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HomeMy WebLinkAboutMIN FC 2023/08/01 (2022-2024) Committee on Finance 16th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii August 1, 2023 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 10:30 a.m., 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. Ashley L. Kierkiewicz, Member Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, 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: Okay, thank you very much. Given no testimony, let's go right to the top of the order. Mr. Clerk, Communication 12.15. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 12.15: REPORT OF FUND TRANSFERS AUTHORIZED: JUNE 16—30, 2023 From Controller Kay Oshiro, dated July 10, 2023. Motion to Close File: Ms. Lee Loy moved to close file on Comm. 12.15. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on the measure. Kona, if you have anything, please let me know. Council Member Galimba, go ahead. FC-16 August 1,2023 MS. GALIMBA: Hi Deanna, I just wanted to ask about the PONC (Public Access, Open Space and Natural Resources Preservation Commission) Stewardship transfers was a little bit complicated and I didn't quite get it. So, it was to PONC, but then also to PONC Stewardship and something about the limit. So, we had higher than normal receipts for Real Property Tax. So, yeah, can you just kind of talk me through that a little bit? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Okay so, I just want to make sure we're on Communication 12.15. There are some PONC Stewardship grants coming up at a later meeting today. MS. GALIMBA: So, $387,000. It's in the middle of the list here, 5801.55, Transfer Number 122. There we go. MS. SAKO: Transfer 122. Okay, maybe I have the wrong communication. I'm so sorry, we printed out the wrong communication. So, on this particular one, when we go to prepare the budget every year, we do our best to estimate the two percent that's going to PONC and the quarter precent that's going to the PONC Maintenance Fund. The PONC Maintenance Fund does have a cap at$3 million, and things like that. But ultimately, the amount of money we transfer is based on actual collections of real property tax, which was greater than what we budgeted. So, we are just shifting the funding from the transfer to PONC to the Disaster Emergency Fund, which now has 1 percent, and then the quarter percent in the PONC Maintenance Fund. MS. GALIMBA: Basically, it's like an overflow from the PONC goes into the Disaster Fund? MS. SAKO: But it is all based on actual collections of real property taxes. So, it actually was the Maintenance Fund that had extra funds because we have hit that $3 million cap right now. MS. GALIMBA: Okay. MS. SAKO: Most of the time, you'll see us come in during the year to actually increase the appropriation and it's usually done via a bill. So, I think that's partly why I was confused. But, yeah, sorry about that. MS. GALIMBA: Okay. So, is that like what generally would happen, or that would go into like automatically set up that if it's over the $3 million, then it goes into the Disaster Emergency? Page 2 FC-16 August 1,2023 MS. SAKO: No, it would just lapse normally. So, instead of coming in and appropriating additional revenue, we just took the extra budget amount in the General Fund and put it in the transfer to those other two funds. MS. GALIMBA: Okay, thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member. Council Member Lee Loy. MS. LEE LOY: Thanks Chair. Deanna, and maybe it's at the top of my mind right now, I'm looking at this Public Works transfer from R&M (Repair and Maintenance) into Automotive. I understand that R&M to be that Repair and Maintenance, as we're taking $50,000? We currently have a broken A/C (Air Conditioner) right here in the building that we're sitting in. So, I don't know if it's the timeliness. I just want to understand how we're taking and I'm guessing it's kind of carried over. MS. SAKO: So, keep in mind that these transfers were done in June. So, we kind of knew already what had been spent or not spent. So, in this particular case, electricity was lower than anticipated, so they actually took it out of electricity. But yes, they could have expended it on, you know, air conditioning repairs or whatnot. I don't recall the exact date when, you know, the A/C kind of stopped working. But we did know that we had other costs in Automotive at the time. So, Public Works, you know, was taken from electricity to put into the Automotive Division. MS. LEE LOY: Sure. And again, it's just the timeliness of it. MS. SAKO: I think it's the timing, yeah. MS. LEE LOY: You know, we've been putting a lot of money with R&M and have noticed things that need a lot of attention, and just wanting to understand how I ask that question to DPW (Department of Public Works). MS. SAKO: I can ask DPW, because one of the things is that, you know, they may have parts on order. You know, that's one thing about on an island, is everything we need is not always here. So, but I can follow-up with them on that. MS. LEE LOY: Absolutely. Again, I'm not opposed to it,just the mechanics of how they make those business decisions; on where there's excess, how they prioritize that. Council Member Kierkiewicz and I have worked in many spaces talking about a needs assessment and how to prioritize good, fair,poor right? Just wanting to understand the mechanics of it. Page 3 FC-16 August 1,2023 MS. SAKO: There's a lot of costs that do go into building R&M, including our electricity, and insurance, and other things like that. So,just to make sure everyone's aware, it's not only repairs and maintenance costs, it's just keeping all of our facilities up and ready. MS. LEE LOY: Correct, and then the other part is, you know, establishing a threshold, because we do have money in R&M, but sometimes they raise to the level of a CIP (Capital Improvement Projects), and how do we balance that? That and just being curious about it. MS. SAKO: Yeah, but I'll talk to them. MS. LEE LOY: Thanks Deanna. Awesome. Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member. Seeing or hearing no further discussion, we do have the motion on the floor to close file on Communication 12.15, all in favor? Vote on Comm. 12.15: The motion to close file on Comm. 12.15 was carried Filed by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Mr. Clerk, motion passes. Thank you, Deanna. Next item please. Comm. 13.15: REPORT OF CHANGE ORDERS AUTHORIZED: JUNE 16—30, 2023 From Finance Director Deanna Sako, dated July 5, 2023, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. Vote on Comm. 13.15: Ms. Lee Loy moved to close file on Comm. 13.15. Filed Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. Page 4 FC-16 August 1,2023 CHR KANEALI`I-KLEINFELDER: Mr. Clerk, motion passes. Next item, please. Comm. 14.11: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED MAY 31, 2023 From Finance Director Deanna Sako, dated July 7, 2023, transmitting the above report pursuant to Section 6-6.3(h) of the Hawaii County Charter. Vote on Comm. 14.11: Ms. Lee Loy moved to close file on Comm. 14.11. Filed Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Motion carries. Next item please? Comm. 231.3: FOURTH QUARTER REPORT OF PERSONS EMPLOYED UNDER A CONTRACT FOR LESS THAN 90 DAYS: APRIL 1 —JUNE 30, 2023 From Acting Human Resources Director Danny B. Patel, dated July 3, 2023, transmitting the above report pursuant to Section 2-12.5 of the Hawaii County Code. Motion to Close File: Ms. Lee Loy moved to close file on Comm. 231.3. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: Any discussion. MS. EVANS: Chair. CHR KANEALI`I-KLEINFELDER: Council Member Evans. MS. EVANS: Thank you. I have a question for Finance Director Sako. CHR KANEALI`I-KLEINFELDER: Okay, she's on her way up. Give her one second. MS. EVANS: Is she there? Okay. Good morning. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) Page 5 FC-16 August 1,2023 MS. SAKO: Good morning. MS. EVANS: The question I have on this is—it's for persons employed under a contract for less than 90 days for the fourth quarter. Did these people get renewals? Can they continue to get renewed? So,we saw this come out like in third quarter, second quarter, like basically just temporary hires. Can they be rolled over again and again? MS. SAKO: They can. There's a process they have to go through, and I believe the HR (Human Resources) Director just walked in. But there is a process, but they can be renewed. Sometimes with a break in service, sometimes automatically. It depends on what the need is. You know, initially when they were hired, we thought we would only need them for 90 days. Maybe the project took longer. So, there are ways that they can be extended. MS. EVANS: Okay, that's what I needed to know. Thank you. I yield, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member. Council Member Lee Loy, go ahead. MS. LEE LOY: Thanks. Deanna, real quick. A lot of this is our lifeguards, right, that I guess we kind of hire through the summer. I know we had a discussion a few times about not having enough lifeguards, which didn't keep our pools open. MS. SAKO: So, if these are lifeguards and not Water Safety Officers, then I thought we took care of Summer hires. I thought we took care of all those things. But Danny, can you come up? (Note: At this time, Acting Human Resources Director Danny Patel came forward to address the members of the Committee.) MR. PATEL: Good morning. Acting Director Danny Patel. So, the contracts there, they're summer hires basically, with the increase over the summer and the summer programs at the Parks facilities, specifically. MS. SAKO: I think it was the Water Safety Officers we changed to full-time, and that's why I was asking. So, those are now full-time positions, and we don't have the summer hires anymore for our beach lifeguards or beach Water Safety Officers. MS. LEE LOY: So, there's lifeguards and then Water Safety Officers. MS. SAKO: They work for the Fire Department. Page 6 FC-16 August 1,2023 MS. LEE LOY: Okay, got it. Thank you for reminding me. I yield. CHR KANEALI`I-KLEINFELDER: Thank you very much for being here today. With that we have the motion on the floor to close file on Communication 231.3, all in favor? Vote on Comm. 231.3: The motion to close file on Comm. 231.3 was carried Filed by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Motion carries. Next item, please? Comm. 380: FOURTH QUARTER REPORT OF UNCAPITALIZED DONATIONS: APRIL—JUNE 2023 From Finance Director Deanna S. Sako, dated July 14, 2023, transmitting the above report pursuant to Resolution Number 408-22. Vote on Comm. 380: Ms. Lee Loy moved to close file on Comm. 380. Filed Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Closing file on Communication 380. Resolution 210-23, please? ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Page 7 FC-16 August 1,2023 Res. 210-23: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT IN THE GEOTHERMAL RELOCATION AND COMMUNITY BENEFITS FUND TO HIRE SECURITY FOR ISAAC KEPO`OKALANI HALE BEACH PARK Transfers $400,000 from the Geothermal Other Current Expenses account; and credits the Geothermal Parks and Recreation Other Current Expenses account to allow for the continuation of around-the-clock security services. Reference: Comm. 378 Intr. by: Ms. Kierkiewicz Motion to Approve: Ms. Kierkiewicz moved to recommend adoption of Res. 210-23. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Member Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. You know, our district is host to Puna Geothermal, and one of the requirements is that they pay a series of royalties to the DLNR (Department of Land and Natural Resources), OHA (Office of Hawaiian Affairs) and to the County. And so, there is a fund that the County manages related to Geothermal relocation and community benefits. It's spelt out in the Code, and it also identifies where, in community, the lower Puna region. This money can be used to support things like infrastructure, Parks and Recreation, road, water improvement; Civil Defense, Mass Transit. A couple of years ago, our office in partnership with the Recovery Team lead an initiative called Revitalize Pohoiki. It was a community engagement and planning process to direct where Federal dollars will go as it relates to disaster recovery. Four of the key items that emerged from those conversations that community wanted to see was: Honoring of Cultural Identities; Safety and Security; Appropriate Amenities, and Support in Partnerships. This particular resolution would allocate $400,000 to secure the efforts at Isaac Kepo`okalani Hale Park and hit on at least three of these four themes. One of the things that we wanted to make sure that we acknowledged and uplifted in this resolution is the hard work that's happening with Community Partners, Parks and Recreation, and Research and Development as it relates to community-based stewardship and security providing meaningful job opportunities for folks that have lineal genealogical ties to the area to actually be stewards of that land providing security but also empowering local history and connection to anybody that visits that place. So,just enhances the sense of ownership and respect and responsibility when we are able to provide these types of jobs to folks that live in these communities. Looking for my colleagues' support on this. Page 8 FC-16 August 1,2023 It would allow Parks to move forward with an RFP (Request for Proposal) to hire a security firm that would be able to, not just protect and provide security and prevent vandalism at the park but ensure folks that are part of this firm also have a sense of place and connection to the area. Thank you, Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member. Further discussion? Okay, hearing none, Ms. Sako, I do have a question about the resolution. More so, process and hopefully, you have some answers for me. Given this is not really a department. Usually, a resolution like this has an accompanying bill. Is that required in this? MS. SAKO: No, because we're actually transferring the fund within Fund 95, which is our Geothermal Relocation and Community Benefits Fund. So, it's from the regular Geothermal OCE(Other Current Expenses) out to the Parks and Rec OCE within that same fund. CHR KANEALI`I-KLEINFELDER: Okay. Then, I was reading through some of the background provided, and it said there's already funding for security to the tune of$360,000. So, is this an additional or is this a new round of security? Are you aware? MS. SAKO: We have security budgeted throughout the budget. I don't know that we have it already in the Geothermal Fund. I think this is getting it there. But Parks does have a lot of security funding, but it is not enough. The prices have gone up a lot this year. I think the $360,000 you're referring to, I think is last year's amount. CHR KANEALI`I-KLEINFELDER: That was last year's amount. So, the increase was $40,000 not$400,000? MS. SAKO: We are asking for a new $400,000. But right, the increase was only $40,000. CHR KANEALI`I-KLEINFELDER: Okay, so Parks and Rec because I'm thinking of all the different budgetary things we've done in the past few years. So, we increased Parks and Rec's ability to have a budget line item for security. It was a fairly large amount if I remember correctly. MS. SAKO: It has been going up over the years. CHR KANEALI`I-KLEINFELDER: Then, this is not$400,000 on top of the existing $360,000? Page 9 FC-16 August 1,2023 MS. SAKO: This is this year's funds for fiscal year, 2024. The $360,000 was for last year. CHR KANEALI`I-KLEINFELDER: Okay, and the other funds will be going to other parks around the island, but not Pohoiki? MS. SAKO: We have a lot of beach parks. CHR