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HomeMy WebLinkAboutMIN FC 2023/05/16 (2022-2024) Committee on Finance 11t" Session Hawai`i County Building 25 Aupuni Street Hilo, Hawai`i May 16, 2023 CALL TO The regular meeting of the Committee on Finance was called to order at 6:10 p.m. ORDER: in the Council Chambers, Hilo,by Mr. Matt Kaneali`i- Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kaneali`i- Kleinfelder, Chair Ms. Cindy Evans,Vice Chair(via videoconference from Kona) Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, Member Absent& Excused: Ms. Ashley L. Kierkiewicz, Member Ms. Rebecca Villegas, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) CHR. KANEALI`I-KLEINFELDER: No testimony at this time. With that, can we please proceed to the first order on our agenda? COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 12.10: REPORT OF FUND TRANSFERS AUTHORIZED: APRIL 1 — 15, 2023 From Controller Kay Oshiro, dated April 27, 2023. Motion to Close File: Mr. Inaba moved to close file on Comm. 12.10. Seconded by Ms. Lee Loy. CHR. KANEALI`I-KLEINFELDER: Council Members, discussion on the communication? Council Member Evans, if you have anything, please add it. MS. EVANS: No thank you. Thanks Chair. FC-11 May 16,2023 CHR. KANEALI`I-KLEINFELDER: Thank you very much. Okay, seeing no discussion, the motion is on the floor, all in favor? Vote on Comm. 12.10: The motion to close file on Comm. 12.10 was carried by (Filed) the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Kierkiewicz and Villegas- 2. Excused: None. Comm. 13.10: REPORT OF CHANGE ORDERS AUTHORIZED: APRIL 1 - 15, 2023 From.Finance Director Deanna Sako, dated April 18, 2023, transmitting the above report pursuant to Section 2-12.3 of the Hawai`i County Code. Vote on Comm. 13.10: Mr. Inaba moved to close file on Comm. 13.10. Seconded (Filed) by Ms. Kimball and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Kierkiewicz and Villegas—2. Excused: None. Comm. 14.9: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED MARCH 31, 2023 From Finance Director Deanna Sako, dated April 21, 2023, transmitting the above report pursuant to Section 6-6.3(h) of the Hawai`i County Charter. Motion to Close File: Mr. Inaba moved to close file on Comm. 14.9. Seconded by Ms. Lee Loy. CHR. KANEALI`I-KLEINFELDER: Any discussion, Council Members? Council Member Galimba. MS. GALIMBA: Thank you. Director Sako, could I just ask you real quickly? So,just the first page of this, I was reading it, and so our real property tax year-to-date revenues are, as I'm reading it, 102 percent of what we were expecting? Am I reading it correctly? Page 2 FC-11 May 16,2023 (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Yes. So, we collected more than we budgeted, and this particular fiscal year, the rates did not match the revenue that was budgeted, so we do expect to collect more. MS. GALIMBA: Right. Okay, you'll have to explain that to me later. Could you explain like, did the assessments go up? MS. SAKO: No, so, when we do the budget, we have to have revenues that are greater than or equal to the expenditures that are budgeted. In this particular year with the rates that were set, we actually have revenue that is greater than the expenditures. So, any excess collected will offset either other shortages or go into fund balance that can be applied to the coming fiscal year. MS. GALIMBA: Okay. So, did you sort of discount the amount that you thought you were going to be collecting? MS. SAKO: No, it was a very long budget process last year, and there were various motions andamendments, some of which failed. So, it is what it is, yes. MS. GALIMBA: I was, yeah, sort of reviewing that. So, it's a result of those? MS. SAKO: Yes. MS. GALIMBA: Okay, that explains it. Okay. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Galimba. Council Member Lee Loy. MS. LEE LOY: Just to help my colleague. Last session, we set rates and a revenue collection. Then we programmed the budget. But the revenue collection was more than what we programmed. That's why we're going to be at 100 plus. So basically, we didn't program all the money that we were going to collect. I hope that makes it simple. MS. SAKO: But also, we're at, and this is the March reports, so we're pretty much done with the fiscal year. Our main collection periods are August and February. So, that should be the majority of everything coming in. There will be stragglers, we do send reminder bills for people who might have forgotten. So, there will be a little bit more between now and June 30th, but for the most part, that's everything that we'll have collected for the year. But that is why it's slightly higher. Page 3 FC-11 May 16,2023 CHR. KANEALI`I-KLEINFELDER: Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. So, I think I asked this before, and maybe we didn't know and maybe you know now, but under Expenditures, page 2 or page 44 they are both on there. Anyway, it's under Office of Management. There's something for$96,000 where none of it has been spent, and it's called Hawai`i County "Trek the Trails." MS. SAKO: That's one of the grants that the Mayor's Office is managing. So, lots of times when we get grants mid-year, I think that's one of the ones that we came in to amend the budget for. So, the grant will continue until the end of the grant term, and we will carry it forward to next fiscal year. So, even though it might show zero right now, it will get spent between now and the end of the grant term, which may or may not coincide with our fiscal year, especially when it's a Federal grant, the fiscal year is different than ours. MS. KAGIWADA: Okay. Is that something similar for the couple items above, Keolahou Assessment Center program? MS. SAKO: Those are older grants; I think that we're just spending down. MS. KAGIWADA: Okay, so these are mostlygrants, and theyhave longer terms Y than just this fiscal year? MS. SAKO: Yes, and so, our accounts team actually goes through each grant with each department when we close out the fiscal year books. If the grant is finished and they haven't spent it all, then they will take their appropriate action. If it still has time remaining on the grant, it will get carried forward to the new fiscal year. MS. KAGIWADA: Okay, alright. Thank you, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Evans. MS. EVANS: Thank you. When I went through the status report, I noticed that under expenditures, there were several that didn't show that there was a small amount of expenditure, and I can send you the list and we can go over it offline, but I think following the questioning of the previous Council Members, is it possible when you put together this budget report, that you can put notations at the bottom that says it's a carry-over, it will go pass the fiscal year? Something that kind of really gives us a little bit more information, because when I saw that some of this money had not been spent down, it just really raised a red flag for me,like, oh I wonder why they're not spending it there? Or have we given them enough flexibility that when it gets down towards the end, that they will, you know, maybe move it to another area, or they're going to come back and roll it Page 4 FC-11 May 16,2023 over into a different—I mean it just seems like I was missing some information there. Is it possible to do fiscal notes? MS. SAKO: Not on this particular report. However, perhaps with our new system. But a lot of them are marked grants, however, I realize yes, in the Office of Management, there's not a separate grant section. So, normally it might be labeled grants, and you can see the grants below it. If it says, dash FEMA (Federal Emergency Management Agency), that would be a grant, dash Private is similar to a grant and that is all private funding that doesn't lapse until it's spent down. So, we can try to label the accounts better to help that process in the meantime. MS. EVANS: I appreciate that, or at least like, what do you say? Not an index, but something at the beginning would say, if you see a dash one or whatever, this means—but something. Because after a while, you know, like I said there are four or five places that I went, wow, they haven't really spent the money. I wonder why? MS. SAKO: There's also some expenditure appropriations that are offset by a revenue account, and if that revenue didn't come in then they're not allowed to spend the appropriation. MS. EVANS: Oh, okay. Alright, well that explains some of it probably. So, I will definitely give you the list of what I saw. Thank you. MS. SAKO: Okay, that sounds good. MS. EVANS: Thank you, Chair. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay, seeing no further discussion, we have a motion the floor to close file on Communication 14.9. All in favor? Vote on Comm. 14.9: The motion to close file on Comm. 14.9 was carried by (Filed) the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, and Chair Kaneali i-Kleinfelder–7. Noes: None. Absent: Committee Members Kierkiewicz and Villegas–2. Excused: None. Page 5 FC-11 May 16,2023 CHR. KANEALI`I-KLEINFELDER: Communication 95.1, please. Comm. 95.1: THIRD QUARTER REALLOCATION REPORT: JANUARY 1 — MARCH 31, 2023 From Human Resources Director Waylen L. K. Leopoldino, dated April 17, 2023. Vote on Comm. 95.1: Mr. Inaba moved to close file on Comm. 95.1. Seconded (Filed) Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Kierkiewicz and Villegas—2. Excused: None. Comm. 270: REAL PROPERTY ASSESSMENT CERTIFICATION REPORT FOR THE 2023-24 TAX YEAR From Finance Director Deanna S. Sako dated April 20, 2023, transmitting the above report pursuant to Section 19-90(d) of the Hawai`i County Code, indicating a total value of$47,817,494,577 of net taxable real property. Motion to Close File: Mr. Inaba moved to close file on Comm. 270. Seconded by Ms. Lee Loy. CHR. KANEALI`I-KLEINFELDER: Any discussion? Scott, is there anyone in Kona? MR. RUEDY: Yes, we do have Lisa Miura here. CHR. KANEALI`I-KLEINFELDER: I thought so. Lisa, can you come up to the table so we can see you? I know you sat there all day patiently, probably from like 3:30 until