Union-negotiated pay hikes and federal and state mandates contributed to a workaday county budget expected to rise 4.3 percent to $434.7 million next year.
The 2015-16 spending plan released by Mayor Billy Kenoi late Friday has few new frills, projects or services.
“This proposed budget represents our departments’ best efforts to meet the needs of our growing community in a timely and fiscally responsible fashion,” Kenoi said in his budget message. “Our economy is in a state of gradual recovery. We believe our investments in infrastructure, renewable energy, and parks and recreation are critical to the future of Hawaii Island.”
Kenoi said the ongoing lava emergency in Puna shouldn’t significantly affect the budget, because those extra expenses should be covered by federal funds.
The county had spent $711,311.78 on lava-related overtime as of Dec. 31, the latest figure available. Capital expenses, such as road improvements, will be handled by a $20 million bond.
The budget manages to respond to federal mandates on disabled transportation services and state mandates on GASB-45 post-employment medical benefits while not raising property taxes or fees on services. GASB-45 payments will increase by $1.2 million to $7.3 million.
A $1 million increase to the Mass Transit Agency will pay for transportation services for disabled riders as mandated by the federal government. Adding vehicle registration services in Waimea, where two Department of Motor Vehicles clerks will supplement the driver license services at the police station, will cost another $150,000.
The county also plans to spend $800,000 more for vehicle disposal and $800,000 more for organic waste and equipment repairs in the Department of Environmental Management. Fixing the sewer outfall in Keaukaha is expected to cost an additional $1.2 million.
On the revenue side, about $7.4 million is expected to come from taxes on a 3 percent increase in property values; another $3.1 million will come from new federal and state grants. The county expects to collect $1.2 million more on charges for services. And there’s an additional $3.6 million more in carryover savings from the current year.
Most of the $17.8 million total increase is slated for employee contracts negotiated at the state level.The raises are implemented throughout the system.
The budget for the Police Department will increase more than $4 million to $62.1 million. The Fire Department will increase more than $6 million, to $45.1 million.
“The budget contains only what is necessary to continue services,” said Finance Director Deanna Sako.
The County Council will undertake a line-by-line scrutiny of the budget with each county department April 22 to 24. The mayor then submits an amended budget May 5 that takes into account the certified property values.
The council has until June 30, the last day of the fiscal year, to pass a budget or the mayor’s budget automatically goes into effect July 1.
“We look forward to hearing what the council has to say. We’re looking forward to their input,” Kenoi said.
Last year’s budget, Kenoi’s first budget hike since taking office in 2008, was $416.9 million, or 5.7 percent higher than the previous year. It added 10 new positions and included raises for almost all county employees, union and nonunion alike. More than $20 million of the $22.6 million increase went for employee raises and increases in benefits.
The total value of net taxable real property last year, at $25.2 billion, was $1.7 billion more than in 2013-14, a 7 percent increase.