Highlights from FY11 budget review

NAWILIWILI — Kaua‘i County Council members have been keeping busy since April 9, reviewing Mayor Bernard Carvalho Jr.’s proposed $146.29 million operating budget for Fiscal Year 2011, which starts July 1.

All departments have been asked for at least a seven percent reduction in operational costs to adjust to the economic downturn. The proposed budget also asks for furloughs, affecting nearly all departments.

Police officers and firefighters may not be subject to furloughs. But scheduled furloughs in civilian personnel inside the Police and Fire departments and in the Office of Prosecuting Attorney, however, may affect KPD and KFD operations.

Many council members questioned department heads about their ability to get the job done timely in spite of personnel shortages.

Council Chair Kaipo Asing told Carvalho he wasn’t convinced the furloughs would end up saving the county some money.

Office of Economic

Development

OED Director George Costa said the department won’t receive a $500,000 Visitor Stimulus Grant it received a year ago.

“If it weren’t for the Visitor Stimulus Program we would be in a lot worse shape than we are right now,” said Costa, adding the grant was helpful in promoting tourism.

Hotels, condos and timeshares went from double-digit losses in the period between January and June of 2009, compared to the previous, to a 1.4 percent increase from 2008.

The Hawai‘i Tourism Authority eliminated a $50,000 grant that provided daily airport greetings by a duo performance.

A Consumer Promotion Grant of $75,000, down from last year’s $145,000, will continue to support the Kaua‘i Visitors Bureau, helping to promote local events.

OED will continue to support the YWCA Family Violence Shelter with $25,615, and the Sexual Assault Treatment Center with $37,856. The Food Bank will also receive $5,000 from OED.

OED budgeted to spend $8,500 in advertising for the Kaua‘i Made program, assisting over 70 Kaua‘i businesses, plus $21,250 in advertising for the Kaua‘i Film Commission. At least four major film productions are scheduled for Kaua‘i this year, and a fifth one may happen, according to Costa.

Overall, OED reduced its operating expenses by 51 percent, according to Costa, and its budget for FY11 was reduced by 37 percent. Its overall budget for FY11 was reduced to $1.15 million from FY10 $1.83 million.

A two-day per month furlough will represent a 9.3 percent, or $35,620 reduction in the department’s pay roll.

Kaua‘i Civil

Defense Agency

Kaua‘i has 54 warning sirens island-wide, which are tested monthly. Half of them are solar-powered.

Administrator Mark Marshall said last month they had five or six failures. If a siren has power-failure, then it is Civil Defense’s responsibility to fix it, he said.

Councilman Jay Furfaro commended the department for the outstanding work during the recent tsunami alert. Every person listed in the phone book received a call, plus 5,000 registered cell-phones also received warnings.

Marshall said the agency has more qualified registered pilots to fly than any other island. It also has two planes, one for Kaua‘i and one for Ni‘ihau.

Marshall said a good example of the agency’s efficiency happened during the last tsunami threat, when the planes warned fishermen, who in turn acknowledged the warning by signaling back.

On Ni‘ihau the planes photographed several people camping on the beach, and subsequent pictures showed the same people getting onto trucks and driving away, Marshall said.

The agency may be subject to furloughs and short-funding. Marshall told the council he is not comfortable with the measures.

Office of the

County Auditor

County Auditor Ernesto Pasion said the department provides information for policy-makers and the public, and guidance to avoid inefficiencies, risk and exposure to fraud. It also looks for opportunities to help departments to work together effectively.

Furfaro asked Pasion to educate each department about the auditor’s mission.

“I don’t want them to fear the audit,” Furfaro said. “I want them to understand the audit.”

The cost of each auditing hour in last year’s budget was $81.47, according to Pasion, which was consistent with other Hawai‘i counties. If the service would be outsourced, the service would cost in the vicinity of $180 per hour, he said.

The department’s proposed budget was reduced by 21 percent overall. The cuts eliminated a position and imposed a 24 percent cut in the funding for consultant services. Pasion asked that $65,000 be restored to the consultant services,

Office of the

County Clerk

County Clerk Peter Nakamura said the department’s budget for FY11 is $3.66 million, reflecting a reduction of $210,000 from last year’s budget. Furloughs contributed to the decrease.

The department had some extra expenses last year because it moved to the temporary location in Nawiliwili, Nakamura said.

Each election year the department hires temporary election clerks. This year’s budget will include two clerks hired for six months, one clerk for three months, and three clerks for one month.

Personnel Department

Director Malcolm Fernandez said the department has been trying to go paperless since March of last year.

“We’re still not there yet,” Fernandez said. “We have a lot of applicants who are not computer literate.”

Councilwoman Lani Kawahara wanted to make sure all departments would receive the training.

