Comm No 0033.02 - Testimony - CA-16 - PONC fund and Maintenance Fund

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County of Hawaii Charter Commission 25 Aupuni Street, Hilo, HI. 96720 Room 1401 February S, 2018 11:00 a.m. Re: Communication No. 33: Transmitting CA -16 for Initial Approval Aloha Charter Commissioners, I am writing to express my opposition to Communication No. 33 which would blend the public access, open space, and natural resources preservation fund ("PONC") with the PONC maintenance fund, remove the requirement that all transactions include a perpetuity clause, remove the option of accepting stewardship grants, and allow the use of PONC funds to pay for staff positions to work directly to administer the fund. Although I appreciate the effort to streamline the PONC fund and the addition of language that would allow the hiring of staff to administer the PONC from PONC monies, all of the changes recommended have a fatal flaw and would not improve upon the PONC fund's current requirements. First, the deletion of the option to accept grants and private contributions could significantly reduce the spending power of the fund and limit the public's involvement in the fund. There is no advantage to removing this option as a means to increase the revenue held in the fund. Next, CA -16 blends the PONC Fund and the PONC Maintenance Fund, and CA -16 allows for the co - mingling of funds for various purposes such as paying for staff and payment on expenses for bonds. Since both the PONC fund and PONC maintenance fund have very specific and essential services, it might weaken the overall fund should the funds be co -mingled. For instance, it would not serve the overall purpose of either fund if the maintenance fund was drained to pay for staff that then found itself without funds for needed maintenance. A more careful accounting and separation of the funds is important for success. Finally, the perpetuity clause is absolutely essential to protecting acquired lands and easements and for ensuring that all past, present, and future transactions meet legal standards to be valid. The loss of the perpetuity clause would discourage private citizens and NGOs from making matching grants, and it would prevent the valid application of IRS rules as they pertain to conservation easements and other tax applications for conservation lands. In short, the loss of the perpetuity language would render the PONC fund essentially useless and completely override the essential intent of the original law. Instead, I recommend that the Commission support CA -9 which would allow the use of PONC funds to create a dedicated staff position, and CA -18 which updates and improves the administration of the maintenance fund. The PONC Fund serves as a source of inspiration to other states and counties. Please take whatever steps are necessary to both preserve and improve the PONC Fund so that it will Comm. No. 33.2