requirements. The Division has struggled to identify sufficient pattern behavior that is essential for successful enforcement of collective bargaining contract provisions against sick leave abuse. As a result, overtime costs for both operations are substantial, typically triple the annual budgeted amount for the operation in recent years. The Division has consulted with their counterparts on the other islands and is working on a policy aimed at addressing sick leave abuse. In addition, we are hopeful that the Sick Leave Buyback program led by HR is effective in curbing absenteeism. REFUSE TRANSFER STATION RENOVATIONS Improved regulatory compliance and operational efficiencies are the basis for the planned renovations at the County Refuse Transfer Stations (RTS). Last year’s renovation work at the County’s Lihu‘e RTS was followed by construction to convert the Kapa‘a RTS to a top-load system for mixed solid waste and greenwaste. Kapa‘a RTS is projecting a phased reopening starting this month. Kapa‘a RTS greenwaste operations remained open and a temporary operation (Fridays and Saturdays) to accept bagged trash in automated refuse trucks at the Kapa‘a Baseyard, provided some relief to the community during this interim period. A similar top-load conversion project at Hanalei RTS is projected to start during Fall 2026. Additional work at Lihu‘e RTS including replacement of deflector plates, as well as repair of the tipping floor will be scheduled in the near future as we try to minimize closures to the greatest extent possible. Finally, in the near future, additional work will be required at the Kapa‘a RTS for the installation of deflector plates in both top-load areas and scheduling of the work will seek to minimize impacts to hours of operation. 11 REPAIR OF VEHICLES AND HEAVY EQUIPMENT The lack of qualified mechanics and the aging fleet of highly mechanized automated refuse collection (ARC) vehicles has continued to challenge the automotive repair shop operation to maintain the minimum number of seven ARC trucks to service the same number of weekly refuse collection routes. While at a higher-than-normal cost, the refuse collection operation has been able to overcome ARC breakdowns by utilizing operators and trucks from other routes on an overtime basis, upon completion of those routes. The automotive repair shop strives to ensure spare ARC trucks are available for the operation. Additionally, the lack of mechanics and regularly downed equipment has been a challenge and has resulted in materials backlog at refuse transfer stations and unpredictable facility closures. Unreliable RTS operations negatively impact refuse collection operations that utilize these facilities and longer run times to empty collection trucks result in delays to complete routes and overtime charges by the operator. Residential self-haulers are also impacted negatively resulting in complaints and increases in traffic on the roadway for return trips and potential for illegal dumping. ROADWAY/ROADSIDE VEGETATION MAINTENANCE The Roads Division continues to face the ever-growing challenges of maintaining road safety by keeping vegetation in check while using minimal herbicides. Over the years, the reduction of spraying directly increased the need for mechanical and manual labor to keep up with the quick growing vegetation such as Guinea grass in check. Maintaining the current fleet of bushwhackers in working order and sufficient daily manpower remains a constant challenge for Road Divisions laborers and operators. 4. OPERATIONAL HIGHLIGHTS FROM FY 2026 The fire hazards presented by drought impacts to unmaintained areas remain a concern, and communities on all but North Kaua‘i, were precariously close to these fire hazards. DPW resources, including water tankers and bulldozers, mainly serve in a supporting role to the Kauaʻi Fire Department and PMRF Fire Crews during fire response, and this arrangement has worked out significantly well. With the Mayor’s support and County Council’s appropriation of funding in the current FY 2026 budget, we continue the process of securing the brush clearing equipment for County Crews to facilitate fire mitigation around our facilities and on County property in our communities. This equipment will also enable our crews with additional capability to address roadside vegetation maintenance responsibilities. Our crews continue to go above and beyond in keeping our community safe. During the current fiscal year, the Department of Public Works, has continued to maintain brush cutting at the County’s Kaiakea property, the Ahukini to Ninini Point property, and the Waimea 400 property. DPW bridge and road improvement and repair projects achieved progress: Hanapepe, Kipu, and Koloa Bridge repair projects (completed), Aliomanu Road Stabilization (Completed), Temporary bridges at Niumalu and Anahola (completion anticipated this Spring) with continued environmental and design work on the permanent replacements. Completed work on Wawae Road drainage improvements and continued progress on Island-Wide Road Resurfacing contracts. Commenced or soon to commence construction work on: Puhi Road Rehab Ph 2, Poipu Road Safety & Mobility Project, Hanapepe Road improvements, Haleko Road Emergency Repairs, and Kahiliholo Culvert Replacement. More than a dozen other projects in various stages development, including design and environmental work. Wastewater projects completed or near commencement of Construction valued at $40.8 Million.