testimony had this portion of the meeting and anyone wishing to great testimony will be provided an opportunity by posting a ruse of this committee every individual will have three minutes to speak on the item and we only have one item which is b f one a proposed fiscal year two thousand and seventeen budget for the county of maui and we should give you three minutes to share your thoughts with us and we shall also be open to receive written come to simonian communications sent to the committee on this i don't so stating that i'm going to this committee secretary if there is any request for the public testimony for two days she has indicated there is not within the chamber we shall ask our district offices if there is anyone wishing to provide testimony miss lowell in holland is there anyone wishing to provide  members thank you ladies budget and the required messages he also transmitted six proposed bills which if in the act it would take effect on july first two thousand and sixteen which is the start of the fiscal year america to enter into into intergovernmental agreements for twenty four point seven million dollars in loans to finance specified voice water projects for authorized america to enter into intergovernmental agreements for seventeen point five million dollars dollars in loans to finance specified drinking water projects authorities the issuance of fifty eight point three nine two million dollars  bonds for various capital improvement projects and six reauthorize the use of six point one zero three million dollars in lapse bond proceeds for specified projects america has also  transmitted a proposed bill to amend chapter twelve point two four eight of them by we county code relating to the allocation of responsibilities for county trees and landscape plantings and the requirement of a county arbor budget and finance committee his tasks by charter and other governing documents would reviewing the most proposal and making fiscally responsible recommendations to the full council for its final adoption currently you chair has this committee planning to schedule twenty one meetings in the chamber to review and deliberate on the proposed budget with their property part ments as well as to decide on recommendations to the council in addition the committee has scheduled eight district meetings to be held in the evening stroll down the river in the month of april these twenty nine meetings will provide ample opportunities to hear for us to hear from the public  spending priorities and on their tolerance for generating and appropriating the seven hundred eleven point five million dollars or fourteen point six percent increase over the fiscal year two thousand and sixteen budget  as proposed by them the council will also hold public hearings as required by law and schedule council meetings to accommodate to required readings of the proposed budget bills the county charter requires the council to pass the budget document by june tenth since that day is a holiday the council must act by thursday june  so let me give you an overview of the process as we begin our review members this is how you chair plans to approach the committee's game plan i intend to review the operating budget for each department in its entirety first reviewing the department's a b and c accounts grants and grant revenue if any is presented the only exception to the chair into suppurating is for the office of economic development grants which will be scheduled separately from the o e c d review will review the capital program budget separately from the operations budget and i plan to schedule these discussion on keppra improvements projects for april eleven twelve fourteen and twenty one i've also start a site april thirteenth through the the changes to appendix b rates and fees is main tension to schedule each department would propose changes to rates and fees except for changes to real property tax rates to discuss the basis for their proposed changes pursuant to section three point four eight point one three five of them our county code but there after a finance must submit are now before april nineteenth the certification of real property tax i reserve april twenty for a discussion on the real property tax and special purpose revenues for the schedule for each department and office which have been distributed by our staff via email i will keep us on policy or mr guzman's requirements under litigation and settlements under the comedia of the whole so that if those unique situation arises i am committed to working with those committee chairs to see how we can  move forward the business of the council and make those appropriate adjustments  me the schedule of departments is also posted on the council's website and can be found at my we county dot us back slash two zero one seven budget backslash as you are those who want to follow through the website you can do so you and know that i have asked the committee to plan our work india up to about ten or eleven at night on dates the members do not have a district meeting no public hearing to attend in those days your chair is planning to have your midday break from twelve to one thirty in your evening break from five thirty to six thirty secs what they call questions yes during the open meeting to follow up and compile them if you have additional through and be directed through the committee and its staff  i don't need to remind you members you are all veteran members incumbents that are aware that there is a clock ticking to evaluate the merits proposed budget therefore it's imperative that we start our meetings on time would tend to be prepared for that these discussions and make the most efficient use of not only into committees thame but your time as well if you miss a meeting i would ask you and your staff to work together with the comm staff since it will be your responsibility to follow up on those discussions and we're meeting materials as we go through the budget for primarily to the program budget booklet and supplement discussions  documents provided to you from the staff but also use the reverse another proposal appendix b relating to rates in fees that is being provided in the rams or format which highlights the merits proposed changes well it's already currently underway but i'll have something ready for you to be review i would encourage each member to take notes of the discussion and you have if you have  sugar caffeine and have the things that is not so very healthy to people like us so i just give one comment that supports healthy food choices  understand will be here a long many hours you will need your energy supplements and i understand that some will take a quick break so accordingly for you as well as the staff requirements and also allow to be part means ample time to be able this morning we are happy to welcome our budget director mr sandeep boss who will be giving us our word opening comments as well as the introduction to the before we enter into the beginning of the review of the department of finance which is scheduled for later but in this day said this time mr pos thank you for your presence and we look forward to your comments taking  for your opening comments this morning very apropos to the start of this budget session it's a very important you know this this council and one of the number one responsibilities that they have is developing  finalizing a budget that will be sufficient for this county to provide services and infrastructure required to meet the needs of our community and i appreciate the diligence of the committee members in making sure follow along you have your nine hundred twenty page document in front of you some of them have it electronically on there will probably it's but for the viewing audience as well the public can see where we are we're at and also follow along which page number we're at as well joe johns on this mr victory no more quickly and i want to thank you and budget director for doing this because for years people don't know what we're talking about they really can't see it we are talking about this just in matters of sort of subject matters and they have no clue i mean this will be a be massive i just we hope to see one day when that one can go up there so that no matter where you see this chamber you can see very clearly but thank you cheer l allowing this i think it's a big step in the right direction and our community to be as best informed as possible mr pickering you know so thank you for that comment before mr burroughs continues again we have a christmas fun you're going to give you my fifty dollars now and then i don't have to wor those in the audience that are diligently watching us whether it's sitting here or on t v the full budget document is available forward slash budget you can look at there's a combined version of this p file that has all the pages that we're dealing with as well as all the ordinances that include the rates and fees and other aspects of the fiscal year two thousand and seventeen proposed budget so mr chair the cover of our budget document is  one that brings up emotions if you look at it it is a picture that will probably no longer be in existence in the future  this picture was taken by ryan pirro one of our of information officers and it is a picture of of the cane fields looking down into the central valley towards the mill and it's something that  has been you know stallworth of our community for the last hundred fifty years and and it is with regret that we see it slowly disappearing but it is with hope that we see the future of maui in this area especially if we go into the document there's a description of the cover there as well as a list of my staff and i that helped prepare this document our table of contents is a part of our document that helps the readers to understand what sections to go to the electronic version of it has links where you can click on to be able to access direct sections of the document itself pretty comprehensive table of contents you can see through there there's also a list of figures of the different figures that we use with the charts or tables are listed here as well so quick access to if you're looking for a specific you know item that their chart  can be able to find here in this seat is eighty four different figures in this one hundred twenty page and so on page eight there we do have a presentation of the distinguished budget presentation award we did receive this for the twenty third time in a row this kind of one of those things where you know we pare the document to be able to help the council to make decisions for the community to be able to comprehend and understand and be informed about what we do as a county and what the proposals