BFS outlines procurement overhaul, Downtown BID launch and $1.2M vacancy reallocation in FY27 briefing

Budget & Fiscal Services Director Andy Kawano told the Honolulu City Budget Committee on March 9 that the department’s FY27 request centers on completing a procurement improvement project, modernizing billing systems and supporting a new Downtown Business Improvement District (BID).

Kawano said the administration budgeted $300,000 for procurement work in FY26 and proposed another $300,000 for a multiyear software contract to move the city toward a “future state” procurement platform. “We budgeted $300,000 in FY '26,” Kawano said, noting the project includes outside consultants and will continue into FY27 to implement changes across the procurement life cycle.

The director described a plan to integrate BID billing into the city’s real‑property tax billing platform so businesses could receive one combined bill. Kawano gave the Downtown BID a target assessment budget of roughly $1,800,000 and said the BID plans to spend about $1,000,000 on security, street cleaning and beautification measures. To help stand up the BID, BFS is proposing one supervisory accountant post and a $100,000 nonrecurring contracting allowance to augment staffing if needed.

On personnel, Kawano said BFS faces churn — hiring and separations in the same year — and has been asked to reallocate approximately $1.2 million in salary dollars tied to vacant positions to help balance the city’s budget. He described the reallocation as based on lapsing trends and vacancy percentages, pushed down to divisions for implementation and accompanied by a deliberate hiring plan: “we determined that... we would within reason be able to take a reallocation of approximately $1,200,000,” Kawano said.

Kawano also reviewed CIP requests — including vehicle replacements for real property assessment and heavy equipment for DFM and DPR — and told council members that federal funding the department administers (HUD/CDBG, WIOA) supports several program lines and related fiscal services.

Council members asked for follow‑up on specific items, including project‑based vouchers (managed by DCS), the detailed in/out activity for the CIP project adjustment account and department‑level lapsing by fund for 2024–25. Kawano agreed to provide the requested figures in writing.

The committee did not take formal action; departments and council members flagged follow‑up questions for the budget process.