KANEALI`I-KLEINFELDER: Was Pohoiki funded currently, are you aware? MS. SAKO: Not in the General Fund. We were hoping to get this Geothermal funding for Pohoiki. CHR KANEALI`I-KLEINFELDER: Okay, that was very helpful. Thank you, Deanna. Okay, I'll be supporting this today. I mean,just as a surfer, and I'm sure my partner in Puna would agree. When you're down there in the evenings, it's an interesting area at night. So, I like that this is 365, 24/7 security coverage, because it's remote. Well, it's a beautiful area, and if we really want to push families and ohana's being down there, then security would be very helpful in that regard and a good funding source as well. Okay with that, Ms. Kierkiewicz, anything else? Okay, motion is on the floor to forward Resolution 210-23 favorably to Council, all in favor? Vote on Res. 210-23: The motion to recommend adoption of Res. 210-23 (Approved) was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Motion carries. Next resolution, please. (Note: At this time, Director of Research and Development Douglass Adams and Sustainability Specialist Jake Sykes came forward to address the members of the Committee.) Page 10 FC-16 August 1,2023 MR. ADAMS: Thank you. Doug Adams, Director of Research and Development. MR. SYKES: Aloha, thank you. Jake Sykes, Sustainability Specialist with Research and Development. MR. ADAMS: I'm going to turn this over to Jake. He and other members of the Climate Team found this opportunity Point of Order: MS. KIMBALL: Point of Order, Chair. I don't believe you guys are—are you here to testify on the item as a testifier or to present on the item? MR. BROWN: That's up to the speaker. MR. ADAMS: We're here to present on the item. MS. KIMBALL: In which case, we need to take the motion first and then have you present. I apologize, semantics. Don't move. CHR KANEALI`I-KLEINFELDER: I did think you were testifying. Sorry, well I said okay. Okay, that is interesting, well okay. MR. BROWN: That was me as well. I apologize, I thought they were testifying as well. When you guys present, you will not have a time limit once we read in the agenda item. Res. 211-23: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES Allows for the receipt of$350,000 in federally-derived funds, which would be used to develop a Priority Climate Action Plan and a Comprehensive Climate Action Plan in coordination with the State Climate Change Mitigation and Adaptation Commission. Reference: Comm. 381 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 211-23. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: Council Members, I'm going to go to our Director now for his presentation. Thank you for being here today and for Mr. Sykes. Page 11 FC-16 August 1,2023 MR. ADAMS: Thank you Chair, thank you Members of the Council. Doug Adams, Director of Research and Development. I'm going to turn this over to Jake, who will introduce himself again. Just wanted to say that this particular program is something that our Climate Team within the department really brought it to me and said, "hey, can we go do this T' Then the connection with the Climate Mitigation and Adaptation Commission that exists at the State within DLNR (Department of Land and Natural Resources) for administrative purposes, are the ones that are actually running the funds that are going to be coming through that, and Jake will talk all about that. But, very proud of them. So, an opportunity for Jake to present. MR. SYKES: Aloha, Chair and Members of the County Council_ Mahalo for the opportunity to present before you today. What we have before you is a grant agreement to accept$350,000 from DLNR Commission of Climate Mitigation and Adaptation. This $350,000 comes from—last year, Congress had passed the Inflation Reduction Act, and that allocated $3 million to each state to come up with a planning mechanism to create the Comprehensive and Priority Climate Action Plans (CLAP and PCAP). So, when I came on board a few months ago, we were just finalizing the Integrated Climate Action Plan (ICAP). So, we had the ICAP, the CLAP, and the PCAP's, if you guys are all following along? So, our Integrated Climate Action Plan focused really on municipal operations, and so this grant opportunity was just very much aligned with how we were trying to segway into a community facing climate action plan. So, we put in a request for this $350,000, and we will be hiring a Community Engagement Specialist to conduct engagement opportunities for the next two years to really round out our community facing climate actions plans. Once we create the Priority Climate Action Plan with the list of community driving mitigation projects, we will be able to qualify for an additional $5 billion in implementation grants. So, thank you. CHR KANEALI`I-KLEINFELDER: Thank you very much. Council Members, discussion on the motion? I'm going to go to Council Member Villegas, then I'll go to Council Member Evans. MS. VILLEGAS: Wow, congratulations. Thank you so much. I am inspired. I am given hope. I am humbly, radically grateful for your initiative and identifying these opportunities and your tenacity and determination for doing the work to put together the applications to get this funding for our County. I can't thank you enough. Page 12 FC-16 August 1,2023 We have come lightyears in the last few years, and I want to really validate and recognize and make sure you understand the depth of my personal and professional gratitude for getting the money to support these efforts, which refutes the all to often challenges of the past of well, we don't have the money for that, that's a nice idea. But this alignment with State, Federal, and County funding opportunities to get this done, and set us up for success in the future. Thank you so much, Jake. Thank you, Director Adams for you supporting your staff in identifying these opportunities and going after them and being able to focus their energy and attention on this as a priority for this department and for our County as a whole. So, thank you so much, I yield. