we should bring the budget in finance committee meeting to order but those that wish to give testimony will have three minutes to share your thoughts with the committee assist you with your time with the lighting system green is to speak yellow means you have thirty seconds to conclude and read means you shall stop we should also ask comments from district offices if they have anyone in those areas wishing to provide testimony so at this type of way please turn off your phones members and audience we'd like to ask miss mad schieffer if you would please come up and share her thoughts with us this morning morning i'm here this morning to talk about something near and dear to your heart which is how to save a little money for the county and i think this is up painless way to save money i have in the last year become very familiar with think grants process for line item grants and what i have asked the clerk to pass out to you is the application for  line item grant and i want to take quickly go over what happens after this application is filled out which is about twenty four pages but it comes once the application is excepted if the mayor's budget includes it if you all change one penny of it the application has to be done over again has to be done so that all the numbers in the narratives that refer to the numbers  then there are additional documentation which i gave you on the front the supporting documents checks checklists all of those things have to be submitted every year you could see that there's quite a few things then there are reports which are four pages and the documentation to back up those quarterly reports i know missed by says the familiar with it with the grant process then during the year there is a site visit from the grants people to take a look at like the physical time sheets even though they've been provided in the quarterly reports so mike my concern and let me say this first  very important the taxpayer dollars be carefully protected and i don't have a problem with that i just think this goes overboard for grants small grants and what it does is is so burdensome burdensome to the small organization that they have to resort to hiring someone to doing this taking dollars away from their their their project so i have a couple of suggestions if if you would indulge me i would suggest that the that there be a shorter procedure and forms for single purpose use grants under one hundred thousand dollars so for instance the hon a dialysis grant is used for strictly for salaries and yet they need to go through all of these hoops even though that use doesn't change  the second thing is that a review is needed for there is a review and an audit that is required on these small grants every three years which costs five hundred dollars you say well five hundred dollars in the scheme of things especially looking at the dollars a dollar amounts to you're dealing with with the budget isn't anything but when it said thirty or forty thousand dollars grant it's a lot of money and the problem is there's nobody now on the island who will do audits so it has to go to honolulu and last year we waited four months for the auditor to provide the audit freezing our funds so whether it could be a letter of certification from an accountant or some other way to ensure that there is protection there that the third thing would be there as the systems apparently don't talk to each other so the grants are when the at the end of the year when the county does its audit it has to be done by hand because the to use financial systems to talk to each other and i think there would be a substantial savings if you weren't paying an auditor to hand audit all of that's great it's and and last but certainly not least it would be interesting for you all to find out how much is spent for grants administration for writing these things how much is spent and you can't break it out in that if you look at just the general application because the accounting is in there so in the case of the dialysis house they have an account and the accountant does the payroll the accountant does pays all the bills and and so there is you have you would have to ask that there be a breakout so you could get an idea of what grants pots what it cost organizations to do this instead of do the job that they want to do which is things that were difficult and time consuming and expensive in as short amount of time really short response can you tell us what would be the way that a grant might be able to do it without costing both the county and well i think the form just is if you look at the form it just needs to be shorter and it doesn't need to ask a maid questions when th goal is the same year to year there it almost should be like a rubber stamp where you could say our goal is the same as it was last year you obviously can't do that with a grant that covers a lot of different issues or changes yearly they need to do the longer form to protect the taxpayer dollars shorter forms less than one hundred thousand it just says it makes it makes sense plus it puts i hate to say it but it puts some grants people people who write these things out of business and maybe that's a good thing because then it goes to the intent of the grant instead of to the and i wrote the grant i finished the grant it was exasperating process and in the end i was told well if i had just justified the barges on left and right when it got to that i said i'm done so it's different now there is a new grants manager and and i have had nothing but help from her and i really appreciate that but it's time for a change here it's time for there to be a task force or someone to look at this so because the intent you all are that you do with the slide out of grants is to get the source and solve the problem that money can solve with it has to be spent on a lot of administration it's not good thank you very much a similar any this morning next ye every week with a sixth through eighth graders at charter school and our work is always on or near the coastal dunes in key hay we work with the students to remove invasive plant species and generally pair and maintain our dunes work is only possible if we have the u s grant agent approved both the site and scope of the work for the various areas we are working at our group works through the park supervisor and but when the work is on the dunes the supervisor always wants approval from the u h c grant for any work on those protected areas the secret agent periodical