now, you know,just waiting for this one question. I want to make it worth your while. (Note: At this time, Real Property Tax Administrator Lisa Miura came forward to address the members of the Committee.) MS. MIURA: Thank you. Lisa Miura, Real Property Tax Administrator. CHR. KANEALI`I-KLEINFELDER: Just to ask, I mean, compared to what, like let's say three years ago, what was our total? MS. MIURA: I did not bring the historical data for it. I'm super sorry. Page 6 FC-11 May 16,2023 CHR. KANEALI`I-KLEINFELDER: I mean, can you give me like a rough estimate of what you think it would be? MS. MIURA: No, I'm going to blame it on brain fog from just getting over COVID (coronavirus disease). CHR. KANEALI`I-KLEINFELDER: That's fair. You can blame it on Keita Jo too, if he's there. MS. MIURA: He's not. I will thank him for preparing the certification. I was out on leave when this came up. So, he prepared the certification, but he couldn't be here today. CHR. KANEALI`I-KLEINFELDER: Okay, I mean,just looking at this, definitely was an increase compared to last year, correct? MS. MIURA: Oh, yes. It's an increase. CHR. KANEALI`I-KLEINFELDER: What are you thinking about next year? What's your feelings? MS. MIURA: So, right now, what we're seeing, not what everybody's hearing about in the mainland or other areas where they're seeing more recession. We're not seeing that yet. I know there's a lot less sales that are occurring, but we're not seeing the drops in the value on what's coming in to us yet, especially on the west side. There's a little bit more inventory, but it's still not enough to drop the prices. CHR. KANEALI`I-KLEINFELDER: Okay. How long you been at the County for, Lisa? MS. MIURA: Since 2001. CHR. KANEALI`I-KLEINFELDER: Okay,thank you. Appreciate your time, Director. Any other questions? Council Member Galimba, go ahead. MS. GALIMBA: Hi there, Lisa. I just had a question, and it's about the Hotel and Resort class, which I guess I'm looking at the last page. But generally throughout, the values seem quite low to me and maybe you can explain why that is. MS. MIURA: So, for the Hotel-Resort class, it is really focused more on just the hotels and resorts. So, this isn't including all of the Kukio properties, Kohanaiki properties. This is really the bigger hotels and resorts, not your vacation rentals, which are probably more of the condominiums that are in the Apartment class. Page 7 FC-11 May 16,2023 So, that's why when you look at the Hotel-Resort, you actually have a low number of total aggregates of the Hotel-Resorts, which is 109 properties. MS. GALIMBA: Okay, thanks. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Evans, anything in Kona? MS. EVANS: Yeah, I have a question. I'm looking at the cover letter and what really jumps out for people—the public that is doesn't see this letter. What really jumps out, it's saying there's a total of 372 appeals,that were filed this year compared to 797 appeals last year. But the big thing is the dispute in question for the 372 is $93 million plus a few change, compared to $718 million in the previous year. That's a big difference; $93 million compared to $718 million, wow. MS. MIURA: Yes. We're pretty much back to the pre-2022 tax appeals. This 372 is about average for us. Last year, we did have a record number of appeals for this current decade. The highest level we had was closer to 1,500. But last year, almost all of the hotels appealed their values as well as a lot of commercial properties. So, because it's a higher dollar value, that's why you're seeing the large difference between what's under dispute this year. So, we're still relatively low on what's in dispute. MS. EVANS: Okay, alright. Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. Lisa, one more question. I think last year you gave me a document that showed me each district compared to the others and the different land classes that we have for the tax classes. Is that in this document or is that something separate that you guys did for us? MS. MIURA: No, it should be in your document. I'm not sure what they printed for you guys versus what was in your compact disc, the CD. But it's called the AB 103 high on the upper right corner, and it breaks down each Council district with your total of each different tax class, the net building values, the net land, and the number of appeals in each of your Council districts. We're the only County in Hawai`i that provides this data by Council district. Everybody else just does it by tax class. CHR. KANEALI`I-KLEINFELDER: What is the number again? MS. MIURA: It's called on the upper right corner AB, like Albert-Brenda 103HI, the Summary of Taxable Properties by Council Districts. You do have it? Okay, so, if you look between pages, I believe that's a 106-page document, pages 97 Page 8 FC-1 1 May 16,2023 through 106 will break down each Council district and your totals. So, it's a one- page glance. You don't have to keep flipping through all the pages. CHR. KANEALI`I-KLEINFELDER: Yes. No, I got that. What I'm looking for was the one that shows