LIHU‘E — County officials recently announced the cancellation of the county’s first furlough day of 2011, which would have been this Friday. “We have canceled the upcoming furlough day so all county employees are scheduled to report to work on
LIHU‘E — County officials recently announced the cancellation of the county’s first furlough day of 2011, which would have been this Friday.
“We have canceled the upcoming furlough day so all county employees are scheduled to report to work on Jan. 14,” Mayor Bernard Carvalho Jr. said in a news release Monday. “The administration has also sent a money bill to the County Council for their consideration that would completely eliminate furloughs and salary reductions for the remainder of fiscal year 2011.”
As of June 30, the county had a surplus of $43.1 million. The unassigned fund balance increased by $10.3 million, or 31 percent, from the prior year, according to the Comprehensive Annual Financial Report for fiscal year 2010.
Following due process, the Kaua‘i County Council is expected to take a final vote on the bill during its Jan. 26 meeting.
The council will hold a public hearing on the furlough money bill at 1:30 p.m., Wednesday, at Council Chambers in Nawiliwili.Attributing the county’s fiscally conservative approach over the years to its current stable financial position, the mayor noted that a number of cost-saving measures were put into effect.
Among the cost-saving measures implemented by the county over the last two years are: deferring pay raises for the mayor and most department heads; dollar-funding vacant positions; leaving funded positions vacant; deferring equipment purchases; restructuring debt; reducing travel; restricting take-home vehicles; two-day per month furlough for all county employees except for HFFA and SHOPO union members; and no collective bargaining pay raises for HGEA and UPW employees.
To raise more revenue, the county has increased motor vehicle registration fees, increased drivers licensing fees and initiated online bill-paying fees.
While the county is currently in a financially stable position, Finance Director Wally Rezentes Jr. cautioned that the county must continue to be conservative.
“We expect real property revenues to drop again, while the employee retirement system, employee health fund and utility costs are going to increase,” he said in the release. “In addition, the collective bargaining process has begun and this year all four unions — HFFA, HGEA, SHOPO, and UPW — will be involved.”
Rezentes also noted that there are a number of factors that could negatively impact the budget for fiscal year 2012 that are not under the control of the county, such as the state transient accommodations tax. Kaua‘i’s share is approximately $12 million. The county’s operating budget for the current fiscal year is $147.03 million.
For more information regarding the county’s financial standing, see the CAFR at www.kauai.gov/finance.