are and what we're going to be doing in the future so this award takes a combination of different  factors we have a peer review system through the government finance officers association that reviews this and provides us with if we so appropriately make the document meet certain standards it does get this award so at this point were mr chair one of those things where i don't want to be the budget director to ever lose the award this happy to move forward with what we do we do have a reader's guide to the budget the budget is a very complex document it is not only large in in scale nine hundred twenty pages but it's also large in comprehension so we provide this reader's guide t budget that provides a very good description of the different sections in there what those sections mean where the information came from page ten has the inflationary factors that we deal with provided for different financial tables that are on here salaries and wages operations equipment our basic character level and then there are object descriptions within there that you can see what each one of those   when we get into the changes you'll see continuation budget changes where those are the idea between the the behind the continuation budget change section is that it  it's basically what the department would need to continue operating providing the level of services that they can to currently operate and expansion is the requests from the different departments for areas where there want to either expand services or there are certain other regulatory requirements that require expansions so those two different sections are in there for you review the items in here go back to you know the actual individual increases and in different areas but they're all total up to these different sections we have where we provide grants subsidies you know we provide a lot of community support to non profits and others for our community and there are tables in here to utilize the grant subsidy details so you can see what we've provided in the past as well the future and then there are descriptions of each of the grant subsidies that we provide there are capital projects sheets for every project that is being proposed in the two thousand and seventeen year budget capital program any project that is receiving funding in the proposed to receive funding in the ensuing fiscal year has a detailed project sheet these projects sheets are here for your your information very detailed information on their project description justification funding sources where it meets the department's strategic plan where it means the country priorities as well as i provided a subsequent document to your committee today or yesterday i believe that transmitted that is from the planning department and it provides specific items in the mt allen plan and general plan in relation our capital project for the charter where that document is there for your review during your session as well to find out where these projects are being are planned area growth  much detail again the different descriptions in here acronyms for the different funds that we use for funding the capital projects as well so that's the basic beginning part of our document and then we'll get into the introduction there's no question members many questions for mr boss on what is shared so far in the his opening comments were good mr gross thank you so  the next the first part of the introduction section is what's called the mayor's budget message as per the charter it requires us to provide to the council a summary of the document itself and providing information relating to the proposed projects that are important to our community and discourage describes also some of the changes in revenue and organizational changes as well  throughout the document so this again you know as for your purview mayor presented to the council last week during the budget presentation much of this information and i encourage  the members and community if you haven't had a chance to read it it's one of the best compilations that you can get if you want to do a budget brief you know we provide your district meetings as well as a synopsis  members the community members to come to the district meetings have the ability to read this message right there and get summaries as well of both through this pretty quickly  one of the factors that we wanted to look at and is that in developing the clear to those seventeen budget proposal we did take into account and prioritize requests to based on three main considerations first is what we must do  what are we required to do second is what we planned to do and the third is what we want to do so in prioritizing the resources we looked at the department activities that we are quired to do first right so the general plan the mylan plan the departmental strategic plans lay out the framework of what we plan to do and then when we also looked at what the we want to do you know based on all of  different community district meetings we had we had department staff and directors provide you know kind of wish list desires so we had to really look at this and look at those aspects of it you know if it's a county charter code requirement state each r s statute that requires us to do certain things those are the highest priority items that we review then you know we look at what we plan to do you know what is it that we've we've put a lot of effort into planning this can this council especially you know everybody that's been on the council because of the ten year has seen us go through the general course items come up throughout the year throughout our planning and then we really try to work forward to developing the the best outcome with all of those different factors the proposed budget totals eight hundred ten million dollars includes transfers between funds within the county and revenue from sources outside the county so you look at you know that that's a large number you kind of recollect that the fiscal year two thousand and sixteen budget was six hundred twenty million dollars and i want to point out that that six hundred twenty million dollars that you reference in the from the ordinance of fiscal year two thousand and sixteen is actually more related to  the total county funds which include the proposed for the f i seventeen budget which are seven hundred eleven point five million dollars so the total county fund budget is going from six hundred twenty million dollars  we're going to move forward into the actual document itself the last page of the mayor's budget message has a detailed breakdown of the revenue sources and the amount of revenue that we're expecting from each of those those important it provides us with a vision for the future you know we have five parts are teaching vision of efficient effective responsive government strong diversified economy a suitable public infrastructure a prepared safe and livable county and a healthy and sustainable community are kind of our five really dreams visions you know what we want to see the county as in the future they are and the charter states that the people of part of the county of maui as a basis for a corporation confirm the equal worth and dignity of every individual and by this charter shall be and continue as a body politic and corporate by the name of the county of maui this is what really establishes us as a county in the charter of provides the details of structure departments activities that we are required to do there is a declared policy in the council in the charter that was adopted by the two thousand and twelve voters then that is to promote economy efficiency and improve service in the transaction of public business in the legislative and executive branches of the county by limiting expenditures to the lowest amount consistent with efficient performance of essential services activities and functions looking at the limit eliminating duplications overlapping services activities and functions consolidating services activities and functions of a similar nature and abolishing services activities and functions not necessary to the efficient conduct of government you know so this is a policy that we by charter are looking at as we develop our budget as well the conway policy plan was formally adopted in two thousand and ten and it provides broad goals objectives policies and implement the actions that portray the desired direction of the county's future wright says this is what we're what we're planning to do there are some guiding principles and a list of goals objectives policies and when actions and they're all related to the core themes of protecting the natural environment preserving local cultures conditions improving communities improving education strengthen social and health care services expand housing opportunities for residents strengthen the local economy improving parks and public facilities diversifying transportation options improving physical infrastructure promoting sustainable land use and growth management and we also strive for good governance so the policy plan is the framework for the element of the mao island plan which was adopted on december twenty eighth two thousand and twelve and the it's available for your purview i do encourage those out there in the community and haven't read at least the executive summary of the kind of a policy plan it's an important document to understand you know what it is that we're doing in the county and where the future direction we have to go so looking at each of the five shitty dick visions we then apply the goals and activities of the different departments to align to those different five strategic a given he's so in here for an efficient effective or funds of government we have examples of department or program goals like using appropriate accounting procedures preparing timely reliable accurate and user friendly financial reports and documents employing best recognize the cunning and supposin standards we effectively manage and control the in decreasing counties total risk so you know this is  won't go through all of them but again they're for here for you to review to be able to see you know how it is that as we go through the departments you can see that the goals that they have developed line up to these different five strategic visions  the second one they have strong diversified economy we have a job creation expanding new business different things like that sister city relationships and bring in more foreign visitors a suitable infrastructure you can see some important goals and measures that relate to those specific ones are prepared safe and livable county you know trends and our laws and departments of prevention and safety are very of specific goals that