checks in at the work sites and since the position is through maui county we have a very good working relationship with the agent and an opportunity to meet at the site whenever it is necessary our students seem to really enjoy this work and their opportunity to g back to our community we have a large graphic card that has been developed by the u s grant that depicts a typical sand dune and teaches the students about what it should look like we and our students have learned through the grant why dunes are important and how they work to protect our shoreline and storms and we pass that information along to the residents of maui our youth and our visitors  possible for us to do this work on the dunes and on our local parks and it's been very fruitful for all i thank you for your time and your consideration on this thank you any questions for the a problem anyone would like to share testimony this morning returned gives an opportunity to present to this eight hundred fifty page book in front of you it's a it's an important factor you know one of the things that while you may not agree with all the numbers in this book the presentation of the information in here my staff and i take a lot of pride in working on and presenting to you the information hopefully better information to help you make better decision that's really the intent of this document the cover page is interesting in itself if you guys haven't taken a look at that main picture on that is part of that thirty plus acres that was something we don't like to do but we oftentimes have to do it the first one left is and remember vice is very aware of these kind of things emergency water department repairs and so we're trying to upgrade our system to prevent those things and find those leak detection items and second picture there is something we've been doing a lot more recently replacing life guard towers and other parts facilities and so you see that tower specifically is a whole heap of beach park  the third picture is something new i had to actually ask specifically what that was i guess but my guess was right but i want to be specific this is the slurry seal that's applied by our own  those are the things that we've highlighted in this budget document along with the main budget document was a synopsis that was presented for your and your constituents our constituents information provided  in the district meetings so that when people come to the district meetings they're able to get a brief you know not the whole eight hundred fifty pages but a brief synopsis of what are document as we also provided you and anybody who asks d s of this budget document as well as the ordinances and they're all available on our web site as well if you go to the county dot gov forward slash budget you can get access to all of the documents that we're looking at on a regular basis so that  you know the public is aware of those things too in the electronic version of the document i did some enhanced our table of contents as the next thing in our book here and on line there are hyperlinks from each of the areas in the table budget presentation award this is something that is presented by the government finance officers association of united states and canada this association reviews budget documents and if we present them they have to meet certain criteria i'm also a budget reviewer too so i review the other jurisdictions budget documents and interesting to see different the way that certain municipalities present their budget but we have received this award this is the twenty second year that we receive this award and we're very careful and proud of being able to receive this and it's something that some of this document is  put together based on their criteria based on what the government finance office association is saying is it is a good way to present a budget to not only for the legislators to make decisions on but also for the public as a document that that shows what it is that we're doing tries to prevent present that page nine is we started this a few years ago readers guided to the budget and this provides some detailed information about how to read the budget we have descriptions in there of different things how we present continuation budget changes what each of those items mean as we discussed a little bit last week on page ten i do want to clarify one thing about the inflationary schedules when we made these calculations in august on what was available to us the actual for two thousand and fourteen some of them  transfers out transfers in each of these are described in the budget document as well going on is just some examples of the different tables that are in the document and how to read those tables to what we're looking at in the document some highlighted items in there we have a directory of county officials both the administration and council and the structure there we also have twenty eight  sometimes different areas where you know they may have a city manager or different things like that but this is the structure of our county and how that's laid out as well as the boards and commissions that are provided advisory level or decision making levels to assist the departments in getting their communities their job done next section is just the demographic information that we've collected from the data book on the basic i dollars you know seven hundred million dollars budget presentation you know that that is basically the county funds budget but as shown in page thirty five there there are two other grant revenue is money that's coming from outside of the county and getting our job done through the federal grants as well as some state grants so the total budget that we're looking at for fiscal two thousand and sixteen including those two resources they go into providing the services to the county so this organization budget organizational chart shows you by fund the different departments and how much they're getting they're requesting and in expenditures for those different areas charts on page thirty six and thirty seven describe all of the sources of the funds by major fund type you can   you can look in detail at the chart on figure nine that shows that our real property tax is the majority of revenue for county sources two hundred sixty six point four page thirty seven is the expenditures by character type and we have a description of the character type at the end of the section but salaries and wages operations expenditures capital projects you can