the difference from each—sorry, the comparison of like District 4 and 5 versus District 7.and 8.. So, you can see the net value or the net taxes brought in by each district in comparison to each other, if that makes sense. MS. MIURA: I don't know if that came up later in one of the budget hearings when you guys were looking at the tax rates, but we usually don't provide anything like that on the certification. CHR. KANEALI`I-KLEINFELDER: Okay. So yeah, I don't think it was part of the certification. It came afterwards,but I like that document, because I hear all the time, you know, our district supports the whole island. But that document just laid it out as far as what taxes coming from where and how much they are, and it just was really the ending for me. MS. MIURA: Yes. Right now, this one just shows the values. So, when the tax rates are discussed then that's a document we can create. CHR. KANEALI`I-KLEINFELDER: Okay. I like that document. It lets me know kind of where my district sits; where everyone's districts sits and where the tax money is coming from. I know we're one island, but it's just good to see where the property taxes are coming from and where the bulk of it comes from. MS. MIURA: Okay. CHR. KANEALI`I-KLEINFELDER: That's a separate issue. I'll follow-up separately. Thank you. Okay, seeing no further discussion, the motion is on the floor to close file on Communication 270, all in favor? Vote on Comm. 270: The motion to close file on Comm. 270 was carried (Filed) by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, and Chair Kaneali`i-Kleinfelder–7. Noes: None. Absent: Committee Members Kierkiewicz and Villegas–2. Excused: None. CHR. KANEALI`I-KLEINFELDER: Thank you, Director, for your time and for being so patient with us today. Page 9 FC-11 May 16,2023 ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 164-23: PROPOSES THE ESTABLISHMENT OF A WATER SYSTEM IMPROVEMENT DISTRICT FOR IKI PLACE, KOHANAIKI HOMESTEADS Proposes the development of the "Iki Place Water System Improvements"pursuant to Resolution No. 634-16 and Section 12-10(c) of the Hawai`i CountyCode, with ( } the Net Project Costs of$275,000 to be paid by 18 assessed units within the subdivision. Reference: Comm. 271 Intr. by: Mr. Inaba Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 164-23. Seconded by Ms. Lee Loy. CHR. KANEALI`I-KLEINFELDER: Council Member Inaba. MR. INABA: Thank you, Chair. Where to start with this?. It was before my start. So, first just want to mahalo Council Member Eoff for getting this started way back when. Wendy Baez from my office has been instrumental along the way in communicating with community members who live at Iki Place, which is right near Kaloko on the top highway, it's on the makai side of the highway, in conjunction with Kurt Inaba and the folks at DWS (Department of Water Supply); Mr. Quitoriano, who are both here this evening after this long day. What's going on here is a long-time standing problem with individual waterlines running down off the highway. Obviously, high-pressured, there's constant leaks, breakages in the line where some folks are experiencing water bills in the thousands, if they don't know they have a leak. So, after all this time we were able to work with the USDA (United States Department of Agriculture). Each of these properties will be required to pay back the loan over, I believe it's 30 years. Maybe I'll let the experts come give the fine details on this water improvement district. So, I'll ask Mr. Inaba, no relation to me, to come forth and Mr. Quitoriano to come forth and explain, if you folks have any further questions. But this is really to give front-end help to these residents, and that they would pay back for these improvements over the years ahead, and not just for them, but it would run with the properties. So, anyone who purchases property in the improvement district would then be required to continue paying towards that loan. So, Mr. Inaba, if you would like to share anything off the top? Page 10 FC-11 May 16,2023 (Note: At this time, Department of Water Supply, Engineering Division Head Kurt Inaba and Engineer Ryan Quitoriano came forward to address the members of the Committee.) MR. KURT INABA: Kurt Inaba, Department of Water Supply, Engineering Division Head. Actually, probably should let Ryan do more of the explanation. He has more of the details. MR. QUITORIANO: Ryan Quitoriano, Department of Water Supply. What was your question again, sorry. MR. INABA: If you would like to just give any summary or information to this body to help share any information that would be helpful in the decision-making today. MR. KURT INABA: Okay, so I guess this has been a long-time coming. I've been through the process with another subdivision. So, this is hopefully just a continuation of this improvement district, you know, trying to bring water to the community that doesn't have anything that's standard based on our standards. As far as the pay-back part, it's usually, I think, a 33-year payback with USDA, and I think it's usually through