are set up in the departments that you can you're reviewing and looking at the key performance indicators to making sure are we trying are we getting to that vision are we achieving our objectives and moving towards our goals the long term financial plan is something that we look at to develop to make sure that the county is in good fiscal order you know we do prioritization you know we have we optimize our cash flow in the short term planning for in obtaining revenues in a fair and timely manner we manage the use of the funds for internal control policies and procedures we have long term policies for managing revenues maximizing credit and understanding the and count for the effect of new capital improvements on operating budget debt as well so those are that's the first item of optimizing cash flow  we work toward providing sound general management you know maximizing the organization's value maintaining an optimal organizational size and optimum growth operating efficiently and effectively and balancing risk and reward so there's a kind of items in there to assure sound reporting you know we have been trying very hard to maintain good internal controls went through the our calf or the other day where there's a test of those internal controls i'm not perfect but we try very hard to make sure that we maintain we manage our assets and liabilities conservative in our projection of revenues so slight change in these estimates will not trigger budgetary emergencies we present a budget that is recurring operating costs within recurring revenues we have to have a balanced budget we present a budget which that service is fully funded and develop an updated six year capital plan an annual basis so those are the the main areas of our long term financial plan that we focus our decision making on i did provide last year for the first year the revenue forecast for taxes you can see the long term effect is very similar to last year we did have a one point three percent i believe increase in valuations of our county properties you know probably forty five billion dollars worth of assessed value of properties in our county so that went up but then we look at the revenue increases and we look at the projections and at the history of it all the way back to eighty six and you can see it's a fairly steady growth even though there has been some fluctuations in you know mid two thousand before the fall we had a significant increase in the gross assessed value that of course took a big dip but we are back on a slow growth track here is what we're trying to we would prefer slow growth versus versus fat and some economists love it when increases double digits but we don't prefer that actually what you also see here is the  the net revenues of eighty which would have meant that the counties as a whole received one hundred sixty two million dollars and now we county would have received thirty six million dollars thirty six point nine million dollars to be specific  that legislation is is under review at the legislature at the moment and you know await the outcome of that and we'll have the outcome of that before we're done deliberating on our budget so the there will be so i believe some shifts that we're going to have to account for and i can assist the council in the committee in those shifts as well but this is the projected forecast that the time of production of this budget based on that working group's report and the increases that are projected should we have received aid should we receive a percentage whether it be a different different in forty five percent the projections in the future to show significant growth so you know that the efforts from myself being on the working group  has really been to move forward the counties the counties as a holes effort to achieve a percentage versus a flat cap that we have now and allows us for growth during growth years and that we may have challenges during during the lean years but as a percentage of the revenue it significantly supports the increase visitor count and the increased revenues then we have the ability to cover those costs down public service company tax you can see is increases about one percent a year it's been pretty flat there was a slight dip when the recession  dropped but since then it's been pretty flat fuel tax revenue you can see here has fluctuated over the years but has been declining this is a challenge that we have and challenge that course mr kerry you know very well the feds have as well as every government in here us deal with you know increased cafe standards increased economy of vehicles people writing more public transportation means that fuel prices fuel consumption goes down and last year the council did adopt an increase in the fuel tax this year the administration is proposing a five cent increase in the gas and diesel fuel so but you can see even with those those mechanical increases of the rates the declining forecast for the future is still in place the franchise tax is a tax that's provided to four public companies that want to franchise activities in our county biggest one is my electric company as well so it's it's two and a half percent of our two and a half percent of the gross receipts of the electric company so a little bit different than the public service company tax this tax is based on your electric bills and so as you've noticed and reclaimed water fees will go into the sewer fund you can see that there's been a steady increase in that not some combination of rate increases that we've had over the years as well as the increase in users pages here apologize for that and here is the chart for it we're proposing a residential trash collection increase from twenty two dollars to twenty four dollars as you know the department has presented that it costs us approximately forty or so dollars per month per account to provide the refuse collection and landfilling services for our residents so we charge trying to increase that to cover more of the cost the commercial landfill tipping fees  we're proposing what we've proposed actually the last few years which is even dollars per ton the council has increased it in slight increment up to seventy six dollars this past year so we're actually asking for it to be increased to the eighty feeling which is not the best thing but it's something that we have to deal with and lastly mr chairs the water service fees those you know provide the utility of our water department to provide  clean safe drinking water to our residents so that when you turn on the faucet that water is available to you those fees pay for the cost of delivery of those services of the liberty of that water and we are proposing a five percent increase in the water rates as well i'm a city that's the basic introduction and long term financial plan and forecast and it will get into specific details of revenues as we go through the revenue overview our engines and so please take that into account as we approach the budget of how we can try and bring some level of smart diversification to reduce major financial impacts on a sources that we should we had but we don't and so keep that in mind please as you look at the requests  you know one of the things i first was going to ask for your member your questions members is as it goes to page twenty nine and when mr baez went through his basic processes uncollected receipts from the from the prior year in review of the kaffir you saw recently in fiscal two thousand and seventeen ending balance was somewhere around eight million dollars and collected revenues we do  collect those throughout the year you do not see that number increasing in general and you see it either flat or decreasing so you know that is a decent amount of money it is a small percentage of the you know two hundred fifty million  assessment office does review those and collections looking at those that are older than three years if they have not paid their taxes then we do have filed claims of the court and we'll do tax sales and so we have the ability to to be in the property and to sell it if people don't pay their real property taxes and we are actively doing that since we started that in two thousand and point homelands and we have been going back and forth with the department of homeland and have had meetings on different processes for collection but at this point we don't have a an agreed upon you know payment either from the department itself or from the that actually it is something that still outstanding in do you know achieve try to achieve that  i don't know the current dollar amount but it's not and it's about seven digits yeah i believe was about two million dollars check and double double check that number yes but it is a significant portion of the u dedicated and conscientiousness in training together a maximum return on those cash investments i think we're going to see to know that i would be more comfortable with us having some type of third party advisor that i could actually hang over the fire and cut off his feet if they give us a bit of ice so any thoughts on making adjustments on investment i think mr chair those are definitely good suggestions during the discussion with the treasury division of department of finance later on today most likely and we can get into details of that discussion concur that it might be a good thing to look at for us to be able to  have some outside by sort of professional advice now also as we get into a little bit further in the document i did provide in this document the investment policy as well it had not been included for some reason in the stock in the past and i decided that it is for the committee can review as well as the public understand what our investment policies are what are restrictions that we have in place to be able to increase our revenue from money that is and is not being currently utilized but we also have a lot of information about our debt policies and different things in there as well so we can discuss in detail the concerns about you know what one of the the biggest things that i look at is the debt service level as compared to our operating budget because we do not want to make it so that our operating budget is consumed by that service we don't want to have it so we're just borrowing money the monies that we generate revenues are going a significant portion to pay him back so i can get into that in a few yes and we will get to that and i appreciate your comments mr post because i think you understand my philosophy on debt and there preceded you talking about that ratio to the operational annual filing recently with a c c and i was able to review the annual filing and that is one of the major factors that they're due in with in