HomeMy WebLinkAboutResolution No. 2026-17COUNTY COUNCIL
COUNTY OF KAUA'I
l\esolutionNo. 2026-17
RESOLUTION APPROVING THE PROPOSED
FISCAL YEAR 2026-2027 OPERATING BUDGET FOR THE
HAWAl'I STATE ASSOCIATION OF COUNTIES
WHEREAS, the Hawai'i State Association of Counties (HSAC) is a nonprofit
corporation comprised of members of the four county councils of the State of Hawai'i;
and
WHEREAS, at its meeting on May 8, 2026, the HSAC Executive Committee
approved the proposed HSAC Fiscal Year 2026-2027 Operating Budget, which is
attached hereto as Exhibit "A"; and
WHEREAS, Section 18 of the HSAC Bylaws requires that each council shall
approve the HSAC Operating Budget before the ensuing fiscal year begins, or as
reasonably close thereto as possible; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUA'I, STATE
OF HA WAI'I, that the proposed HSAC Operating Budget for Fiscal Year 2026-2027,
as provided in Exhibit "A," is approved.
BE IT FINALLY RESOLVED, that a certified copy of this Resolution shall be
transmitted to the President of the HSAC Executive Committee.
Introduced by:
BERNARD P. CARVALHO, JR.
(By Request)
V: \RESOLUTIONS \2024-2026 TERM\HSAC FY 2026-2027 Budget Resolution CNT_dmc.docx
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Exhibit A
FY2025-26 FY 2026 Actual FY26-27
Approved YTD (July 2025 Proposed
Budget -January, 2026) Bude:et
1 REVENUES
2 HSAC Membership Fees $60,000.00 $90,000.00
3 HSAC Annual Conference, Hawaii
County $164,542.38
4 NACoDues
5 Hawai'i County $3,970.00 $3,970.00
6 City and County of Honolulu $20,330.00 $20,330.00
7 Kaua'i County $1,466.00 $1,466.00
8 Maui County $2,893.00 $2,893 .00
9 Events Income $100,000.00 $16,500.00 $135,000.00
10 Interest Income $30.00 $28.49 $30.00
11 Miscellaneous $0.00 $0.00
12 NACo Prescription Drug
Marketing Fee $500.00 $10,104.99 $500.00
13 NACo 3 + 1 $0.00 $806.00 $1,500.00
14 TOT~REVENlJJ.t . Sl89~1&9:41&· .. ••. S19l ,tll.8' l·UB;'89~ftf>-
15
16 EXPENSES
17 Executive Committee (EC)
18 EC Travel $31,800.00 $19,023.54 $31,800.00
19 EC Auditing/Professional Services $20,000.00 $6,928.10 $20,000.00
20 EC Meeting Supplies $700.00 $125.65 $700.00
21 EC Subscriptions & Software $2,000.00 $1,507.29 $4,000.00
22 Special Committees
23 Special Committee Travel $0.00 $0.00
24 Special Committee Miscellaneous $0.00 $0.00
25 NACo
26 NACo Board Travel $30,000.00 $14,091.34 $30,000.00
27 NACo Steering Committee Travel $0.00 $0.00
28 NACo Events & Outreach $10,000.00 $10,000.00
29 NACoDues $28,659.00 $29,063.00 $28,659.00
30 WJR
31 WIR Travel $15,000.00 $7,177.63 $15,000.00
32 WIRDues $3,804.00 $3,804.00
33 Other
34 HSAC Promotion~ Events and
Outreach $5,000.00 $78.90 $5,000.00
35 HSAC Consulting Fund (Lobbyist) $25,000.00 $10,471.20 $31,413.60
36 HSAC Administrative Services
(ED) $50,261.76 $20,942.40 $56,544.48
37 HSAC Executive Director Travel $11,000.00 $11,000.00
38 NCCAEDues $750.00 $750.00
39 NANCLA Donation $2,000.00
40 D&O and General Liability
Insurance $1,315.00 $1,562.00 $1,650.00
41 Miscellaneous
43
44 Total Revenue $189,189.00 $191,981.86 $255,689.00
45 Total Expenses $235,289.76 $110,971.05 $252,321.08
46 Net ($46,100.76) $81,010.81 $3,367.92
HSAC Budget Overview and Justification
FY 2026-2027
The FY 2026-202 7 Hawai' i State Association of Counties (HSAC) operating budget reflects a
necessary and intentional shift toward long-term fiscal sustainability and alignment with the
organization's expanded scope of work. Historically, HSAC budgets have not been structurally balanced
and have consistently carried negative balances, relying on prior reserves or variable revenues to offset
ongoing expenditures. Moving forward, it is the clear intent of the Association to adopt and maintain fully
balanced budgets as a matter of sound financial practice.
To achieve this, the proposed budget strengthens both revenue generation and expenditure
alignment. On the revenue side, this includes a modest increase in county membership contributions as
well as a strategic expansion of event programming. Event-related revenue has grown from $100,000 to
$135,000 and now represents the primary source ofHSAC's funding. While this strengthens the
organization's financial position and reduces reliance on dues, it also requires significantly greater
coordination, plam1ing, sponsorship development, and administrative oversight to successfully execute
multiple events each year.
On the expenditure side, the budget includes necessary adjustments to administrative services and
consulting support, both of which have remained largely unchanged since their establishment in 2022.
These adjustments reflect standard inflationary increases as well as the substantial expansion in HSAC's
responsibilities over that period.