page thirty nine different charts that describe the functional areas and you can see here public safety is the largest when it comes to employee  financial policies these are start the section that really drives how we make decisions in what we do there is information about the budgetary process the calendar on how we  prepared and presented in your deliberations on the fiscal year two thousand and sixteen budget all the way to implementation of the fiscal year starting on july first that's forty seven budgetary planning other municipalities and states and the federal government don't have that restriction but we're very blessed to be able to have that restriction in our in our state in our county so that we don't get into difficult deficits in our receive on a quarterly basis which describe the performance measures provide you with you know the report on how the departments are doing a board according to their goals that they've set for the year requested an additional appropriation into this year the auditors look at that as a significant source of just in case money really what that emergency fund is for to provide some stability we don't accrued accruals basically we operate in a cash basis throughout the year and at the end of the year the finance department does the accruals and so we don't on a regular basis have a report of  we have governmental funds and proprietary funds governmental funds are pretty much everything general fund special funds other than the enterprise funds that we have which are the water fund and the  as a description mr chair members page fifty two fifty three and fifty four of the different funds that we have we did get into a little bit of brief discussion on the fiduciary funds or the trust in agency accounts last seven we have the revenue expenditure summary and this is where you see you have a four year comparison table and figure twenty the revenue expenditures of the county this is a consolidated schedule of chart that goes pacifically of the general fund the general fund areas and receipts is here and then fifty nine is the special funds these are our special revenue funds that are assigned for specific purposes by highway liquor solid waste waste water and golf and water supply are sixty is the enterprise funds and so you can see the revenues and expenditure charts those sixty one again is the operating expenditure schedule by major funds so you can see here by the general first the top of the page is the general fund departments and areas where you can see it has a breakdown of the functional area which we described before and then the actual department that means that functional areas so recreation of course is just parks recreation department but general government section which is the largest  in there includes a number of different departments corporation environmental management and finance management office the mayor personal services and planning and public works all have general government functions within those departments and how we streets and transportation is our transportation department out of the general fund area and you'll see out of the highway fund in that functional areas well of course legislative fund balances are page sixty three this information is provided to use of that you can get an idea of basically that it's a it's a balanced budget by fund we have in the beginning fun balance transfer it's estimated revenues if we do have a fund balance at the end of the year that is carry over to the next year and so you can see those different areas estimated revenues estimated expenditures are sixty seven is the carry over savings analysis this is kind of a unique term that is used in the state of hawaii and through the different counties not very well used in other jurisdictions in our community  seeing that year to year change is positive but kind of slowing down on a mr basically saying that we're looking for slow growth wish from a government perspective has its positives and negatives slow growth is something that's more sustainable we don't necessarily like to see these huge increases in values or increases   this one is enforced and taxed and of course by the state collected and they provide us with an amount that used to be twenty two point eight percent of forty four point eight percent of the total revenue received very well aware that the state legislature has kept that amount for two thousand and fifteen and sixteen fiscal years the cap was raised from ninety three million dollars two hundred three million dollars but the current law is that it will go back to a ninety three million dollars cap in two thousand and seventeen and beyond there are certain bills the state legislature right now but the receive from the state for this there is currently a county state functions working group that was created by the state legislature and so on and fourteen and the mayor has appointed working in individual groups right now on two basic functions one is to dirt term and what public services are provided by the county and what public services are provided by the state of this calendar year for the next session so everybody's kind of waiting for that report to come out before any changes so rose revenue for this year fiscal year two thousand and sixteen which will be the actual revenue public service company which is a utility company it's in lieu of property tax and it's one point eight five percent of the gross income and we're expecting to receive about nine point one million dollars  sixteen slight increase point seven percent increase from two thousand and fifteen fund is made up to fuel taxes one of  main collection points tax is estimated to contribute about eleven point eight percent twenty million dollars we are proposing a two cent per gallon increase to gasoline and diesel as well as  implementing a tax on bio diesel for the first time in our community and i'm sure we're going to get into major discussions about these we did have a discussion of rates and fees on wednesday and can provide more details of that public increase in our sewer system for quite a while and we do have increased cost of course majority of which are made up in our salaries and wages and benefits and other costs and  thank you very much chair and thank you mr buzz for the overview of course none of the information i think we're hearing today is something we haven't heard before thank you you know we've we've read the overview and we've had the opportunity to talk about