decreased revenues the the biggest factor is the fuel prices decrease you know since  still a significant portion of our electric electricity is is produced with using fuel that is the fuel surcharge is what has decreased the overall gross proceeds of the electric company and the fall of the same line with the gas tax because the use of alternate vehicles electric and other types of vehicles that don't use gas but use the same high wish just like these are the same people that when necessary and don't have and i like to get off of fossil fuel as soon as we can but it does have the impact as far as revenues to this county am i correct mr boss yes that is correct and different states the feds are looking at different the actual fuel usage which is a more important factor for our roads is the number of miles that are driven and not necessarily how much fuel used on and it may be where we and others will start looking towards in the near future also the size of the vehicles tax is also very crucial because the bigger the vehicle the more pressure put on the road use itself and so on but i'm glad that you know you brought that up i think that's something we need to be cognisant of which to jump and there's other changes and there's many more areas that i have to push for but those are the two that stuck out right away as far as revenue some concern is that you and i both know even with the fast act and the math twenty one reallocation wish still not going to get what we need done unless we really as a collaborative group states counties and the local municipalities along with the feds will be put to hit together and work on these problems thank you misplace you know one of the things that was mentioned that i was very interested in was the debt service limit discussion so i'm ok thank you thank you and again as we go through the  car project on maui for deal with t ford of them are impacting the bidding environment availability of contractors and employees to do the work and so while they may be so called cheap money to projects that we approve you know i ask why are we had to take way money from another project from west smiley because those two projects one went fifty percent higher in its bid and one was almost double the cost of the bid original budget estimate so is it really cheap money when we put in double what we had budgeted comes a point where does it make sense so keep that in mind as we  move forward because i mean this is really cheap when you bring the misplaced i think you just a quick follow up you know that talk about cheap money and whatever you know a lot of varying on what we wind up paying is timing and so we need to think about that too there are opportune moments to do something and if you don't you don't pay more later that i'm an old person things never get cheaper for long your mother taught you as you did in this cochran thank you chair and thank you director baas for your thorough opening comments in intro to this budget session coming up but looking forward to it very much some chair i'm just briefly on page thirty five the paragraph in regards to refuse collection the intro to being fees i don't happen to have the art in front of me but if i recall after my rates fees handout that we initially got i think that recent fees it's asking for eighty one not eighty and i think i highlighted so whether it's a typo or whether because i know that eighty dollars stuck out but then i think when i went through the reason fees handout it stated a dollar for which would make it a straight five dollars if i book increase a guess but it was that was my comment right now i mean i know delve into this lot deeper and in detail when we get to this particular subject matter but that just popped out i mean sure ok thank you but otherwise i mean wonderful and i know this is just a general overview and we'll get it into the the individuals with different titles there we have our department directors he can see there is still a vacancy at this point with in the department of liquor control as the director hasn't been designated here this is more so for the readers that are not familiar with our county to be able to understand the make up understand that we do have a four islands in our county people don't quite understand that sometimes the people so close is a walk who don't understand that we have for it brings its own significant challenges to the operations of a government and the costs increase because specifically of those areas  looking a resident population you can see you know it has been going up this was actually produced before the latest estimate that came out and it really puts those under sixty five thousand population so  so some general says to stakes against six of our county people who are looking at running starting businesses in our community or people that are looking at expanding into our community  new developments look at these statistics and see what our income ranges what our population ages and makes an important factor in those kind of decision making processes have broken specifically and we can get that information is available it's important factor as well as education levels of our community  then the different government structures here for the reader to understand i did a brief general economic overview taking from different resources and other resources you university of  economic research organization and provided some information here that i thought might be pertinent tourism of course in today's paper you know i had a wonderful wonderful report seeing the you know that the number of visitors arriving here on a daily basis is increased pretty significantly and the month of money that they're spending on island when they're here has increased significantly the course that was offset by the news that the as you mentioned the mckenna resort looks like it's going to be closing down and shifting its focus from being a hotel resort to  a condominium so you can see here it does important you know understand construction construction prices have increased significantly we just had a large project that we are trying to deal with that important for us to understand what those costs of capital investments are you know and how even though they're required you know we've got to really look at those but if you look at the  i provided here and figure fourteen you can see that construction was really high in the mid two thousand trade it was that's what was booming we had a lot of residential development we had a lot of commercial development and you can see that even though its risks it's rose from our percentage increases over the years have risen from our deficit and lowest point in about two thousand and eleven we still not seeing a significant increases like we had seen in the past but where you do see significant increases is all the other sectors including tourism like that that that blue line there is as all the other sectors you can see the year over year change in g d p has increased pretty significantly in the other sectors maui's unemployment is pretty significant the low decreases you can see the chart as been going down this i did a month by month for the last two years you can see that it is pretty much either gone down or stayed flat every single month and we're down at a low of about three point two percent now and this is me when you get to three more than doubled the amount of jobs that we lost from those two closures we've actually doubled the amount of jobs available in our community in this past year so you know while we understand those individual families our values and you can see some major real estate projects that are coming online we have a number of housing units that are going into going to be marketed here very shortly and help to reduce the current stressing that we have on the veil delivery of housing in our community we have some pretty large high end commercial projects going as well but you can see your over your percentage change we have some economic indicators here different factors real personal income growth you can see has been increasing increase four percent over last year different things like that sixteen seventeen and eighteen are you will be in recess to ten thirty sure return to order and continue the initial opening comments from budget director was we will come mr white to mr goodman to the committee meeting sorry for not making those saw the organizational structure in a prior table now we have this as the budgetary organizational chart so you see the total budget of eight hundred ten point four million dollars the county funds as i mentioned what's in the ordinance as part of the balanced budget is seven hundred eleven point five million revolving funds are the funds that are in and it's a they're related to fees that we charge for building permits and different things like that as well as our affordable housing and open space fund emergency fund those are things in a revolving fund and then the grat revenue fund is monies that we were expecting to receive from outside of the county  generally federal or state grants as well as some private monies as well there's a different breakdown of there you can see here the operating budgets of five hundred sixty three point six million dollars  of which three hundred seventy two point seven million dollars is general fund operations and those are the different departments and the funding levels of the general fund fund liquor fund highway fund waste water solid waste and water supply that are related to the county funds then in the capital improvement section we have proposed one hundred forty eight million dollars let's call it of capital improvement projects and out of that proposing half million dollars general fund cash sixty five million dollars or sixty four and a half million dollars of bond fund lapse bond projects as well as the bikeway fund projects highway fund you can see in there assessment is smaller amount of solid waste waste water state revolving loan fund of course is the loans that we received from the state at three quarter percent interest rate and then  charts on the next page here basically that we have a balanced budget with all sources of the funds are total resources that are available to us in total expenditures  match and that is balanced by fund as well so even though like the solid waste fund isn't self sufficient we do transfer the monies out of the general fund into the solid waste fund to make the revenues match the expenditures so county sources get seven hundred eleven point five million dollars you can see here that the general fund is the largest portion of that we have fifty eight point three percent or four hundred fourteen point six million