Since 2022, HSAC has evolved from a primarily coordination-focused body into a more active
intergovernmental entity. This includes significantly expanded legislative engagement, ongoing
coordination with legislative leadership, and direct support for joint efforts with the Speaker's Office on
key statewide issues such as affordable housing, water policy, and taxation. In addition, HSAC has
increased its event programming from a single annual conference to, on average, two or more events per
year, each requiring planning, fundraising, stakeholder coordination, and execution.
The proposed increases to the HSAC Consulting Fund reflect the growing demand for legislative
strategy, policy coordination, and intergovernmental engagement. Similarly, adjustments to administrative
services recognize the expanded role of the Executive Director in managing day-to-day operations,
coordinating across counties and state partners, supporting national association activities, and overseeing
the increased volume and complexity of HSAC events and programs.
Taken together, this budget represents a balanced and sustainable financial plan that aligns
HSAC's resources with its current responsibilities. It ensures that the Association can continue to
effectively serve as a unified voice for the counties, facilitate intergovernmental collaboration, and deliver
programs and services that benefit all member jurisdictions, while operating within a disciplined and
transparent financial framework.
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Membership Fees -$90,000
Membership fees are increased from $60,000 to $90,000, or $22,500 per county, to ensure
sufficient revenue to support increased operational costs, including administrative services and
consulting.
NA Co Dues -$28,659 (pass-through)
No change. Each county remits its assessed NACo dues through HSAC.
Event Income -$135,000
Event income reflects anticipated revenue from the annual conference and additional
HSAC-hosted events. This is an increase from prior years to reflect more active revenue
generation efforts beyond the annual conference.
Interest Income -$30
No change.
Miscellaneous -$0
No change.
NACo Prescription Drug Marketing Program -$500
No change.
NACo 3 + 1 -$1,500
New/adjusted revenue reflecting participation in the NACo 3+ 1 program.
EXPENSES
Executive Committee
EC Travel-$31,800
No change. The EC Travel budget remains at $31,800 and continues to support both interisland
meetings and mainland conference participation.
• Interisland travel:
2 in-person meetings per year x 3 traveling members x $300 = $1,800
• Mainland travel:
4 members x 3 conferences x $2,500 = $30,000
Total EC Travel= $31,800
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This allocation remains consistent with prior year levels and supports full participation in NACo,
NCCAE, and WIR conferences, in alignment with allowable travel expenses under HSAC
bylaws.
EC Auditing/Professional Services -$20,000
No change.
• Audit: $15,000
• Accounting and tax filing: $5,000
EC Meeting Supplies -$700
No change.
• $350 per meeting x 2 meetings
EC Subscriptions & Software -$4,000
Increased from $2,000 to reflect higher costs for essential services including:
Quick:Books, website hosting, domain fees, Zoom, Google Workspace, and required state filings.
Special Committees
Special Committee Travel -$0
No change. Currently no special committees.
Special Committee Miscellaneous -$0
No change. Currently no special committees.
NACo
NACo Board Travel -$30,000
No change.
• 3 board members x 4 meetings = $2,500
NACo Steering Committee Travel -$0
No change.
NACo Events & Outreach -$10,000
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No change.
Supports HSAC-hosted events at NACo conferences.
NACo Dues -$28,659
No change (pass-through).
WIR·
WIR Travel -$15,000
No change.
• 2 members x 3 meetings x $2,500
WIR Dues -$3,804
No change. Note that WIR Dues are paid out ofHSAC revenue and are not collected by the
counties.
Other
HSAC Promotion, Events, and Outreach -$5,000
No change.
Supports communications, outreach, and promotional materials.
HSAC Consulting Fund (Lobbyist) -$31,413.60
The HSAC Consulting Fund is increased from $25,000 to reflect expanded operational and
legislative support.
Since 2022, the consulting contract has only been adjusted to include the GET. During that time,
HSAC's workload has grown, including an increase from one annual event to, on average, two
events per year, as well as significantly expanded legislative engagement.
This includes ongoing coordination with legislative leadership and support for a joint working
group with the Speaker's Office on key statewide county issues, including affordable housing,
water, and tax policy.
HSAC Administrative Services (Executive Director) -$56,544.48
The HSAC Administrative Services budget is increased from $50,261.76 to reflect expanded
responsibilities.
Administrative workload has grown in recent years, driven by increased event coordination,
moving from a single annual conference model to supporting, on average, two conference events
per year, as well as increased intergovernmental coordination and legislative engagement.
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HSAC has also expanded its role in administering member services and programs, including
coordination of national association programs and efforts to strengthen collaboration among the
counties and with state partners. In addition, increased event activity has required greater
coordination and fundraising efforts, contributing to higher event-related revenues.
These activities support HSAC's role in enhancing the effectiveness of county government and
advancing shared priorities.
HSAC Executive Director Travel -$11,000
No change.
• 3 mainland trips x $3,000 = $9,000
• Annual conference travel reimbursement = $2,000
Total= $11,000
NCCAE Dues -$750
National Council of County Association Executives (NCCAE). No change.
NANCLA Donation -$2,000
New line item to support partnership and engagement with national legislative associations.
D&O and General Liability Insurance -$1,650
Increased from $1,315 to reflect updated premium costs.
Miscellaneous -$0
No change.
SUMMARY
Total Revenues: $255,689
Total Expenses: $252,321.08
Net: $3,367.92 (balanced budget)
Consistent with HSAC bylaws requirement that the budget present a complete :financial plan
with balanced revenues and expenditures.
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