REP FC 219 05/16/2012 2010-2012 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: May 16, 2012 Re: Comm. No. 698/13ill 249 PLACE: Council Chambers Hilo, Hawaii TIME: 8:06 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Bill 249, reports as follows: Bill 249, transmitted by Council Member Pete Hoffmann via Communication No. 698, dated April 26, 2012, is a bill for an ordinance to amend Article X, Section 10-5 of the Hawaii County Charter (2010 Edition), to specify that either the Mayor or the County Council may initiate amendments to the adopted operating budget of the County during the fiscal year. Mr. Hoffmann commented the purpose of this ordinance currently does not have specific language in the Charter that permits or prohibits this action he is proposing in this amendment. Mr. Hoffmann cited concerns he received in writing from Corporation Counsel. It is Corporation Counsel's opinion that this is an administrative function and diverting from legislative history causes concern on violating the separation of powers. Furthermore, any Council initiated amendment to the Operating budget may impede the executive responsibility on presenting an accurate budget for the County's operations. Mr. Hoffmann stated sustaining Corporation Counsel's opinion hinders Council's ability to exercise their legislative duty. Furthermore, this legislative body has the responsibility if necessary to propose changes to the Charter. Deputy Corporation Counsel Renee Shoen and Corporation Counsel Craig Masuda appeared before Your Committee and briefly commented on their written opinion to the Council. Mr. Masuda also commented that this amendment could present a problem that will affect the Hawaii County's bond rating. Furthermore, there are financial advisors familiar with Hawaii County finance and bonding who are also concerned with this proposed amendment. Finance Director Nancy Crawford and Deputy Deanna Sako appeared before Your Committee. Ms. Crawford commented on County's obligations and inability to certify budget if amendments to the operating budget are occurring during the fiscal year. It was further stated that Council is in charge of policymaking, and Administration manages operations. Some of Your Committee members commented their concerns on Corporate Counsel's opinion on this proposed Charter amendment. Furthermore, the following "the unchanged and ambiguity of section 10-5 was issued in two 1991 letters by former Corporation Counsel, Mike Nlatsukawa" and attached to Corporation Council's written opinion. This provides a reason for this proposed amendment by Mr. Hoffmann. It was also commented that Hawaii County is not under any watch that would affect their bond rating. Other comments from FC Report No. 219