much of the proposed things that you mentioned today i think the thing that i'd like to hear a little bit more from you is you know there seems to be a concern about of spending too much and maybe being overly optimistic in terms of being able to pay for these debts i'd like to talk a little bit more about that i know you must have met with but bond traders are people who take a big overview of the county finances and can comment meat the idea of of if we're spending too much or too little for that matter is something that i guess from a well members have is something that it's very critical something that is a it has to be a decision that's made from the experiences the knowledge that you have you know the mayor has certain knowledge is of being you know in an elected office for over twenty years and you know in a different things that he meets with the departments and the community  he hears their concerns and their needs and and asked to present to you about his budget so yes to make the choices of whether or not to increase or decrease revenues to to meet those needs you know we have a lot of requirements you know things that that are mandatory that we have to pay things like collective bargaining you know increases and fringe benefit costs and different things like that that  services is something we're required to pay but it's a little bit more variable and manageable because it's something that we decide as a council decide on how much debt to incur and when we get into the capital  that is by state requirement you know i believe when i was first created there was a need to provide some subsidy for that industry  so that we could get going and get people used to using bio diesel but you know bio diesel is well used now the capacity that they have to actually create that fuel  m thank you very much i was interested in that particularly because of you know the desire to support renewable energy but also about we were hearing that our food is not totally bio diesel and me for now thank you thank you the opening narrative they're saying that unassigned fun balances an emergency fund or part of good sound financial position with  the second part of the un reserve fund balance with unassigned fund balance comes from revenue that we received over what we budgeted so if we had budgeted two hundred million dollars for a property tax and we so you know we try to be conservative in the in our fuel tax revenues you know depending on on the usage it's something that could be lower than we definitely don't want to ever be have revenues lower than projected  mean in a perfect world we'd be down to the last penny and everything would be spent the way we planned it and everything rolls right but obviously that's not quite how it comes about and generally the  s ok and you know you're mentioning we were mentioning carry over savings it's my understanding having listened to the bond traders that never said that too much there's ever too much in fact some of the municipalities in california that have aaa ratings are because they have their fun balance of over one hundred percent of their their budget and that's that's why they have such a high rating to overcome our deficits which are generally the lack of diversity in our economic revenue which you know and the other deficit that we have in our bond rating is the state and unfunded liabilities which you know we're working on very hard would could be overcome by more carry over you have savings to pay for their debt you know they're issuing debt they're there they're giving us a loan and you know as a normal bank they're not going to give loans to people who unfortunately that most of the time they don't they don't they give loans to only people who don't really need them because they have savings in the bank because they have assets and equity and that's something that you know valuated just like just like a  the rating presentation to their evaluation of our rating was that how important that is ok i guess this is more of a philosophy question for you and potentially a chair although carry over savings are good certainly not one hundred percent of our budget they are still in essence surplus being there there is some balance that needs to be made and that's that is definitely a decision a policy decision that you guys make that that there's there is a balance for sure between how much where taxing our people based on the needs of our community and and how much we need to be prudent financially and each one of those decisions that is made  in those very well to make that balance and try to provide the best information i have the best resources to make those decisions and that's something affected that is really out of my hands but it's something that's important to our community to understand that the resources they're providing to this government are coming back to them in the services in the you know in the police in all the different factors you know and to my job in our job as a ministration is to work with the financial resources that are provided to us in the best way possible so that we  can provide the services most efficiently to the community and you know the they skipped over the vision of the mayor presented a number of years ago but if efficient effective or responsive government is is really what tribes especially my office but what we what drives our our government to provide those resources it's a balance of you know as you go out to the community and you hear from the from the presidents that say i want this service please fund this organization i want my roads fixed and the vailable resources that are prudent to charge our community there's definitely a lot of studies that been done on what what the right price of government is but when it comes down to it it's it's really each community's decision to make and how they decide what the right size of government the right cost government ok thank you joe that it just brings you know a point up is that if you if you tax too much and have too much of carry over savings yeah you might get a better bond rating but that's still too much of the citizens money but if you tax too little the cost of borrowing money costs more so ultimately it's going to cost more so it's one of those balances that we have to really maintain and i think with the chart once that came down from the hundred million i think the council's been pretty good at keeping the carry over savings at a reasonable amount so  he has worked it is proven