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HomeMy WebLinkAboutFY 2027 (Planning Department) PLANNING DEPARTMENT FY 2027 BUDGET AND OPERATIONS SYNOPSIS Ka‘aina Hull Director 1 Department: PLANNING Fund: GENERAL FUND 1. FY 2026 to FY 2027 BUDGET COMPARSION 1 2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET The Planning Department’s FY 2027 budget request reflects an increase of $675,358 or 17.2% from the FY 2026 Budget. The FY 2026 Operating budget was $3,925,296 and the proposed FY 2027 Budget is $4,600,654. Highlights of the changes to our FY 2027 operational budget are as follows: a. Increase in Salaries by $434,702. The majority of the increases in funding are due to the request to fund four (4) existing Coastal Zone Management (CZM) positions and a Wildfire and Built Environment Specialist position. First, the request to fund the Planning Department’s existing four (4) CZM positions includes the total cost for salaries that amount to $240,020 plus fringe. These positions have existed and been filled for the past 40 plus years. They have been funded through the Federal CZM grant program; however, the Federal Administration is not anticipated to be releasing any funds for fiscal year 2027 or for years following. To avoid ending the CZM program—the implementation of state and county coastal policies and the enforcement of them—and the program’s associated staff, funding these four positions is necessary. In addition, the increase in funding for salaries includes the request to fund a new Planning Program Manager (SR-24) to direct and coordinate the Built Environment’s Wildfire and Wildland Urban Interface (WUI) program. This request involves funding for this position from the General Fund with the associated SR-24 minimum annual salary of $74,652.00 plus fringe. The Planning Program Manager would establish broad plans and priorities for wildfire resiliency within the built environment; conduct program analyses and develop budgets; review and recommend ember mitigation approaches for specific single family and multi- family housing projects; review and recommend defensible space approaches for multi-family homeowners associations (HOAs); direct and coordinate the County’s Wildfire Home Assessment Program. An existing planner position (No. 2001) and an existing inspector position (No. 2029) could be re-organized to fall under this position for both the implementation and enforcement of the wildfire policies within the built environment. Currently, the National Fire Protection Association (NFPA) code requirements in our building code are focused solely on ensuring that the structure can adequately facilitate evacuation of tenants in a timely manner should that structure catch fire. The Fire Code does not address wildfire mitigation within the structure, nor does it contemplate defensible space around the structure. Much in the same manner that the floodplain management program was established for the built environment to be re-calibrated to live with water, a similar program is necessary to re-calibrate our built environment to live with wildfire. For climate resiliency, having such a program accordingly staffed is appropriate. It also aligns with our affordable housing priorities. In December 2025, Hawai‘i Appleseed Center for Law & Economic Justice released a report highlighting the skyrocketing cost of homeowners insurance in multifamily dwelling unit sites, with nonrenewals for insurance policies increasing by 216 percent from 2018 to 2023, and with increases in premiums as high as $2,000.00. The departure of insurance providers and the corresponding increase in premiums is a direct result of risks associated with climate hazards, in particular wildfire hazards post 2 Lahaina. This proposed Planning Program Manager would pursue cost effective wildfire resiliency strategies and work directly with statewide insurance providers as well as national partners, such as the Insurance Institute for Business and Home Safety (IBHS), to retain and attract insurance providers for multifamily dwelling sites, which are currently fast becoming uninsurable. b. Increase in Benefits by $241,353 or 17.8%. The increase will ensure we are adequately positioned to meet future obligations for Other Post-Employment Benefits for existing and the new positions. This will provide for flexibility in addressing any potential increases. c. The FY 2027 Non-Personnel Operational Budget Allocation for the Planning Department has not been increased. To address any projected inflationary adjustment for FY 2027, we will be using our current fund amounts. 3. OPERATIONAL HIGHLIGHTS FROM FY 2026 a. East Kaua‘i Community Plan The East Kaua‘i Community and Circulation Plan (EKCCP) is a long-range land-use and transportation plan for the East Kaua‘i Planning District and will update the 1974 Wailua- Kapa‘a Development Plan. The EKCCP will produce detailed town plans for Wailua, Kapa‘a, Kapahi, and Anahola, and address key topics such as housing, land use, circulation, historic preservation, civic space, and infill development. The public process was launched through a virtual and in-person Open House in Summer 2024, along with a survey. A Community Working Group was also convened to guide the planning process. Recent community input was gathered through a multi-day town design workshop. This was followed by a walk audit for people with disabilities organized with Easter Seals. A youth council was formed to ensure multigenerational input is obtained. The youth council met multiple times over the 24-25 school year and ultimately produced a vision statement. Over Summer 2025, five focused policy workshops were held on important topics from climate hazards to housing. Other project tasks include a parking study, parks audit and survey, traffic analysis, and development of a form-based code. The team is currently drafting the plan which will be for public review in late Spring 2026. The tentative project schedule is: • Finalize public draft: Spring 2026 • Public open house and prepare Planning Department draft: Summer 2026 • Planning Commission review: Fall 2026 • County Council review: Late 2026 b. Built Environment and Wildfire Resiliency On September 8, 2025, a Memorandum of Understanding (MOU) was signed by the County of Kaua‘i, Hawai‘i Wildfire Management Organization, and Headwaters Economics to receive technical assistance through their Community Planning Assistance for Wildfire (CPAW) program. 