the real property tax collection. I know that with Wendy, she's been real instrumental again with the community, communication between us and with you to get the community to support this effort. Everybody's in favor, so I think we wouldn't have any issues with anybody in protest to that process. MR. INABA: Thank you very much. With that, again, there were people who came down to Kona Chambers today to—residents of Iki Place who came down to testify in support of this resolution, many who wrote in, in our testimony folder. So, ask for my colleagues' support on this matter, and Director Sako has also been instrumental as well and her team. So, want to thank her, and she has answers too, if you have questions. So mahalo, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Members? Council Member Galimba. MS. GALIMBA: Just one little question. When was this pipeline that exists put in? MR. QUITORIANO: So, right now, there is no pipeline in Iki Place. Yeah, this project will put in that water system for them. The majority of the owners now, they do have water service from us, but the services are located on the highway. So, they have their individual waterlines from the meter to their property that they have to maintain on their own. Page 11 FC-11 May 16,2023 MS. GALIMBA: Okay, so they like have plastic waterlines? MR. QUITORIANO: They're plastic or whatever they use. MS. GALIMBA: Right. Okay, so the way the houses were built like one-by-one, each person kind of putting in their waterline? MR. QUITORIANO: Yeah, so this is the old subdivision that was approved back in, I think, in the 1960's where the water system wasn't around at that time. MS. GALIMBA: Okay, thank you. MR. QUITORIANO: You're welcome. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Kimball. MS. KIMBALL: Thank you. Thank you both for being here and being so patient with us today. Actually, happy to support this resolution, don't have any specific questions, more questions about the concept in general. Is there a minimum number of units that this can be applied to make it work for us and for USDA? MR. KURT INABA: I don't believe so, but that's something we can check with USDA. MS. KIMBALL: Okay, I raised it because we've got a very similar situation up in Kukuihaele, where our main is quite a bit away from—I think there's eight homes or something. You know where I'm talking about? MR. KURT INABA: Right, right. Yeah. MS. KIMBALL: They haven't been able to replace them. I'm wondering if this is another mechanism for that area, or if that's too small? MR. KURT INABA: I don't think it's too small. It may affect the payback amount, the loan amount that they would have to pay back because it basically goes by each user. MS. KIMBALL: Okay, alright. I'll follow-up with you on that. Thanks. MR. KURT INABA: Yeah, sure. CHR. KANEALI`I-KLEINFELDER: Council Member Inaba. MR. INABA: Thank you. I just wanted to add, there are 18 lots in Iki Place. Seventeen of the property owners are in favor of this water improvement district, Page 12 FC-11 May 16,2023 and it's a loan for 35 years; interest will not exceed three percent; and the cost . would be approximately $40 a month to each property owner; and that's paid with the real property taxes each year. Just wanted to provide that extra information, and it's not an easy process as you can see in this resolution packet. So, should you have any questions, go see Wendy. CHR. KANEALI`I-KLEINFELDER: Okay. Council Member Evans, touching base in Kona. MS. EVANS: No, since I'm new to the Council, it's great to see this ability to help the community, and I look forward to learning more about these improvement districts in process. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay, seeing no further lights in Kona, gentlemen, my one question for you is, why not the County just improve the infrastructure being these are taxpayers? They pay their rates already. Understanding it's an old system that was put in, why are the taxpayers paying to upgrade it? MR. KURT INABA: So again, there's no system really there so there's no waterline in that road, Iki Place, it's only on the highway. So typically, it would be like a system expansion or extension. You know, if it was tied to maybe a system expansion that would loop back into our system somewhere, that might be something we would consider, as far as CIP (Capital Improvement) projects and whatnot. But these are, I guess, kind of like—I mean this exists a lot over the island, right? So, you know, if it's an old system maybe where we have an old line that needs to be replaced, then that's something we could consider also. So, there's no line. They just got out-of-bounds services, basically, meaning again, the meter is on the highway. This road is parallel to the highway, but makai of it. So, the customer lines basically run from the highway, kind of like a spaghetti line I guess everybody calls them. I think it's called Homestead Road, yeah? There's so many Homestead Roads, but yeah, and then along Iki Place. CHR. KANEALI`I-KLEINFELDER: Okay. Kind of