to serve this county well but times are changing and for your chair i don't expect the council to be fifteen in any amendments to do that and recognition of additional carry over savings so my staff is continuing to analyze this with department of finance for the number less negative but that's really what the negatives for the gulf fund its enterprise fund so the carry over savings the fund balance can be negative because of  two point two million dollars in rough numbers in fund balance according to the kaffir they had two point one million dollars in incumbrances so in our analysis that we provided working with the department of finance to confirm how that's actually analyzed thank you thank you thank you very much mr white thank you i share mr couch concerned about the carry over savings because i think one of the challenges of the budget director and this committee face is that and we've heard from others and i won't name who that are our budgeting practices has reduced the carry over savings well carry over savings should be from savings not from over budgeting so i'm i'm a little concerned  if we feel that we need over budget in order to end up with a carryover savings i do feel that propre place to put it is in the emergency fund and we may i don't recall whether the emergency fund is as well so should financial emergency be declared by the mayor and confirmed by this council and with this supermajority of this council's action could provide funding for that service  i would if that's going to be a future practice and i'd like probably my recommendation to council would be to have charter minutes proposed so that we do  job is to provide a balanced budget to budget for carry over savings those carry over saving should be from either cost reduction or revenue bose fairly simple just on the same lines as mr caution mr white if if there is i guess the proposal of creating an emergency fund and the language of i guess the purpose of that fine with the language incorporated for the purposes require that fund to be used for that specific purpose and i'm saying that because when i looking at the bicycle fund this is kind of something that you're working on for a while the bicycle fund specifically says that the revenues generated for that find is from the bicycle licenses and then it goes on to say that the revenues or the fund will be used for the bicycle way construction and maintenance and so when i look at what's in there it's like six hundred fifty three dollars or three hundred dollars and so  at the highway find and it specifically says the revenue from there is generated from the fuel tax the franchise tax a public transit faeries vehicle weight taxes and those funds are are used for county roadways streetlights public transit storm drain and bridges and bridges so is it possible that the bike fund can can take from the highway fund or transfer funding from one fund to the other to i know basically build bikeways in me because i don't think six hundred dollars adequate there may be a balance left over in the fund because the project had not gone through so there was there's some savings in that but in general yes we do provide a supplemental transfer from the highway fund to the to the bikeway fund just you know for everybody's understanding that the highway funds dwindling down as well and that's why we're proposing the fuel tax and a tax it's not an unlimited resource but it's something that with us so your approach mr chair there's always going to be some kind of interface on revenue transfers stuff that waste waste water has to dump  of of general public benefit from the solid waste you know operations things that they do to you know keep keep us clean keep the roads clean keep you know if the landfill is free to residents then you know there's a perception that then residents will make that initiate effort to actually go to the landfill and dump versus dumping in the year because that is the general philosophy we you know special funds are created and utilized for those special purposes in general because we haven't really had a  final discussion on it and a policy statement by council we are operating under the intent that those special funds should be self sufficient or as much self sufficient as they can be again that's why we're proposing an to some of the discussions that have been had in water resources committee and that there may be some philosophical differences in there as well of keeping the water supply fund self sufficient you know there there can always be seen some areas or or there can be seen not always but they can be seen some areas of of general benefit to the community and that's what the general fund is for those taxes which we standpoint we would like to see the solid waste fund more self sufficient that's why we're proposing the rate increases we want to continue see the highway fund to be self sufficient as well as waste water and  term quite appropriate upon receiving the money so it doesn't really come back it will be apple since we already appropriated before we got the cash for a specific purpose but i think it's about time we review it to me i may recommend that we sunset and to have the departments come in it's really just a fight the need of a real specific revolving fun whether it's serving its purpose or  sixteen budget for the solid waste operations had started collecting construction and demolition materials waste from the landfill that had closed during the deliberations last week monday when i was watching from home the director mentioned that they're no longer taking this and that was the first time that i had heard of that and that's significant amount of revenue i had a look at up again it was about two million dollars in revenue that we were expecting from that that construct the c n d waste into the landfill that it's no longer going to come revenue and there also be corresponding reductions in operational costs because of that operation terminated thank you for that mr bo nine of these increases are not necessarily increases they are movements from either the legislative branch or the mayor's office to departments where because they're  so by proposing the move of the budget office to the department of finance and also the legislative attorneys from the office of council services to corporation council that is nine of those others as net really is about forty one increases to actual bodies in our in our county the charts and tables going on the annual