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The Honolulu Advertiser

Posted at 2:59 p.m., Thursday, July 13, 2006

Hannemann details $5 million in savings

Advertiser Staff

City officials looking to trim expenses and be more accountable said there will be $5 million more in the city treasury this year as a result of lower workers' compensation costs and closing the books on some old expenses.

Mayor Mufi Hannemann today said city officials have cut workers' compensation expenses by $2 million. He said the annual cost dipped to $12.5 million this year from $14.5 million the year before.

Hannemann praised his workers for cleaning up the accounting books by determining that $3.1 million in purchase orders from the past could be canceled, freeing that money for other future expenses.

And he praised safety programs, employees and others for getting people back to work earlier, so they are more productive and money is saved.

Hannemann also announced that the city has donated to the state an amphibious excavator used to clear Salvinia molesta out of Lake Wilson. He said the 31-ton Caterpillar backhoe on pontoons cost the city $496,121.

The city hopes that turning over the backhoe might help smooth the way for the state to take responsibility for Kawai Nui Marsh in a move that requires joint cooperation between the two branches of government.