Comm No 0015.03 - Testimony - Art I - XVI - General Discussion - Proposed Amendments

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Draft : 3 A CHARTER AMENDMENT TO THE HAWAII COUNTY CHARTER 2018 (2018 EDITION, AS AMENDED) UNDER ARTICLE X, FINANCIAL PROCEDURES ADDING A NEW SECTION 10-16 RELATING TO THE CREATION OF THE DISASTER AND EMERENCY FUND. HAWAII COUNTY CHARTER CHAPTER 2 ADMINISTRATION ARTICLE X FINANCIAL PROCEDURES Purpose. The purpose of this charter amendment is to allow the electorate to vote to move the budget stabilization fund from the Hawaii County Code to the Hawaii County Charter, to require that deposit of monies annually at appropriate levels to provide a temporary, supplemental source of funds for the County to use during times of financial hardships while a plan for cost reduction or revenue enhancement is developed, to increase fund transparency by placing line items in the revenue and expenditure sections of the budget indicating how the monies of the fund are received and expended, to set a $2,000,000 minimum from the certified real property tax revenues received each fiscal year to be placed in the fund, and set a targeted amount of $30,000,000 after which the deposit of certified real property tax revenues may be temporarily suspended until the targeted amount falls below $30,000,000. Passage of this amendment by a simple majority of the voters voting in the election in which this charter amendment is on the ballot is required. If the associated Charter Amendment placing the budget stabilization fund in the Hawaii County Charter fails to pass the electorate, then this ordinance to remove this section of the Hawaii County Code becomes null and void and Sections 2-219 through 2-223.1 remain in the Hawaii County Code and remain in force. The Hawaii County Charter shall be amended to read as follows: Section 10-17. Budget Stabilization Fund (a) Pursuant to section 10-12, Hawaii County Charter 2018, a special fund to be known as the budget stabilization fund ("fund") is created. (b) The purpose of the fund shall be a temporary, supplemental source of monies for the County to use during times of financial hardships while a plan for cost reduction or revenue enhancement is developed. The fund may be used to insulate general fund programs and current service levels from: (1) Revenue shortfalls to minimize the need for budget cuts or tax increases; (2) A revenue reduction due to a change in state or federal legislation which reduces revenue to the county; or (3) Slower revenue growth that typically occurs during an economic recession or depression. Comm. No. 15.3