increases or decreases in the tables in the bottom eighty detailed by department in changes on page eighty one shows you all of the proposed changes in and review the current staffing levels and in different areas and a number of reorganization have happened or have been proposed in a currently happening in the different departments to  because he felt that some of these some of the requested positions were not appropriate for management to support you know what you're seeing here is ones that the that the mayor has  reviewed and determined that these are a need in our community and a need in our department be able to fulfill the desires of our community on to best support them with could be either public safety issue or a deficiency and sometimes there's there's efficiencies they're created by more staffing it's hard to imagine but that does happen occasionally as well that an additional staff person in the in the right area can can help create significant efficiencies one of them proposed in the department of management is additional civil engineer for for the c i p section and that will help assist our departments in in saving significant amount of money in future projects because they have a better overview of the capital projects and needs and can assist in in efficiency measures in that area so so while it may be an extra body extra staffing salaries french benefit costs sometimes  included here they're included if and personnel was added throughout the year by council budget amendment approved then they would be actually still shown as an expansion for so that's the starting point for me  seven percent that would be somewhere between ninety and one hundred ten positions but each year we see not a decrease in personnel but an increase it's concerning because we all know i just wish there was a little more of a commitment to pull the people's feet to the fire and and getting the kinds of efficiencies that kind of a focus can generate thank you y this starts the discussion of a long range financial plan this is kind of an overview of our philosophy on long term financial planning sets you know the priorities that we have per year very slow growth as far as the number of parcels that we capture into our property tax assessment the orange line is the grossed assessed value you'll see that increase them pretty much to what we project point three five percent per year of course you know this year with the increase thirteen and a half or three to four percent so there's a you know variables to that  year by year but this is the historical data that's provided and then for figure fifty nine because the tax revenue is a calculation based on the value and the rate we provide this to you as well you can see that the council in its deliberations over the years has kind of even doubt that huge increase specially in the recent recession airy  the revenue that we've received over these past almost thirty years and what we project into the future is actually less than the value increase so  are being prudent in the big picture of things and not just keeping our our rates high but when you know reducing them when and when appropriate and possible and you'll see that  our revenue is projected to annually increase around two point three percent that's real property tax is figure sixty you'll see we've had some fluctuations in the past but because of the state legislature have that capped out this year and because the current law is that we have a cap for the future that's what we project in there at the back down to twenty one point three million dollars for future for future years public service company tax you'll see figure sixty one again because of the recession some some drastic changes in there but on average you'll see an increase of revenue approximately point one percent we're projecting a point seven percent for this upcoming fiscal year but this is forecast so for these other than the real property tax the rest of these we did a six year forecast similar to  analysis on cafe standards and number of vehicles and all of that as well as the actual revenues and analysis that i did we actually came out to the exact same amount for fuel tax of a negative point three percent revenue projection forecasted for the next six years franchise tax as projecting fairly flat at this point even though we've had some fluctuations based on the  set so this is a combination chart where you see you know that the revenue is actual revenues and the budgetary amounts we had a little bit higher for a few years but we've kind of aligned them actual revenues have pretty much aligned with the the budget but factor once in a while you'll see a little bit of and actual revenue where the residential trash collection is pretty spot on because we don't there the increase in those two fees are what bring the two thousand and sixteen projected budget amount there and then we go back to an  annual increase of about three percent that we've seen forecasts of for the past if course you know that's where comes to the full decision of you know what we do supplemental transforms for and then the last one i did was sixty six the water service fees and you'll see there we actually had some areas sometimes where the actual revenues were less than what was budgeted it was still enough sufficient things like you know i mean i guess we were informed of the mayor's interest in becoming an electrical utility so that means in the future the public service tax wouldn't be their revenue source is that a good understanding if we if it does move forward to an actual operation of the county mr chide have to definitely do some research on that but even if it was a revenue source it would be a revenue source generated by our own customers i suppose it's still in one pocket out the other kind of situation the public the franchise tax and the public service company tax we all pay in our bills  now it's something that that is in our utility bills currently so we as customers are paying into the it is so if if the county did take over the utility i would assume that the customers would still be paying that into us and hopefully receiving it is as the the general funder i would find on the other side but definitely would need a lot more analysis you definitely got to sell me you know program that they have and it works for them and it works for the community because there's options for communities it's true to choose you want to go if you want to go with your local utility and