Kaʻū News Briefs, Sunday, March 3, 2019

MORE POLICE OFFICERS FOR KAʻŪ are included in Mayor Harry Kim's proposed County of Hawaiʻi operating budget for Fiscal Year 2019-20. Kaʻū and Puna would receive funding for ten additional police positions. Body cameras are in the budget. The police department would add nine supervising sergeants and six dispatchers islandwide.
     Ocean View residents and various community groups have long called for more police officers in Kaʻū to service the locations that are very far from one another, from Volcano to past Ocean View. The mayor's budget message states that police positions are being added "to help improve safety for our community and our officers." The police department budget is proposed to increase by $5.8 million.

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THE FIRST DRAFT OF THE NEXT COUNTY BUDGET proposes a 10.7 percent increase over the current budget. The mayor calls his proposal "a balanced budget," fueled by $573.5 million in revenues and appropriations going into the county's General Fund and 13 special funds.
     The process includes review by the County Council and negotiations with the county administration, along with public input.

Mayor Harry Kim Photo by William Neal

     The budget proposal includes two new funds: the General Excise Tax Fund, funded by an increase in the sales tax within Hawaiʻi County; and the Short Term Vacation Rental Enforcement Fund, funded by fees charged to those applying to operate short term vacation rentals, under new rules and requirements.
     The 2019-2020 budget proposal includes $26.1 million in additional salaries, wages, and employee benefits expenses within Hawaiʻi County government. "Fringe benefit increases were a result of higher retirement contributions, health benefits and post-employment benefits, for both our current employees and our retirees," says the mayor's budget message. " Increased salaries and wages are primarily a result of collective bargaining, but also include the addition of several necessary positions."
     The most significant increase in positions is for the police department. Says the mayor, "This proposed budget represents our departments' best efforts to meet the needs of our residents in a timely and responsible fashion, while striving to maintain the level of services our residents deserve. We are committed to continuing our investment in infrastructure, transportation, public safety, and creating safer communities. These investments are critical to the future of our Hawai‘i Island. We look forward to working closely with the Hawai‘i County Council as we prepare a responsible budget to meet the needs of those that we serve."

     COUNTY REVENUE: Real property tax revenue is expected to increase by $15.7 million or 5 percent, "primarily due to new construction and an increase in taxable values." Fuel tax revenue is expected go up by  $6.1 million, an increase of 35 percent. The portion of the 4.25 percent General Excise Tax that goes directly to the county is .25 percent and is expected to generate $25 million. The new short term vacation rental registration fees and fines are expected to reach about $846,000 for the coming fiscal year. Charges for county services are expected to increase by $2.8 million due to increases in sewer charges and tipping fees. Intergovernmental revenue will increase by $3.1 million. "All of these increases are essential to providing services to our community," according to the mayor's message.
     Revenue from interest and investment earnings is expected to increase by $1 million. Increases in grant revenues are estimated at about $3.1 million.

     COUNTY WORKER PAY, BENEFITS: The largest increases in expenditures in the proposed budget relate to salaries, wages, and fringe benefits. "Our contribution to the Employees' Retirement System is expected to increase by $12.3 million, (25.8 percent), due to the increase in rates passed by the Legislature in 2017 and the increase in salaries and wages. This is the third of four scheduled employer retirement contribution increases through fiscal year 2021. The ERS rates were increased by 16 percent  this year for all categories of employees. By 2021, the retirement contribution rates will have increased 64 percent for police and fire employees and by 41 percent for our general employees over the four year period. Fringe benefits also increased due to the $5 million increase in health insurance premiums."
     The budget proposal says that contributions to the Employer Union Trust Fund will increase by $5 million – 8.5 percent – due primarily to the increase in premiums and the increase in other post-employment benefits required by state law.

Hawaiʻi Island public transport will receive more funding, if Mayor Harry Kim's proposed budget goes through as presented. Photo from heleonbus.org

     PUBLIC TRANSPORTATION: The mayor's budget message says, "Our transit system continues to be a priority as we implement the Mass Transit master plan. Significant funding was provided to replace our aging fleet of buses and to provide matching funds for our anticipated federal grants. New positions were also added to help improve our transit service. Additional funding for our roads will help us to achieve our goal to repave each mile of road once every 30 years. Eleven miles of roads have been paved in the first half of this fiscal year, and have greatly improved the commute for many of our residents." The budget calls for $2.7 million for additional road maintenance and equipment. Grants of $1.4 million are expected to help with improvements in mass transit, with a budget increase of $5 million to pay for new buses, new staff, and federal grant matching money for the transit master plan.

     WASTEWATER: The mayor's budget points to many sewage treatment projects that will be coming online in the near future. "Their operations are growing to be better able to track the necessary repairs and maintenance of our current facilities and prepare for the expansion of their operations as new projects come on line. ....Funding for sewer was increased by about $2.4 million, or 22.04 percent, due to the increase in personnel for the new asset management system being developed by the EPA and for the operation of the new R-I facility coming online. In addition, engineering positions and funding were added to help catch up on repairs and maintenance at current facilities."
     The budget description says that "Debt service increased $3.4 million, or 7 percent, due to State Revolving Fund loans for upcoming sewer and solid waste projects, as well as the increase for new bonds to be issued for projects already in progress."

     BUILDING DIVISION: According to the mayor, "After years of budget cuts, the revenue increases discussed above have generated funding to be able to provide critical services to our community. In addition to the items listed above, two additional plan examiners were added to relieve the backlog in building permits."
      He also pointed to county Parks and Recreation. The budget includes "critical new positions and related equipment to help better maintain the parks in our communities."
     HOMELESSNESS: Says the mayor, "We have not included additional funding to address the homeless problem on our island. However, funding has been received from the Governor's office to create an additional shelter to service this portion of our population."
     HEALTH, EDUCATION AND WELFARE programs will receive $750,000 through grants.
     INFORMATION TECHNOLOGY increases of approximately $500,000 were included for network improvements and new servers.
     SHORT TERM VACATION RENTAL ENFORCEMENT planning expenses are budgeted at approximately $846,000.  

     THE GENERAL EXCISE TAX FUND includes a transfer of $10 million to the Capital Projects Fund for transit and road projects to improve the transportation system on Hawaiʻi Island.

     The mayor concludes, "This budget still does not include everything needed, but it does go a long way towards improving the services required by our community."
      THE PUBLIC SAFETY DISASTER AND EMERGENCY FUND increases by $1.25 million "to be prepared for future disaster," says the mayor's budget proposal.