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.~Jrtr or N Q~ •l~-. 4 J~ Hatry Kim Dixie Kaetsu Mayor Managing Director n Q r, o~'w~+ Fl l~ it l ~ biter L.1T~ndricks Deputy Managing Director ~ountp of ~ai~ai`i ,,ut_~., 25 Aupuni Street, Room 215 Hilo, Hawaii 96720-4252 • (808) 961-821 I Fax (808) 961-6553 KONA: 75-5706 Kuakini Highway, Suile 103 Kailua-Kona, Hawaii 96740 (808) 329-5226 Fax (808)326-5663 April 17, 2005 The Honorable Stacy Higa, Chairperson, and Members Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Finance Committee Agenda for April 19, 2005 Bill 78, Relating to Public Access, Open Space, and Natural Resources Preservation Fund Dear Chairman Higa and Council Members: Thank you for the opportunity to comment on Bi1178. This Bill would create a special fund to accumulate funds to be used for acquiring lands or property entitlements to essentially preserve the public's access to and enjoyment of public lands and open space. While I understand the need to be proactive about preserving our precious lands for future generations, there are several provisions in Bill 78 that I cannot support. Bond funds. Section 2-225(b)(1) of this bill provides that the fund shall include, "the proceeds of any general obligation bonds, authorized and issued for the purposes of this article." According to our Bond Counsel, who is the party responsible for advising the County on the legality of our bond issues, issuing bonds for the purpose of acquiring property at some future date could be considered a "premature issuance" and would certainly raise arbitrage and tax exemption questions. The County's bond rating and reputation is important to our fiscal well-being, and I am sure that you will agree with me that we should not do anything to jeopardize this. This does not preclude bond funds being used for land acquisition, but it does necessitate that the land be identified and a site specific appropriation be in place before bond funds can be issued for or used for this. This is consistent with my position of support for the appropriation of funds for the acquisition of land at Honu`apo (Bill 53.) Percentage of real property tax revenues. Section 2-225(c) of this bill provides that two percent of real property tax revenues annually shall be appropriated to this fund. This cannot be supported by my administration. There are so many other responsibilities, needs and priorities of the County government, and to set aside a fixed percentage of property tax Comm. No. Z~ g' I Ref. To:p~ Ref. L'nte Hawai`i County is an equal opportunity provider and employer.