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REPORT OF THE <br />COMMITTEE ON FINANCE <br />DATE: November 6, 2008 <br />PLACE: Sheraton Keauhou Bay Resort & Hotel <br />78-128 `Ehukai Street <br />Kailua-Kona, Hawaii <br />TIME: 1:33 p.m. <br />Council Chair and Members <br />Hawaii County Council <br />Hilo, Hawaii 96720 <br />Re: Comm. No. 1538/Res. No. 797-08 <br />Your Committee on Finance, to which was referred Resolution No. 797-08, reports as follows: <br />Resolution No. 797-08, transmitted by Director of Finance William Takaba, via Communication <br />No. 1538, dated October 16, 2008, authorizies the Director of Finance to deposit County securities into <br />mainland depositories and enter into such depository agreements. <br />The County of Hawaii invests monies locally with five banks and one broker-dealer. In recent months, three of <br />the financial institutions that are used have restricted or halted their intake of investments. This not only <br />concentrates investments in a few financial institutions, but also prevents obtaining the most competitive <br />interest rate. By restricting the County to do business with only those financial institutions within the State, the <br />County forgoes the opportunity of evaluating and selecting investment products that will increase yield and <br />offer more flexible terms. <br />Some members were concerned that using out-of--state institutions would lessen opportunities for the local <br />economy. Mr. Mike Okumoto, Treasurer, from the Department of Finance informed Your Committee that once <br />the measure is approved by the Council, the Finance Department can review and look for the best out-of--state <br />financial instituions, and determine which one is the best for investment. <br />Pursuant to Section 46-51, Hawaii Revised Statutes, "Deposit of Securities with mainland depositories," the <br />Director of Finance of the County of Hawaii may, with the approval of the Council, deposit securities owned <br />by the County in mainland depositories. <br />Nlr. Jacobson voted "kanalua" times two. <br />Your Committee on Finance is in accord with the purpose and intent of Resolution No. 797-08, and <br />recommends its adoption. <br />la <br /> AYES NOES A&E EX <br />FORD X <br />RIGA X <br />HOFFMANN X <br />IKEDA X <br />JACOBSON X <br />NAEOLE X <br />PILAGO X <br />YAGONG X <br />YOSHIMOTO X <br />Respectfully submitted, <br />COMMITTEE ON FINANCE <br />