“I do think that’s important as a cost-saving measure … having people trained in what’s OK and what’s not OK,” Kawahara said.

Fernandez said he does feel there is a need for sexual harassment training, and it will cost the county just under $3,000.

Kaua‘i Humane Society

KHS Executive Director Dr. Becky Rhoades said the nonprofit rejects a five percent reduction in its proposed budget, which would amount to a $32,000 decrease.

If the reduced budget is approved, Rhoades said KHS will most likely drop a dead animal pick-up service, and the county will probably do the job.

KHS officers scan animals killed in road hits. If the animal has a microchip the owners are notified. KHS can also dispose of dead animals in its Puhi facility. If county workers pick up dead animals, they will be taken to landfills, Rhoades said.

The City and County of Honolulu workers currently carry a scanner with them, and provide a weekly road-kill report. Rhoades said she traveled to O‘ahu and trained Honolulu workers.

Liquor Department

Director Eric Honma said senior investigator Dexter Shimatsu will be retiring May 31, after 30-plus years of service.

“The vacancy will be filled June 1,” Honma said.

Last year alone, establishments island-wide sold roughly $80 million in alcohol. Liquor fees, licensing and penalties add up to make the department self-sustainable, according to Honma.

Office of the

Prosecuting Attorney

Prosecuting Attorney Shaylene Iseri-Carvalho said the scheduled furloughs may impair the department’s ability to timely charge suspects caught by police officers. The law says that a suspect has to be charged within 48 hours of being arrested, otherwise he or she should be released.

Kaua‘i Police

Department

Chief Darryl Perry said he supports Carvalho’s proposed budget, but had several concerns regarding personnel, facilities and fleet vehicles.

Perry said delaying replacement of aging cars, and short-funding a mechanic position may impact the department.

Waimea and Kapa‘a substations are located in disaster zones. Waimea substation is over 40 years old. KFD is still looking for a permanent site to relocate the substation. The Old Waimea Dispensary option is still on the table, but a deadline for a notice to proceed with the project is coming Sept. 30.

The Kapa‘a substation is a small, 325-square-foot temporary facility used by 25 officers.

Kaua‘i Fire Department

The county’s first emergency helicopter will increase KFD’s budget by roughly $758,000, which includes $100,000 maintenance, $300,000 for a pilot, plus $285,000 for the first of a 10-year lease.

Chief Robert Westerman said the department is currently operating at an “absolute minimum,” and a lagging infrastructure may affect KFD services.

The proposed furlough may not affect firefighters, but water safety officers are scheduled for furloughs. The department is fully staffed with 45 officers.

Housing Agency

The agency’s budget for FY11 is $16.6 million. About 84 percent of the budget goes directly to the housing programs, Director Eugene Jimenez said. The proposed budget reflects a $3.8 million decrease from FY10.

Section 8 takes about 45 percent, or $7.6 million out of the FY11 funding. Jimenez said in the past many landlords were cautious about taking tenants receiving HUD benefits. But he said he has met with major property managers and Realtors to educate them, and the results have been positive.

Agency of

Elderly Affairs

Between salaries and benefits, the agency was able to reduce $102,410 for the FY11 budget. The total operating budget for the agency is $1.3 million, according to Executive Kealoha Takahashi.

Councilwoman Lani Kawahara said the agency’s services have made a “big difference” in a co-worker’s life.

Transportation Agency

The hybrid bus is already here and should go into operation next month, Executive Janine Rapozo said.

The agency was able to reduce its FY11 operation budget by $426,411, because of furloughs and partnerships with the Parks and Recreation Department.

The agency’s total budget for FY11 is $3.87 million. About 25 percent of the budget will come form federal grants, and the remaining from the state’s General Fund.

Ridership on the county bus during the current fiscal year is expected to bring in $550,000. For FY11, the revenue from the bus service is projected to increase to $600,000.

Finance Department

The department’s budget for FY11 is $11.6 million, reflecting a 4.8 percent, or $582,742 decrease, from the current year, according to  Finance Director Wally Rezentes Jr.

A probable increase in the driver’s license renewing fees, and an addition of a new fee in the automobile registration will bring in some extra revenues.

Planning Department

To meet a 7 percent reduction from the FY10 budget, the department reduced its budget by $169,000. The proposed furloughs reduced another $119,000 in its FY11 budget. The total reduction of the department for FY11 will be 13 percent, compared with the current fiscal year.

Parks and Recreation

The department achieved a 13 percent decrease for its FY11 budget. Salaries, despite a nearly $700,000 reduction, still make up a solid 50 percent of the total $8.6 million budget.

Director Lenny Rapozo Jr. said the reductions in the overall budget reflect furloughs, but also partnerships with other agencies that helped save money in operation costs.