REP FC 153 11/01/2011 2010-2012 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: November 1, 2011 PLACE: Council Chambers Hilo, Hawai`i TIME: 1:53 p.m. Council Chair and Members Hawai`i County Council Hilo, Hawaii 96720 Re: Comm. No. 438/Bill 130 Your Committee on Finance, to which was referred Bill No. 130, reports as follows: Bill No. 130, transmitted by Director of Finance Nancy Crawford, via Communication No. 438 dated October 17, 2011, is a bill for an ordinance amending Chapter 2, Article 41, Section 2 -208, Section 2 -209 and Section 2 -210 of the Hawai`i County Code 1983 (2005 Edition, As Amended), Relating to the Disaster and Emergency Fund. The purpose of this ordinance is to ensure that the County has sufficient funding in place in the event of a natural or human - caused disaster or emergency and to further demonstrate appropriate and prudent management of County finances. A proposed amendment was transmitted via Communication 438.1 from Council Member Brenda Ford dated November 1, 2011. Those amendments contained in Communication 438.1 were unanimously approved. Ms. Ford commented that this amendment will simplify language in Section 2 -209. Ms. Ford read a portion of the purpose statement contained in the proposed bill. A minimum amount to be appropriated each fiscal year shall be $250,000; and the council establishes a policy for the disaster and emergency fund to have a targeted funding amount of $10,000,000. This does not preclude use of the fund for any reason in section 2 -210 even if the target amount is not met. Additional funds such as disaster or emergency reimbursements from federal, state may be deposited into this fund. Finance Department Director Nancy Crawford and Deputy Director Deanna Sako appeared before Your Committee. Furthermore, Ms. Ford added she worked with Ms. Sako on this proposed bill and targeted funding amount of $10,000,000. The targeted funding amount was decided on due to the previous earthquake disaster in 2006. Disaster reimbursements was seventy five percent of the total cost paid by the County for this 2006 earthquake, of which $5,000,000 of its matching portion was not reimbursed. Ms. Ford and Ms. Sako agreed to doubling that unreimbursed amount of $5,000,000 or total targeted funding amount of $10,000,000 as the goal for this fund.. Your Committee members commented on the following; 1) retaining such a large funding amount in this disaster and emergency fund could possibly hinder qualifying for additional FC Report No. 153