of course the funds that get garnered through it go back into its own minister pallet utility company and it just you know so it feeds itself it pays itself it it improves its own self and what have you so it seems to be staff and your team and you coming back and being with us throughout this process thank you one area and you can choose how you want to respond mr bush very clear through an ordinance or other means of how this is going to be done in the future i would love to have twenty one more million dollars in cash with this current u s requests and forecasts that that i prepared for this document are from major funding sources there are a significant amount of minor funding sources that make up the proposed budget revenue  can find maybe legislative remedies or they'd be at the county or state level on what type of insurance commercial paper or whatever it may be you know we already went through the fiasco with student  kind of the third factor there you know understanding that it is very hard earned revenue that taxpayers want us to make sure that we invest in properly but i believe especially with the pretty significant this year we're proposing a total capital program of one hundred ninety seven point three million dollars this is includes money that is from special funs grant adopted budget broken down by departments on the figure seventy and page ninety four you'll see mental management has thirty eight point eight million dollars in proposed projects the finance department is eight point five million dollars which a so that's a very significant portion to our increase in the capital project for this year parks and recreation is eleven and a half million dollars police seven hundred thousand public works sixty three point and the largest individual district of fifty two point six million dollars and again thirty million of that is that the new facility next door county wide you'll see is a fifty nine million dollars and that's for a lot of the are projecting about two million dollars they think that private monies that we're going to be receiving park assessments for the west side which pretty much has the only parks usman money left over four hundred thousand sewer fund cash is nine from the clean drinking water act and safe drinking water act revolving funds that are set up at the state level we're projecting forty two point eight million dollars and those biggest one of that is the treatment plant fifteen million dollars for central my system water supply restricted funds eight hundred thousand dollars is proposed to be used this year and under strict did funds is eleven point one million dollars in cash for those different fund types and then project type breakdown is on page ninety seven in figure seventy five you can see drainage government so i won't read through all of those but you get the idea six your capital budget summaries we're sixteen with more brief analysis done on the six year projects but you can see over the years you know we are expecting some increases in the amount of capital projects that we need to do to maintain one hundred starts the capital budget policy and capital budget process scene you can go through and see here how we get to this proposed capital budget the financing and funding sources start and then what the impact of the proposed debt both the s r f loans and the bond issuance would have on that that service and you can see that that proposed debt is significant five point four million dollars of new issuance from this year for the eighty million dollars with the bond issuance and two point three million dollar and then below that is the actual graphical representation of those numbers you can see the blue chart is our current debt and the orange is the proposed debt and its impact on our that service  know operating of county funds were desired not to exceed ten percent of county fund operating expenditures and for fiscal year two thousand and sixteen the proposed rate is actually only at seven point five percent debt service to operating expenditure we definitely want to that's one of the major factors that for a budget office we look at making sure that we're not spending a significant amount of money on that at the state law requires that no more than fifteen percent are a property tax of value is issued in debt and kind of ridiculous for our for our assessed value of our county  that would be equivalent to six point one seven billion dollars of debt that we could theoretically not violate the state law but the country's current debt is two hundred eighty three point two million dollars which is point seven one percent of that ratio way under this kind of something we don't track too much again because it's we're never going to get to six billion dollars that and the net bonded debt per capita this is has been twenty five hundred dollars our current debt as of june thirtieth two annually the debt service for until until maturity of those bonds that's the end of the capital budget and debt you know that every year we do additional projects have you or could you put together the same spreadsheet with the you know taking into consideration the last twenty years of of bonding issues and incorporating that into the next twenty say we're going to use at least the same bonding we have for the last twenty detailed analysis of the six year capital plan write you know what it is that that our partners are proposing and what we most likely will have to issue bonds fo appreciate the comments and i'll try to do that in the future is something important to analyze i would caution you to use the six year projected capital project because that list has a significant amount of flux  look this was on the six year plan and this road repair and then it disappeared without any explanation so i'm just curious how that that happens and how you track something that was on there for the next six years and if you even decide not to do anything it still should be at least noted so that people don't say where to go possibility i don't know you might have a lot of stuff t the other thing you mentioned you're getting a new system it would be nice to see since you talk about it on i think page one hundred three about the mouth plan and the general plan considerations put in there it might be nice to show each c r p project what part you know what policy an action or whatever and it's only if it's numbers it's you know action six point three or fourteen point whatever that that you're