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FC-131 Page 2 August 7, 2018 <br /> Ms. Sako then commented that the law states all funds have to be spent specifically on transportation <br /> and/or road operations and capital projects. However, Finance will continue going to the legislature to <br /> free up the uses and purposes. <br /> Ms. Eoff reiterated that the way it worked to help balance the budget was that it freed up $3.9 million <br /> that was going to transportation and put that money back into the general fund. The Council voted to <br /> increase the general excise tax so, in turn, it increases the revenue. Ms. Sako agreed. <br /> Ms. Sako explained that Bill 168 reduced the real property taxes by$3.9 million and expenditures by <br /> $3.9 million. Part of Bill 169 is to put $3.9 million back into Mass Transit, in addition to the expected <br /> funds that will come in from the general excise tax, in order to get it back up to the $10 million. <br /> Mr. Richards asked, if Bill 1.69 is approved, what would be the annual budget for the County? Ms. Sako <br /> replied it would be $6.1 million more than it is right now. <br /> Council Chair Valerie T. Poindexter is in support of this bill, and also recalls previously agreeing to <br /> funds not being in reserve,but going towards transportation and improving transportation services. <br /> Ms. Sako stated all that is being done is to show the general excise tax of$10 million as well as show <br /> where the expected expenditures will be appropriated. Finance is putting it in the same accounts as <br /> previously discussed. <br /> Council Member Jennifer Ruggles recalls, when voting on the GET, it was clear where the money would <br /> be spent, Mass Transit, a project in Hilo and two projects in Kona. If this account is created, would it <br /> require the County to raise taxes again? Ms. Sako responded that it would not. It will be the quarter <br /> percent, which was previously approved by the Council. <br /> Your Committee on Finance is in accord with the purpose and intent of Bill No. 169, and recommends <br /> its passage on first reading. <br /> dmm <br /> AYES NOES ABS EX Respectfully submitted, <br /> CHUNG X <br /> DAVID x COMMITTEE ON FINANCE <br /> EOFF X <br /> KANUHA X <br /> LEE LOY X I I I I -'�� <br /> O'HARA X !' <br /> POINDEXTER x MAILE DAVID, CHAIR <br /> RICHARDS X FC REPORT NO.: 131 <br /> RUGGLES X ADOPTED: AUG 2 2 201 <br />