2012-2013 Fair Share Annual Report

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Fair Share Contributions: As a condition of an ordinance amending the Zoning Code, the County Council may require applicants to make a Fair Share contribution to mitigate the potential regional impacts of the development with respect to parks and recreation, fire, police, solid waste disposal facilities, and roads. The value of the contributions is based on the cost of public facilities per developed unit, and the County Council determines whether the Fair Share contribution is made as cash, land, facilities, or any combination thereof. The Fair Share contribution is typically due and payable prior to the receipt of Final Subdivision or Plan Approval and is based on the actual number of units developed. Fair Share Appropriations: All projects using Fair Share funds must be appropriated by the County Council, with the appropriation identifying Fair Share as the funding source for all or a portion of the total project costs. An appropriation for a capital expenditure that is not encumbered lapses at the end of two fiscal years following the fiscal year that the appropriation was made. Fair Share expenditures must have a “rational nexus” to the impact caused by the development. “Rational nexus” means the expenditure must benefit the fee-paying development and be directly related to the impact caused by the fee-paying development. Moreover, the expenditure should not duplicate the services paid by the development through other means such as property taxes. An eligible project for Fair Share, therefore, should meet the following criteria:  Capital improvement (not services that are funded by property taxes as part of the County operational budget);  New construction (not major repairs or renovations that correct existing deficiencies);  Located in the judicial district in which the Fair Share was collected (to benefit the fee-paying development);  Regional benefit (not limited to a single neighborhood or community). Fair Share Annual Report: Pursuant to Hawai‘i County Code section 2-162.1, this report summarizes Fair Share contributions, appropriations, and total capital funds available as of the end of FY 2012-2013 (June 30, 2013). Table 1: Contributions, Appropriations, and Funds Available. Table 1 details the cash payments to the Fair Share capital projects fund, Fair Share appropriations authorized by the County Council, appropriations that have lapsed, and Fair Share funds available for capital projects by district and project type. Fair Share funds available equals cash contributions minus appropriations plus lapsed appropriations. Through June 30, 2013, a total of $9,455,518.72 in cash contributions had been made, not including the park dedication fund. In that same period, there were $6,650,620.95 in net appropriations. This left a Fair Share fund balance totaling $2,804,897.77. Table 2: In Lieu Contributions. In lieu credits, which require County Council approval by resolution or ordinance, include improvements paid for by the applicant, planning or design services paid by the applicant for capital improvement projects, land dedicated to the County or another approved entity, or cash paid to an approved non-County entity. Table 2 details the value of in lieu assets credited through June 30, 2013. Note: There has been no change in the Park Dedication Fund, the balance of which is $89,000. See past Fair Share reports for account details. 1