dollars is made up of the general fund activities special revenue funds are the highway waste water solid waste those kind of activities are is two hundred point one million dollars or twenty percent of our budget and then the enterprise funds which is the department of water supplies utility operations as well as the golf course are considered enterprise and are also known as proprietary funds we found out on monday is ninety six point seven million dollars or thirteen point six percent of our revenues breaking down for sources here you can see that the real property tax is our number one source of county funds  hundred seventy six point nine million dollars proposed budget thirty eight point nine percent of our total county funds come from the report pretty tax levy that we charge public service company taxi  is a small one point three percent the second largest desert charges for current services these are the fees paid by our water users our wastewater customers different things like that is makes up one hundred thirty five point five million dollars or ninety one percent of our budget so you know sometimes that we don't have a comparison here of other counties but looking at you know your total taxes versus charges for services functionality you can  see twenty percent of it is specifically related to charges for services and different x factors into their licenses permits and others it is a similar to charges for services where there be users are actually paying for those fees all the rest of those are taxes he could see and carry over savings were estimating thirty five million dollars or about five percent of our revenue being carried over for the next page here we see that the total expenditures by character type and these get into you know the detail you can see main thing to understand shows five point eight percent because the transfer in from the water supply water supplies that service is considered a transfer out so that that orange table there with eight point six percent  includes but six million dollars and water supplies that service so there you see kind of the breakdown by character type of our different operations and then you can see the functional areas in our  describes the different functional areas that we have assigned to the different activities general government is the largest portion of twenty seven point one percent this is not administrations specifically it's related to a lot of general government activities public safety can see is about fourteen point six percent of our budget a little bit over one hundred million dollars that is related to public safety fire police here we have figure twenty four is operating expenditure by character type per department and you can see that the breakdown of salaries and wages for the different departments is here as well as for the purchases were posing ten million dollars worth of equipment purchases for two thousand and seventeen fiscal year so that total operating budget we're looking at is five hundred sixty three point five million dollars  equipment personnel we are proposing an increase in the total number of positions and about one point seven percent increase in total you from all sources or two point three percent just specifically for the county funds you can see the breakdown of positions by fund type you can see from all sources and for just for county sources you can see that general fund funds majority of the positions seventy one percent as compared to the special revenue funds are about fifteen percent grant revenues about four percent and enterprise fund water supply majority is nine percent of our can see the largest portion is in public safety a little over a thousand employees related specifically to those that functional area there and we get into the details committee of the different functions seeing only half the screen here the time i had put in a prepared a chart but i don't know where i put it but a pretty chart of the population increase in the county as compared to their positions now let's further down  thank you again so i wanted to to have a comparison there but anyway these these explanations organizational changes related to personnel are related to the different expansion requests or movements that we have you can see that highlighted the majority of them are moving in the ocean safety officers from the department of parks recreation to the department of fire public safety creation of home detail for each specific one again some more changes there are so many questions about the budget overview which will be going into later today the expansion away proposed yeah is that like that recommendation from the auditors in regards to that ex  some recommendations they were provided to the department of finance and also under planning a repeat i guess of sorts for an expansion into the planning category many departments category yeah there are a number of positions that are requested there are repeat requests that did not get funded in previous years ok chair i guess we'll probably get into more details during each individual this afternoon you can ask about the expansion three expansion positions of finance when the finance representatives come forward that i prefer that we asked the department directly those questions you know mr baez can give some i guess overview comments but i would like that departments to be the one to justify their requests very good and i guess there's been a couple of are big changes and just maybe there no big deal that i use the word sanitation now the word but i guess all these past years it had always been solid waste so i think that word i mean again it's not like a big deal but just wondering why the change the solid waste operations program is funded by solid waste the function is sanitation services right so yeah ok just a new word i noticed throughout the document from all the previous and then also under above parks and recreation from here on out you state culture and recreation so that was never kind of a distinguished word i guess associated with recreation the again the functional area that the parks department falls into is  prosecutors and liquor are all considered public safety functional areas right so culture and and recreation can include parks and recreation as well as the functions enough of economic so page fifty seven starts off our budget and financial policies section and this is a compilation of many of the deciding factors and creation of our budget that includes is again you know one of our driving factors in development of the budget so we had that in there so you know the laws as well as generally accepted accounting principles and government accounting standards board statements provide for budgetary controls defined defined the procedures for amending the budget and i defy appropriate methods of budgeting accounting and financial reporting and i understand that those are three separate functional areas within finance is is  is what we're going through right now the accounting for that is what the the accounts division department of it's does on a daily basis of tracking each one of those transactions and the financial reporting is a different function that is more related to  financial reporting from outside entities specifically related more to the kaffir and what was reviewed on monday so just to be aware of the those are three separate functions so budgetary guidelines our  own go through this in detail you can read through this is you know how we involve the public good to our long range planning you know for efficient effective operations we partner with our non profits and others and state you know to try to do the best thing we can and invest in our our capital infrastructure as well so we get the community involved prior to even preparation of the budget we working with different community district meetings and gathering input i'm working on being able to provide that to that testimony we had changed the process this past year and requested that individuals put their requests in writing so my staff is preparing that to be to transmit to to you as well so you can see when we went out to the community districts in september and october was what the community at the zire at that time ok so as you know the responsible for viewing analyzing cordoning all department to bar mental budgetary quest and presenting these chris to the mayor for final decision making before presenting the mayor's budget proposed budget to you   or before march twenty fifth as per the charter certain requirements of the budget are listed in there makes we have those charter requirements and providing the budget to you we have a budget process calendar you can see here the different the whole year and how it starts and ends with the implementation of the new fiscal year so it starts in august one pairing my staff  fact we've already started to prepare destructions for next year and you know we learn from this year and add notes and get those instructions out to the departments in august and start working on our budget all over again so a balanced budget is required you know we must have revenues to offset expenditures we cannot save we can't print money like th appropriations budgetary controls that are in place these are just some of the budgetary controls but it is controlled at the following levels of the county council must authorized by resolution a transfer appropriation appropriation except for appropriation for cap improvement lapses at the close of the fiscal year so we have until june thirtieth to spend the money that's been appropriated in our operating budget and we have a patrol december thirty first of that year to spend it if it's been appropriated for a capital project we have a process for amending the budget which is this committee is very familiar with budget implementation reports are required by county code and presented to you want a quarterly basis from my office presenting to you the program measures the key performance indicators of the different departments and programs as well as a vacancy list of big positions beyond ninety days with well if there is a these are debt services there is a financial disaster as well as to cover costs in case there's a natural or manmade disaster on replacing infrastructure or buildings as needed  so there was an emergency fund established by county charter boat and that emergency fund has been growing over the years we have significantly started to grow it in two thousand and twelve with setting a policy two months worth which would be about sixteen point six seven percent so we shot a little bit higher than twenty percent you know for your own personal bank accounts great to have six months worth