LIHU‘E — Departmental reviews for Mayor Derek Kawakami’s proposed fiscal year 2023 budgets have begun.
The Kaua‘i County Council is poring over Kawakami’s March submittal which seeks a $260.2 million operating budget and $48.9 million capital improvement projects budget.
“I know that the Mayor is taking the time to speak individually to each council member to share information, and that is always appreciated,” Council Chair Arryl Kaneshiro said.
Kaneshiro serves as the lead on budget discussions amongst the council.
“This will be the last budget session for me as I term out and I would like to thank everyone in advance for always making it a productive one,” he said in his introduction.
While the county has seen an increase in revenue this year, about $57 million or 25%, based on the county’s own transient accommodation tax as well as real property value assessments, expenditures continue to go up, Kaneshiro warned.
“It appears this year that we did see an increase in revenue. But as we know that does not mean our operating costs or the need to provide the basic infrastructure for the island has decreased,” Kaneshiro said. “We are most likely going to see costs increase due to inflation added needs for repair and maintenance of our existing infrastructure, and another few rounds of collective bargaining increases for our union employees.”
This budget proposal is more than FY22’s proposed $243 million operating budget and $24.3 million CIP budget, and it’s built for improvements.
“As always, we as a county must also try to improve upon our services and infrastructure needs moving forward,” Kaneshiro said. “Most importantly, addressing the deferred maintenance for critical assets. As we pivot once again to refocus from our pandemic and disaster relief focus of recent years.”
Monday, the council got briefed on the county’s financial position with a revenues discussion with county Budget Administrator Ken Shimonishi.
“We continue to adhere to the elements of our long-term financial planning that we undertook several years ago,” Shimonishi said. “The budget submitted continues to adhere to the structurally balanced budget resolution where recurring expenditures should be covered by recurring revenues.”
The county’s reserve fund, which was tapped into throughout the pandemic, ended with $42.8 million at the end of FY21, about $6.4 million under the county’s 30% saving goals. However, in the ongoing FY22, projected KTAT revenues will make up for this in the future.
The proposed balanced budgets will place 30% of the last fiscal year’s general-fund revenues into restriction.
This budget does not anticipate any fee increases to residents, and no furloughs or layoffs for county employees.
Shimonishi pointed to aging infrastructure, the need to replace heavy-duty equipment and vehicles, maintenance of county-owned facilities and collective bargaining as what puts the most pressure on the budget’s flexibility.
Monday, the public will be invited inside council chambers for the first time since 2020, as the council continues departmental reviews. Up for review will be the county’s Department of Public Works, one of the largest departments on the county’s slate.
Public testimony will be accepted at the start of the meeting, beginning at 9 a.m. To view the meeting online, visit kauai.gov/webcast-meetings.
Departmental reviews are prescheduled, but if a department does not use all of its allocated time, the next group will immediately follow next. Decision-making is set for May 16 and May 17, if needed.
