Finance and Economic Development Committee FY 2026-2027 Budget Reviews - April 7, 2026

This meeting of the Finance and Economic Development Committee reviewed the proposed budgets for the Department of Finance (including IT, Treasury, Motor Vehicles, Real Property, and Purchasing), the Office of Economic Development, and the Planning Department for fiscal year 2026-2027. Councilmembers asked detailed questions about specific programs, staffing, and operational challenges. No formal votes were taken; the committee will consider recommendations at a later date.

Department of Finance

• IT Division: Budget increases are driven by the multi-year Enterprise Resource Planning (ERP) project (vendor: Central Square), with phase one targeting cloud migration within the first year. The IT budget would have decreased without this project. A new IT position is requested to backfill a help desk vacancy created by an internal promotion to ERP project manager. The online auction platform for surplus county assets has moved to quarterly auctions at no cost to the county. Cybersecurity remains a priority, with an average of 100 daily phishing attempts reported. The department is transitioning from lease financing to direct purchase for the ERP system.
• Motor Vehicle Division: Three vacancies exist, including a driver license examiner position funded by grants. The CDL testing wait time has improved to about one week, and testing is offered three days a week (Lihu‘e only). The Kapa‘a DMV operates by appointment only with no walk-ins; staff stated they attempt to assist visitors when there are gaps, but the lack of a lobby and full appointment capacity leads to some customers being directed to the Lihu‘e office. Councilmembers urged expanding the Kapa‘a facility to add a lobby and allow walk-ins. The kiosk program (fee-based from the vendor) is expanding; a new kiosk is being added at Western Motors in Hanapēpē. The division will provide data on service volumes by channel (in-person, kiosk, online, mail) for recent years.
• Real Property Division: The assessments and collections sections have been consolidated, simplifying budget administration. A position from Public Works is being transferred and redescribed as a GIS analyst to support the transition from paper maps to an ArcGIS platform.
• Purchasing Division: The chief procurement officer noted that the division remains 100% remote. Longtime employee Ernie (40 years) is retiring at the end of the calendar year; succession planning is underway, including a Section 4 recruitment for overlap.
• Treasury: The treasurer is expected to retire in September 2026; a Section 4 recruitment is planned.

Office of Economic Development

• Budget Overview: Total budget is $4.3 million, with about $2 million from grants. The office emphasizes stabilizing existing programs, completing grant cycles, and transitioning the Coconut Marketplace Mobility Hub to a nonprofit partner (first-year funding of $343,200 for the new nonprofit, Makaiwa Initiative).
• Agriculture & Invasive Species: $675,000 in grant funding is allocated for innovation grants ($175,000), agriculture workforce development ($50,000), and farm expansion grants ($450,000). Funding for little fire ant mitigation ($93,000) from the current fiscal year has not yet been disbursed because the Kaua‘i Invasive Species Committee (KISC) has not submitted a formal proposal; councilmembers expressed frustration and suggested reallocating the funds if not used soon. Invasive species mitigation funding ($100,000) is being used for a cooperative purchase of an air curtain incinerator with Parks and Recreation. A new economic development specialist position (vacant) is being restructured to focus on agriculture support.
• Waimea Theater: Maintenance funding increased from $35,000 to $86,000 for emergency plumbing repairs. Councilmembers noted that larger renovations will require a CIP project and requested a better cost estimate.
• Kaua‘i Made & Sister Cities: The Kaua‘i Made program is shifting toward business services in addition to events. The department completed the sister city relationship with Misaka, Japan, bringing the total to 16 sister cities (5 in Japan). Gifts budget ($15,000) covers culturally appropriate presents for delegations. Councilmembers requested a comprehensive list of all sister city expenditures.
• Community Advisory Committees (CAC): Councilmembers raised concerns about the Host Community Benefits CAC, including meetings moving to Zoom (limiting participation) and lack of term limits. A briefing was requested.

Planning Department

• Staffing & New Positions: A new Planner V position for wildfire mitigation is proposed to lead the county's Wildland-Urban Interface program, focusing on home assessments, development standards, and insurance affordability. The position is intended to be funded for a full year. The department also requests funding for four Coastal Zone Management (CZM) positions that were previously federally funded but are now at risk due to federal funding freeze; these positions are currently filled using vacant position funds. A vacant Planning Program Manager position will be recruited in May if funded.
• Enforcement: The enforcement division has six positions focused on zoning and illegal vacation rentals. The number of illegal TVRs has dropped from ~1,500 to ~800 due to enforcement actions. Fines collected total $82,000, primarily from illegal TVR and CZM violations. A breakdown by case will be provided.
• East Kaua‘i Community Plan: The draft plan is nearly complete internally; public review is expected in summer 2026, with council consideration possibly in fall/winter 2026 or early 2027.
• Vacancy & Succession: The department has a return rights position (Planner V) that the director intends to fill upon returning to the role after December 5, 2026. The department noted cross-training efforts for subdivision planning and enforcement.

Key Outcomes

• No formal votes or decisions were taken during the hearing. The committee recessed and will reconvene on Thursday, April 9, 2026, at 9:00 AM for the final day of budget reviews (Transportation Agency, Housing Agency, Office of Elderly Affairs, Office of the County Auditor, and Office of the County Clerk).
• Councilmembers requested several follow-up reports and data, including: DMV service volume by channel; breakdown of fine collections; complete listing of all OED grants (including invasive species and agriculture); and a briefing on the Host Community Benefits CAC.
• Several councilmembers expressed support for increasing DMV capacity in Kapa‘a and for funding the new wildfire mitigation position.