but most of us fiscal year two thousand and seven we get audits on an annual basis as you well know reviewing that this past monday to present fairly all the you know they have they have found that we presented fairly all in all material respects the risk back to the financial position of the government the activities business type activities of each major fund in aggregate amount remaining funds information for the county as of june thirtieth two thousand and fifteen as you can see here in accordance with the generally accepted accounting principles our budgetary fund structure this just gives you an overview of how we discuss our funds and some of the discussion that came out in the then there's a description of each of the fines what the major revenue sources are for each of those funds of the county so that we can and it's because they're not our funds necessarily they are funds that are deposits for parks and recreation facilities are different things like that as well as other deposits money that we collect from users that are from employees that goes in to pay taxes goes through this fund very quickly different things like that agency funds  deposits that were put into one example is our planning department they were they were fees that were being charged but had been actually put into a deposit account or some revenue account and they actively reviewing these these accounts every time we do the audit we also are internally reviewing them as well in more detail trying to make sure that the funds in there are appropriate for the use or policy talks about the capital program that is presented in addition to the regular budget ordinance we do have a six year capital plan it's the ensuing year which provided details of and the five next succeeding years and tried some structure but capital budget process how we go through and review the cup or budget requests we have a cycle again you know just like the regular operating budget cycle is a never ending cycle as well financing sources of funds again some descriptions of different funds that are available for use in funding capital projects we do have a capital project long term financial plan those are related to you know the again what we plan the plan the community plans that are being developed now in the general plan as well and those are community plaid information available on the link there for anybody to review they can see the current status of community plans as well as the details of the island plan then the policy very important again you know this is one of those he said it's one of the things that i keep a close eye on making sure that our debt management doesn't overburdened not only us today but in the state restriction that's put in place i believe by the constitution of the state of hawaii that says that the that shall not exceed fifteen percent of real property value in accordance with state law so our real property tax valuation is significant so fifty percent of that is six point six eight billion dollars so theoretically the legal the only constitutional legal that limit that we have is six point six eight billion dollars seventy s under different economic drivers and status and what was graduation of roup property at that point in time so the fifteen percent doesn't make sense in today and how the state and the cons were issuing debt at that point in time so again it does give you a perspective because when you look at no there's no way discover he's going to go into that kind of do review i'm part of the distinguished budget over presentation award reviewer and i review other jurisdictions proposing the budgets and this is one of the things that i look for and there are a number of jurisdictions on the mainland that are using close to fifty percent of their assessed value as as a death it's it's scary honestly to to think of the last factor we look at is far as the debt limits are the net bonded debt per capita this is been set at twenty five hundred dollars per capita it's been twenty seven dollars per capita for as long as i could go back and check and see when that was just sure you may have more history about it but the current net bonded debt per capita is a little under two thousand dollars at one thousand nine hundred fifty two dollars per capita so this number is usually right around two thousand dollars sometimes it goes down to two hundred dollars per capita and sometimes it goes up to twenty little over two thousand trying to keep it right around two thousand that structuring practices you know we issue debt and differently than if you were a company or personal you don't go out we don't go out and get mortgages loans necessarily we issue bonds and this basically describes the method of competitive method of sale of our policy on refunding outstanding debt refinancing making sure that we're going to be at a minimum receiving saving net present value savings of three percent on our debt before we actually go through that process refunding we make sure that we use professional services for our financial advisor meant as well as our bond couns  use our bond ratings and credit the use of bond ratings credit has been i talked about our bond ratings you know being the second to the best available at double a plus we don't need to use interest rates but because our bond rating is so high we don't need to pay extra to use credit  companies do that so anyway so that management practices you know the best one of our bond proceeds is required by state statute to be funded instruments to provide liquid state revolving city for state revolving fund loans you can see the list of each of those individual loans five hundred twenty seven point five million dollars worth of total debt and right now outstanding three hundred eighteen point two million dollars i mentioned before so out of that two hundred seventy one point six million dollars is a county government function and in forty seven point eight million dollars is our proprietary funds or our water supply service going to and then it gets into the items actually get paid off here you can see the difference five years and so in five years or i guess the current year next year and then the other three years are broken out and then there aggregated amounts that and this is a big jump in when you want to bring for you mr burroughs that's because it's an aggregate of five years yes so if you split out that sixty two million dollars or eighty million dollars by five years you  actually just last week was trying to work on a broken out section it's a very complicated spreadsheet to try to aggregate the total debt service on an annual basis and split it o the investment committee actually just reviewed this in the beginning of march and adopted it with a minor change and here basically you can see the different funds that are available for us to invest and the investment policy objectives that as the director finance continue to state the main priority is safety we want to make sure that the principle that we invest is safe that we do not lose principal and then we look at the liquidity you know cash flow we spend forty billion or so a month in through our checking accounts and want to make sure that we have the cash available to bear bills that did not include but they're available should you requested early reporting the instruments the authorized financial dealers institutions where there's ethical limits of honorar mr victory you know none of these times are thank you mr carroll questions yes just a question i don't know if we can answer it but we have a bill in the legislature would change to have more options throughout what steps it takes to get to the final and project of actually putting it in the budget i guess so it looks like a project is created or needed and it goes through and so where is kayani is the planning department involved in this circle somewhere yeah the planning department is in volved in the mayor's capital and proven program proposal box they're the ones that provide a review of the items that are the mayor is planning on proposing to the council and providing comments on those relating to the planning tools that we have ok ok good to know that is there because i did go to the powers duties and functions of the planning department and item number seven says review the let's suppose capital improvements project contemplated by county recommended and recommends the order of their priority to the mayor because of obviously referring back to our general plan community plans all of that the planning department obviously has that bigger  picture view and has a better handle on where projects ought to when they ought to occur and things of that nature yes i have provided to the committee of the transmittal from the planning department on the response to my request for them to review the projects so that is available for the committees review ok ok very good great glad that they're they are involved yes thank you chair thank you very much t our ever diligent half has already indicated that mr barros is very much in tuned with us i would they wreck you members we have a  one and we that he has transmitted the planning department so reviewed proposed capital program for the seventeen proposed budget from the mayor and so you sitter can you share some comment but sure the investment committee is the governing body of our investments the treasurer is the staff person that is staffs the committee that is assigned as you mentioned to actually make the investments to manage our cash flow so the treasurer does not have and so far as i have been on the investment committee has never had a vote on the committee itself there the staff resource keep so in the structure the accounting system issues that mr culp know the accounting system illustrator is the head of the accounts division gentleman named record of accounting and the financial reporting  so i think it is to chair the next part is the financial summaries revenue and expenditure summaries here you can see this consolidated schedule for all funds and for your comparison you see the s meter revenues and expenditures revenues are by different sources categories sources as we described before like charges for current services different taxes that are there as well special assessments or from other sources like bonds flap bond carry over savings or with interface transfers transfers between funds within the company and the total increase in our budget estimate of revenues for two thousand and seventeen as compared to sixteen is about fourteen point six percent estimate of revenue increase you can see the details of that there the biggest percentage increase you can see is the special assessments and one hundred