REP FC 121 2018/05/21 (2016-2018)

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REPORT OF THE COMMITTEE ON FINANCE • DATE: May 21, 2018 Re: Comm. No. 938/Bill 153 PLACE: Council Chambers Hilo, Hawai`i TIME: 10:35 a.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Bill 153, reports as follows: Bill No. 153, transmitted by Council Member Aaron S. Y. Chung, via Communication No. 938 dated May 2, 2018, initiates an amendment to Article XV of the Hawai`i County Charter(2016 Edition),by adding a new section relating to Fiscal Impact Statements.. This bill would require that any proposed amendment or revision to the Hawai`i.County Charter be accompanied by a Fiscal Impact Statement that describes the immediate and potential future effects the amendment or revision would have on County revenues, expenditures, taxes, and fiscal liabilities. The Fiscal Impact Statement must be prepared in a manner that is easily understood by voters and would be placed on the County website and be made available for inclusion as part of any voter information pamphlet that addresses County ballot propositions. Council Member Chung explained he wanted to have this measure placed on the ballot, to allow citizens to be informed of fiscal impacts relating to Charter proposals. Mr. Chung was informed that it would be violative of either a constitutional provision or other State law, which prevents this from being placed on the ballot. He articulated that the next best option would be is to disseminate it to the voters, either through voter information pamphlets or the County's website. Mr. Chung stated it is a matter of getting information out to the voters so that they could make an informed decision on something that has an impact on the County's financial picture. Council Member Eileen O'Hara commented that the financial impact information should be provided to the voters. Council Member Karen Eoff referred to the language "as much as practicable" and how someone would know what practicable would mean. Deanna Sako, Director of Finance, responded that they could go back to see if there was a trend over the last five years and determine how a project may has increased, just to give people an idea, although she noted it may or may not increase in the future. Ms. Sako stated they are able to provide an estimate of what a project may cost. She stated the Finance Department is able to take on this project as the Finance Department has access to current financial information. Council Member Susan L. K. Lee Loy is in support of the bill and feels the public needs to be informed and understand what the costs are for policies that move forward through the Council and also feels a Fiscal Impact Statement will provide this information. FC Report No. 121