Council committee advances Andrew T. Kawano nomination after wide-ranging budget and operations Q&A

Andrew T. Kawano, the director designate for the city’s Department of Budget and Fiscal Services, answered questions from the Council Budget Committee on his record and priorities and the committee recommended his confirmation for adoption.

Kawano told the committee he worked to “get up to speed” on governmental finance after joining the administration and credited his team with implementing pandemic-era relief, including what he described as a rent-and-utility relief program that “paid upwards of $300,000,000” to help residents remain in their homes. He also cited the city’s use of American Rescue Plan (ARPA) and other federal funds, and said the administration set controls and review committees to get funds out quickly while trying to meet regulatory requirements.

The committee’s questioning ranged across operational and fiscal topics. Kawano described an ongoing purchasing improvement initiative begun in mid‑2024 that aims to shorten procurement timelines by better using master agreements, creating work groups to identify system improvements, and providing specialized training for department staff. “We want to optimize our use of master agreements so we can move things along faster and, more efficiently,” he said.

Members pressed Kawano on structural efficiencies and potential consolidations. Kawano said the administration is planning a study to examine combining the Fire and EMS operations and said the city has moved forward on combining the Office of Housing and Land Management. He warned that any consolidation would require up-front investment for training and that savings would likely occur over time.

Committee members also raised the city’s exposure to federal funding changes. Kawano said the city has “large dollars allocated to transportation services and community services” via FTA, FHWA and HUD and that the municipality must be ready for uncertain federal policy changes and potential court action affecting funds. He urged careful documentation, reporting and audit readiness for federal grants and said the city should continue to pursue available federal funding.

A central line of questioning concerned planned sewer-rate increases. Kawano said the proposed 9% figure is an average and that billing changes that base sewer charges on water usage will make increases variable across households. He cautioned against using one-shot general‑fund transfers to subsidize the sewer fund without analyzing the impact on bond ratings and debt service, saying, “If we start subsidizing the net revenue stream that repays the bonds, we, in effect, will weaken the credit rating of those revenue bonds.” He agreed to have the administration work with bond counsel and investment bankers before any subsidy decision.

Council members asked about lapsing funds and unspent appropriations. Kawano attributed lapses largely to staffing capacity across city agencies, saying many departments rely on temporary hires and personal‑service contracts; he said converting those to permanent hires and improving retention would reduce lapsing. Kawano also acknowledged delays in Community Development Block Grant (CDBG) federal funds, which, he said, have prevented the city from finalizing nonprofit facility deals pending grant receipts.

The committee chair recommended Resolution 25‑6, the confirmation of Andrew T. Kawano as director of Budget and Fiscal Services, be reported out for adoption. The committee did not record a roll‑call vote during the meeting.

Kawano told the committee he will continue to share data and work with council members on introduced bills and budget issues, and he described a willingness to collaborate more openly with council offices over the next term.

The committee forwarded the nomination for adoption, enabling the matter to go to full council for final action.