seventy five point one million dollars and that's for  capital project funding see what those assessments are that fluctuates as you can see throughout the years again the expenditures by functional area you can see how those may have shifted over the years up or so you can see here so other sources versus taxes fees and assessments different different graphs here this is by fund now the total revenue you can see into the general fund specifically in these different functional areas here and then the difference pressure revenue funds as well as the enterprise fund and then totals up to that seven hundred eleven point five million dollars of county then we have here the breakdown of the special revenue funds and specifically in different areas you can see different increases  what makes up the bikeway fund because he will only make about fifty thousand dollars in an actual bike licenses the other stuff comes in from either savings or from interphone transfers from the highway fund you can see how we fund revenues here by by category then liquor fund solid waste waste water all these information here golf and water supply are in our proprietary funds or enterprise funds on that last then we have the detailed  operating expenditure by functional area and then by the different department that's responsible for that you can see those for the general fund specifically this is this is a different functional permits that are funded out of the general fund and special revenue funds we have the highways streets and transportation is again funded by the highway fund public works and transportation services then sanitation again member cochran yes this is where sanitation comes in is solid waste fund in the part of merriment management and yet culture of recreation is a functional area for parks recreation and water supply as well this is a breakdown of the functional area and the description of the department or agency that those apply to this for their readers information  fund balances here you can see you know we have a beginning fund balance is what we consider is that the carryover savings from the year before and so the first thing happens with that is that that is trend that expenditures and the ending fund balance of zero and sure that you know we have a balanced budget here these are the detailed tables we can get into these mr chair as we get through the departments for the expenditures and revenues here will get into in a moment carry over savings is a term that is unique to what he actually have found that most other jurisdictions don't use the term carry over saving so if it's a new term for people they the technical term is for the general fund is unassigned fund balance so at the end of the year unreserved fund balance because they're all assigned directly they're special revenue so they're assigned to specific functions and so there's an reserve fund balance which is basically the fund balance minus any encumbrances or other things that are available to make make those funds no longer available so this chart here shows the different fun type the actual for two thousand and fifteen what was the carryover savings that was adopted for two thousand and sixteen what we've estimate the actual carrier savings for two thousand and sixteen and then the proposed use of carry over savings for two thousand and seventeen in our revenue and as we get into revenues we'll get into details about that as well so proximate valuation of forty four point five percent up one point three percent forty five point five billion dollars of assessed property in our county one point three percent increase so you can see this chart here kind of the trend picture so we have proposed no changes to the rates in property tax classifications these are the different ten different classifications they're available to us at the moment to classify properties set forth by the code and this committee has been reviewing those as well you can see that the historical property tax revenues even though the valuations are fairly consistent to me even though the about negative five percent each of those years but have since recovered and you can see those projected increases for these are the actual increases from fifteen and sixteen this is to the committee's final p hundred three million dollars for this fiscal year working group the legislature created to review the division of public services and present a fair allocation of the t t prepare county of maui received twenty two point eight percent of that so in our proposed budget we did propose what the working groups recommendation was which is thirty six percent and which is a thirteen point seven to discussions and start looking at setting other taxes and fees and getting closer to accurately estimating our revenues this will be an item of discussion for this committee for sure  public service company tax getting as the descriptions by state statute public utilities are required to pay into our general fund as in lieu of real property taxes are estimating two and a half million dollars in revenue for for  us franchise tax again we discussed and discussing the decrease of two most two million dollars projected for next year based on the gross revenues of my electric company tax we did not increase this year we did increase last year from two and three quarter cents per pound to three cents per pound for passenger vehicles and four cents per pound to four and thirty six one hundreds per pound for the all other motor vehicles on the way tax we're expecting an increase of about seven hundred thousand dollars or three point seven percent increase in revenue from the way taxes at the current  rate structure that's based on the number of vehicles that are being registered increasing as you get into the department of finance division of motor vehicle licensing you'll see they've requested additional operating expenses to cover the increased activities are related to sewer collection and reclamation cleaning and disposal of those it's tied directly to the water supply bill for most voters there are other instances in the rates and fees you can see for those that do not have county supply of water and this is the expected revenue where we posed a five percent increase to the rate of the for the sewer fee and we're expecting with that increase and the projected increase in usage due to more customers and  more usage it's seven point eight percent of the total county revenues we were expecting for the county is related specifically just saw the waste as i mentioned we did propose a landfill disposal tipping this in a number of years now trying to get the costs of the solid waste operations our sanitation operations be covered more so by the fees collected then by supplement the transfers from the general fund the same thing with the refuse collection fees proposing to increase from twenty two dollars to twenty four dollars per account per month water supply we're proposing a water service fee increase of again five percent rate increase personnel i know a lot of discussion related to these individual requests will be in the different departments as they come before you and justify services that the community needs and then these are the charts of increases in the proposed positions this is the total number of positions that were authorized for the previous three fiscal years as well as proposed for fiscal year two thousand and seventeen and you can see that increase and beach by each department there and again we can go into specific issues regarding that is another chart by fund you can see how much each of the funds paid for each of the positions as well as secure that is the end of my opening to you mentioned unassigned fund balances emergency and it i just want to thank you for keeping our bond rating as high as it is and so i see the reasoning for that necessary reserves from our emergency fund and what have excellent question and it's a question we ask the bond readers and we hung them on every time they come here to to rate us basically the there are two factors that prevent well that the guess preventing us from receiving the aaa at this point one is the economic diversification and that has been a challenge for as long as we've been in existence basically they feel because it is so concentrated in there the impact of other outside functions may create problems with our economy and so they're they're concerned about that and we've made tried to make a good case to them we've proved to them that we actually did better then more diversified industry communities out there in a country where they had manufacturing and you know other other levels of  yeah that's the biggest thing we're lacking is basically manufacturing and so other communities that have a more diversified economy according to their scales actually had a worse impact of their and even if you get closer west coast domestic because it's the it's the closest spot over here you know from the west coast can take that one plane trip and you're here on before island of maui but they've been working very hard and you see some of the requests in our upcoming budget related to increasing our international presence and making more of an international destination as well and that's another thing that we've worked on the bond readers to try to express to them is look at it we've we've not only done better than a lot of the communities out there who had more diversified economies but we're working on diversifying our revenue sources as well and  visitors so that's that's the biggest hurdle that we've we've had over the years and then more recently yes you're correct unfunded liabilities are something that had been a factor i see that i first see that they'll probably be less of a factor in the future now that the state has started to pay their portion of the unfunded liabilities so the bond readers commented that they were very  happy to see that the county of maui had funded one hundred percent of our required contributions and they made a point of that but because we're a part of the state's unfunded liabilities we basically are still burdened by their total i believe so but as the state as mr machida presented here the other day pays down their unfunded liabilities then i think in general the bond readers will see the county as molly and in a better position as well so i don't see that being too much of a factor in the future everybody has this because of the government accounting standards board cost eighty one dollars but the department is looking to push forward the increase from seventy nine to eight sorry seventy six dollars per ton to eighty dollars per ton so it actually cost maybe one but they're going to guess we're going