similar to what.we see for Hawaiian Telcom where you have DSL (Digital Subscriber Line) go so far. But at some point they go, "You know what? There's a return on investment if we go another 1,000 yards down the road, because we're going to light up 35 customers. It's going to pay us back over time." You guys look at it like that or it's just more, hey this is existing, it was before us, it's customer's issue. If you guys want to pay for it, we'll take care of it, otherwise, you're on your own. MR. KURT INABA: I guess kind of like that. Yeah, it's like pre-existing lots that were there, subdivided again I think in the 1960's. But anyway, you know, Page 13 FC-11 May 16,2023 there was really no water system in the area for them at that time. So, when the main line was put in the highway up there, you know, we tried to allow people to get their first service for their residential use and that's where we kind of let them get their services off of that main up on the highway. But, hard to get to that point where we're going to look at, you know, how far we're going to expand or make these improvements. It's not like just an extension of the line. You've got to really come down, or actually, the subdivision to the North put in a water system. So, it made water a little bit closer to this subdivision now. So, a developer put in that system there, and you know, they can extend from that system to their subdivision a little bit easier than what was there before. They would have to come from the highway down and then bring it to their lots. CHR. KANEALI`I-KLEINFELDER: Okay, thank you. Appreciate that. Thanks for being here for questions today. Seeing no further discussion from the Council we do have the motion to forward Resolution 164-23 to Council with a favorable recommendation, all in favor? Vote on Res. 164-23: The motion.to recommend adoption of Res. 164-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Kierkiewicz and Villegas—2. Excused: None. CHR. KANEALI`I-KLEINFELDER: Resolution 177-23, please. Res. 177-23: AUTHORIZES THE MAYOR TO ENTER INTO A MULTI-YEAR AGREEMENT WITH THE OFFICE OF THE AUDITOR, STATE OF HAWAII Authorizes the Mayor to enter into a three-year agreement which would allow the County to request an audit of the schedule of changes in fiduciary net positions by employer including related notes to the schedule of the Hawai`i Employer-Union Health Benefits Trust Fund and report on census data to meet the reporting requirements under the Governmental Accounting Standards board. Reference: Comm. 292 Intr. by: Mr. Kaneali`i- Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 177-23. Seconded by Ms. Lee Loy. Page 14 FC-11 May 16,2023 CHR. KANEALI`I-KLEINFELDER: Council Members, discussion? Deanna, please kind of summarize what we're looking at; what this is and what it does. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: So, this one, I believe is for our OPEB (Other Post-Employment Benefits) calculation. So, all the employers in the State, you know, have to pay post-employment benefits, and we're required to report that in our Act for Annual, Comprehensive Annual Financial report. So, when we do that, it has to be audited. But it's very much an actuarial calculation. There's very specific standards in the GASB (Governmental Accounting Standards Board). So, we pulled together with the State Office of the Auditor to coordinate that audit, and they do it and then divvy it up for each employer, and we pay our share. It's a little over$1,000. CHR. KANEALI`I-KLEINFELDER: Okay, so by joining into this agreement with the State Auditor's Office, we save a little bit of money with the same work done? MS. SAKO: Yes, we do. CHR. KANEALI`I-KLEINFELDER: Fair enough. Okay, thank you. Council Members, discussion? Council Member Kagiwada. MS. KAGIWADA: Just a little note for the record. I would prefer that they don't do these big plastic covers on these reports. There's no need and it's just a waste. So, in the future, if they can just give us the paper, that would be great. I think it's a total waste of plastic. Sorry. MS. SAKO: I'll let them know, plus we have new auditors. So, that'll be fine. CHR. KANEALI`I-KLEINFELDER: Thank you. Thank you, Ms. Kagiwada. Okay, Council Member Evans, anything in Kona? MS. EVANS: No, good evening, everyone. CHR. KANEALI`I-KLEINFELDER: Thank you. Thank you very much. Okay with that, we do have the motion on the floor to forward Resolution 177-23 to Council with a favorable recommendation, all in favor? Page 15 FC-11 May 16,2023 Vote on Res. 177-23: The motion to recommend adoption of Res. 177-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Kierkiewicz and Villegas—2. Excused: None. ADJOURN- There being no further business, at 6:47 p.m., Mr. Inaba moved to adjourn MENT: the meeting. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Kierkiewicz and Villegas—2. Excused: None. CHR. KANEALI`I-KLEINFELDER: That brings us to the end of our agenda, we are adjourned. Approved: .41 v Mr. Matt Kanea(i`i-Kleinfel. r, Chair (Dat' Finance Comm ee MK/dt Page 16