3 Through the MOU and the CPAW, the Planning Department has convened a multi- disciplinary task force with the Fire Department, Kaua‘i Emergency Management Agency (KEMA), and the Building Division. This task force has begun to identify opportunities for wildfire risk reduction in the built environment. In FY 2027, the Department will prioritize the three following wildfire resiliency measures: 1. Implementation of a wildfire home assessment program made available to the general public upon request; 2. Work with housing developers to adjust building strategies and homeowner association (HOA) approaches to address wildfire ember vulnerability with little to no costs associated; 3. Pursue strategies with the insurance industry both statewide and nationally to address the current departure of the industry from multifamily dwelling unit sites due to climate resilience including wildfire vulnerability. c. Continued Enforcement of Transient Vacation Rentals With a mix of proactive enforcement and the administration of the MOUs with Airbnb and Expedia, we are seeing the lowest rate of illegal vacation rental operations in over a decade. Back in 2017, there were an estimated 1,400 illegal TVR operations. Over the past 8 years with effective enforcement and the MOUs in place, that number is down to less than 50 estimated illegal TVRs currently. Airbnb and Expedia account for approximately 70 percent of the market share of vacation rental advertisements for the County of Kaua‘i. In 2020, the County of Kaua‘i was the first municipality in the nation to sign voluntary MOUs with vacation rental platforms whereby the platforms assist the municipality in shutting down illegal vacation rentals. In late 2025, while at the Vacation Rental World Summit in Rome, the Director and the Mayor entered formal discussions with Booking.com to secure a similar MOU with Booking.com for enforcement against those illegal vacation rentals advertised on their platform. There have been initial commitments by Booking.com to aim to secure an MOU. Booking.com represents an additional 15 percent of the global market share for Kaua‘i vacation rentals beyond Airbnb and Expedia. If the MOU is secured, the County of Kaua‘i will have approximately 85 percent of the global market’s vacation rental platforms working in concert to shut down illegal operations on the island. d. Placemaking The Planning Department continues to initiate and coordinate with community organizations and government partners to host, promote, and facilitate Placemaking. Placemaking includes programmatic planning efforts such as site plans and includes temporary programs such as Quick Build projects and the Play Streets Program at the Kekaha Family Fun Day and the Rice Street Block Party. 4 e. Community Plan Implementation and General Plan Monitoring and Implementation Program The Planning Department continues to draft and submit legislation to the Planning Commission and the County Council to implement the General Plan and Community Plan. Specific Bills include, Form Based Code Zoning ordinances, continued de-regulation of residential zoning district requirements, and agriculture farm dwelling restriction and clustering requirements to slow the overwhelming speculative forces for large agriculture gentleman estates and the negative impact they have on the agriculture industry. The Planning Department initiated procurement for a consultant to update the 2016 General Plan projections. The project will develop forecasts for county and regional population, households, and jobs to the year 2045 based on the 2020 Census release and subsequent American Community Surveys. This information will inform future community plan updates and related studies. 4. REQUIRED UPDATE ON PLANNING ENFORCEMENT ACCOUNT EXPENDITURES: Section 8-3.5 (b) of the Kaua‘i County Code, 1987 as amended, establishes a Planning Enforcement Account to assist the Planning Department with enforcement of codes, statutes, and regulations for which it has the authority to enforce. The purpose of the direct appropriation of funds to the Planning Enforcement Account enables the Planning Department to have funds readily available to perform enforcement responsibilities. All Civil Fines levied and received by the Department are deposited into the Planning Enforcement Account. Section 8-3.5 (b) also requires the Planning Department to provide an annual report to the Council as part of the Mayor’s budget submittal on March 15th of each year. The report provides the expenditures and outcomes of the Planning Enforcement Account within Fund 251. For the period from July 1, 2024 to June 30, 2025, we collected $82,007 in fines. Section 8-3.5(b) allows the Department to utilize the funds to retain independent contractors to assist with the enforcement of the Comprehensive Zoning Ordinance (CZO) and other codes. The Planning Department expended approximately $76,777.38 during FY 2025. These expenditures were used to purchase equipment, supplies, training, uniforms, and the uniform allowance for the Enforcement Division. Pursuant to Section 8-3.5(b), any uncommitted funds in excess of $500,000 shall be transferred and deposited into the General Fund at the close of the fiscal year. As of March 2026, the balance of funding was $35,783.28 and there was no funding transferred from the 251 Planning Enforcement Account into the General Fund for FY 2025.