addressing so that we can see that yes you're looking at the general plan and yes this takes off one of the actions yet it's not on the project sheets but we to push up the deadline on appeals and that is my main reason to push up the tax appeals is that it doesn't serve this committee or the council so well by not having it part of the numbers being accurately reflected in certification so i think if we move the bid lame prior to certification once the rector gives us that sort of free number we please mr chair members on page two hundred fifty nine of budget in the department of finance is becoming like cost program it would cost program is a number of appropriations for this fiscal year that are proposed into those special fund but as far as friends benefit costs you can see here now mr chair there friends benefit cost the top of the table on page two fifty nine show a significant increase one thousand point one million dollars but about fifteen million of that is the other post employment benefits that we've been paying for out of a transfer to the special fund and then paying out of the special fund to the state and so what i have proposed in the fiscal year two thousand and sixteen budget is that we other day so i'm open to any changes that the committee would like to see in that area friends benefit reimbursements are reimbursements that we receive from other special funds back into the general fund at the end insurance program self insurance the corporation and i work together on this with the risk management support and he has proposed an increase of  r million dollars to the self insurance fund to bring it up to ten million dollars and dissipating some possible items and as he reviews those with your  revenues get transferred into these funds by charter so the council deems it appropriate to change the republican x revenue then those numbers will change as well the general cost items you'll see a slight increase rentals and phone and and postage thank you emergency fund we've had some discussion on the floor this morning already i'm proposing about a one point six million dollar increase to a five million dollar transfer to the emergency fund so that we can continue to get our emergency fund up to the mayor has proposed a directive he wants to see it twenty at the bottom of page sixty sixty three you'll see that the actual workers compensation costs for thirteen and fourteen were significantly higher than what was budgeted this this this correct so those and i believe that there was an analysis provided by the risk manager to the committee as well that kind of glanced at but there was some  for general employees as well as for police and fire so this increase of four point four million dollars is based on two factors one is the increased salaries and wages from collective bargaining as well  so i was not given a direction to provide any additional salary just once in here just in case i share we want to make sure that the council has every a have presented to me a need for possibly additional appropriations so i forward that request is this something that the committee has t reviewing the executive session if you would like further detail i would suppose bring the corporation counsel up here and have him present to you most likely that would be require an about additional support for legacy system please i'd be very happy to hand the microphone over to our deputy director of finance walker who is here and he can describe these general cost items  thank you mr walker please yes thank you secure committee members as as the budget director mentioned earlier a few minutes ago we did come before this body i believe in february asking for  budget amendment increases to our fifteen budget to more accurately reflect the costs increase costs in both rentals telephone and postage and basically what you see before you is is the same amount so we requested to supplement our fifteen budget so it's just continuing on under the assumption you're going all the things are going to get formally approved it's just a it would be done in november and that they were hoping that it could be done maybe by july of this year was latest information i had would you know if we are still on multiple systems or on just one i believe run multiple i hope you hard on the contractors for you if you're not performing yes we get all this of the facilities that they've been out of this account please excuse me to i'm sorry i didn't get the question i apologize i asked if funds are being used from this account to pay for rent th it yes mr chair thank you for the opportunity to provide some explanation as i mentioned to you in an earlier appearance and i forget which committee it was we hope to complete  migration off the legacy fund system to a new system by july perhaps august of this year and study we had done by consulting that helped us with the section of the system showed that  the savings projected from this conversion would really start showing up after the completion of the project so right now we're still parked on the old legacy and the system part on the new system the legacy system in the building here also serves some connecting lines to facilities in south mowing my smile and what have you so we can't shut it down here without cutting off those offices until they have completely insulation a new system so this summer we should be finished with that and we should be able to demonstrate that the savings are going to be showing up  course have to state wide nine one one system that's completely separate phone system thank you for that responses we appreciate it any other questions from me there for you during this m migration by july this budget starts in july so it's if we're going from three hundred eighty six thousand dollar expense a newly to four hundred thirty six thousand i sort of an indication the police department has switched over completely so we are there savings that are generated by the police being on a separate system or as us all based on the  support and maintenance of the central computer system also brought to key a police system on line which required a number of lines that had never been necessary to provide additional capacity and what have you so expansion you know kind of models to picture rescheduling your committee's work to allow that to happen and look forward to continuing deliberations and we missed four actual days of deliberations but it seemed like i missed the world well you're lucky you had drugs