to give them subsidize the one dollar per tonne i guess so that's where is one to make sure i laid it out straight it wasn't a typo you know miscalculation on a budget director's behalf it was my interpretation of the nine species look at their their numbers how much they have encumbered by ship actually spent how much you still see them in pots that we have how they have done in the last twelve months and whether they have done what informs this committee they were going to do on behalf of the people and what were the factors if they didn't perform what happened in the last twelve months that impacted their ability to move forward so i see consider that one area that mr buzz did bring up and again i think the mare i wish i could share his optimism regarding the potential revenue of t t but unfortunately i don't have the same optimism as so right now you're looking at potentially an adjustment  up option of the cost items for unit fourteenth's contract comes a point when the counties have to tell the state in the state negotiator your numbers to close to an operator doesn't work for us as an employer and maybe the counties may need to reject this country will pull this off or get back to the people to get something that makes sense for us to find have the t why we feel that it is important and that it helps the state also by getting our fair share unfortunately we have to deal with oil centric senators like kobayashi came to khuda it doesn't seem to get the island situation as clearly as are a delegation does so i want to say on the record that the church recognize and appreciates our my we delegation speaker suki's leadership because speaker understands the uniqueness of what the counties perform especially what we pay in the state department's utilize in this county the county provides the schools use our parks alre jeems our recreational facilities and a sort of we can keep mentioning to those senators that doesn't seem to get the discount it provides a lot to assist state services for the benefit of our mutual constituents th residents of this county's annoyed east don't see that this constituent is also their constituent but members these are some of the harder decisions we are going to have to deal with because them to be fair to the tax base on what is their true cost the government is going to be what we're going to be presenting to them and whether or not they are willing to pay for certain things like this county has a choice we can see that no country can go back to the people but we can say yes and find a way to pay for it and which means we need to take away from someplace else share that this is a very important review process i look forward to nine members putting our brains together to come up with one great idea because their faith in all of you and your experience is to help provide solutions and options on how to adjust a mutual challenge that doesn't only face the nine of us but our peers at all three other sister companies all facing the same challenge of contracts the increased amount for t eighty yes because i think it's it is going to make it very very clear to our residents of the state doesn't break loose a fair portion of t t to provide to the various counties the cost of not just the you know fourteen increases but the costs that we are currently covering in the budget with that thirteen million dollars are going to be shifted to the residents when they should be paid for by the visitors the visitors come here and they willingly pay the tax but over the last seven or eight years the amount of money coming to the counties has been kept so for actually for the last eighteen years our share of the t t even though the t eighty has grown from one point i'm sorry hundred twenty six million to four hundred twenty five million the county share has only grown from one hundred point three to one hundred three million in eighteen years in the time since we  impose an additional two points on the on the tax which again takes roughly twenty eight million dollars out of maui's economy and puts it in the in the state's spending bucket that we gotten an additional two point two million dollars over a period of time of the four counties cost for fire police and parks only those are the the areas that the visitors interface with the most those costs have gone up one hundred seventy million dollars and we've gotten two million dollars as the state's contribution to assist us with that without cost that's not a partnership right but i'm talking my kids i switch the front the first letters around and in a string of words but sometimes it just comes out but you know speaker suki has been very understanding yes sylvia luke yes been very understanding and you know it's it's a challenge when there are those in the state legislature the say well the state pays all the big bills yeah they do but they also pay a lot of the big bills like airports and harbors with thing with monies that don't come from the general fund so if you would live down to what is in the general fund the general fund from last year to this year has increased or is projected to increase by five hundred fifty million dollars and yet they can't break loose and give us a fair share of the t h c i think this is a time when we should asking for that money because our costs have got up very very dramatically and i like you i'm not comfortable at this point with the you to fourteen agreement because it provides a by my calculation a forty seven percent increase to a small group of county employees without solving the medical marijuana  should be a very clear understanding that if you're in a in a safety position whether it's in police or fire or ocean safety  we can't afford to have people people's vision or activities impaired by drugs that are still not beagle from a federal standpoint so it's  it's frustrating that we have from what i believe it of lack of professionalism in the negotiating at the state level and i had hoped that with us putting in the money last year to a corporation council's budget to hire a professional on the go share i would have hoped that that money could have been used to better effect but anyway  like you i am a little concerned that the state is still messing with us but our public has to understand that whatever we don't get back from the state with respect to eighty is going to require assist shift visitor costs to the rest of the residents and that's just not fair i think the president community supports the industry and i don't feel to ask them that's just not fair well we'll have the discussion on whether or not because for me it's come to question why then should the county and why we continue to invest general fund money in this industry and we keep getting it into shorts generation yet we can to get the revenue fair revenue back to reinvest back in this community in this county industry so for me to know i can put this money someplace else take money and that's why you know i'm very cautious in approaching this budget because i can see on budgeted requests coming forward to this council for needs that we haven't been thinking about yet that morning  like you did during nine eleven and yes this was a paycheck again but thank god we had cash to respond in nine eleven yesterday most of the moments came from march fifteenth what are we on march thirtieth that's how quickly we work with mr barr as we schedule that we make decisions so it's not about the budget process  and time this committee has responded you have responded well to their requests other departments just your boss has been very very diligent in vetting through the requests prior to send it through counsel and so i can that i think we've got something you should be proud of in the ability of his body to respond to financial requests and i can tell you in the upcoming departments th with this afternoon would finance one of things that i did when mr baez to comment before we break is is there a concern from the bar on reading that these the three big boys million more than we needed now we know where it's going where it's coming from and ministration is calculating their costs so is this potential at thirty five budget requirements of the county to fulfill  fifteen percent if anything less than fifty percent would affect their buy green the more that we have the better bond rating we have we have available to us there are jurisdictions that are soley tourism based  budgeted general funds they do play though those special funds that we've set aside are important but they are not reviewed in the same light as extra money that you have vailable sitting in your pocket the declining carry over savings has been an issue i first saw that a couple of years ago and that's why this test with the mayor on setting the policy for the emergency fund and the the bond traders have have accepted the the county's emergency fund as carry over savings and emergency fund in that specific late so it does concern me that the carry over savings has been declining it's an intricate balance between over taxing our people and we did come into office two thousand and eleven we had over it was one hundred ten million dollar carry over savings that one year and that was i mean that was too much definitely too much but we want to make sure that we balance that out you know we have to be able to pay for the activities of functions we have to be able to have emergency reserves within each of  exact penny that they spend every year it creates a significant challenge from a management perspective as well as from a reserve perspective we are conservative now our estimated revenues to make sure that you know we're not estimating more revenues them we're expecting so that we don't have problems with too little of money that that is in the charter of possibility as well that we need to report to you if we don't get any revenues we expect so we are a little bit conservative in that area so that produces some of the carryover scenes that we we see but the challenge of analyzing department level expenditures down to the penny has created an issue with our operations and with our emergency accident or our capital carry over savings fund balance and we appreciate  your comments especially your candid comments mr boss because it makes it clear we don't we don't want to be guests you know what the message is so thank you for being very straightforward i would say is the  the bond traders said that they consider carry over savings of fifteen percent less than fifty percent to be troublesome that is that my  so it's a little bit over all right but without but we're getting slim yes yes ok thank you anything else at this time if not we'll be in recess till one thirty p m this