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Evans. MS. EVANS: Thank you. My question has to do with, it's for two years, which the clock will move extremely fast through those two years. You mentioned that there would be a community-driven engagement because this will be a Community Climate Action Plan. Given that, it's just one individual. Has there been any thought about the community engagement yet, or will that play out? Will you, you know, really engage the Council Members and reach out to them about how to give the community-engagement piece. I'm just curious because I know you just did the Integrated Climate Action Plan, but this sounds very different. So, maybe you can expand just a little bit on it for me to understand. MR. SYKES: Yes, part of their job description is to have experience conducting community engagement series. So, we are hoping that this individual that comes on will know how to engage the communities in an effective way, and I do anticipate that making contact with each of you Council Members to really understand the issues that your districts are facing and to connect with your communities and that will be an integral part of that. I imagine that they'll start off engaging the State currently has technical working groups focused on the sectors of emissions. So they will, you know, get started with the technical working groups and bring in Community Partners. But then also conduct the engagement series, and either tag along to existing community events. So, if there's, you know, in your district an agricultural event, they would tag along and kind of pull in a piece on climate change and agriculture and really uplift that sector in how they can mitigate their emissions and doing engagement. These kinds of individual events that cover other sectors of the economy or social issues out here. Page 13 FC-16 August 1,2023 Climate change itself is not a really exciting topic that brings out crowds to an individual event focused on it, so it might be more effective for the specialist to tag along to existing events. MS. EVANS: Do you see it really being focused on carbon emissions? Because obviously that engages your agricultural community. MR. SYKES: Yes, the Priority Action Plan will consist of projects and initiatives that focus solely on emissions mitigation. So, we're working hand-in-hand with the State Energy Office on their decarbonization strategy as well. MS. EVANS: Okay. Director Adams, you look like you had a comment. MR. ADAMS: I did. Thank you, Council Member Evans, appreciate it. I was just going to remark that the efforts here that we see this position being responsible for is, in addition to the way that Jake described connecting with the specialist, obviously, we'll expect that this particular community engagement specialist will also be engaged in fact, reaching out into the communities specifically to talk about opportunities for mitigation and mitigation projects that would then be presented to the State and to the Climate Commission. But in addition, I think it's helpful potentially for the Council to also hear, maybe again,just how actually integrated the specialists are within Research and Development. We talk about their individual portfolios that they have and the sectors that they're responsible for, but in fact, they actually work quite closely together. When there are events, such as one of the agricultural events that occurred up in Kohala fairly recently, it wasn't just the agricultural specialists that were there. There was a number of folks from Research and Development that were there as a part of the County team. So, we see that when we go out into the community. It isn't necessarily just one member of our team, but it could be two or three and not just from one area. So, we anticipate the opportunities for sharing among the specialists and working with the Community Engagement Specialist in this particular position for this particular focus to be working together. MS. EVANS: Just one last question. Is there any thought given to connecting with our high school, our youth? You know, would that be part of it? MR. SYKES: If they have shovel-ready emissions reduction projects, I am fully ready to engage the youth. But, I guess maybe from framing how we want to approach mitigation and what we want. You know, 20 years of decarbonization to look like, yeah, it would be really critical to ground ourselves in what our youth and keiki want. Page 14 FC-16 August 1,2023 MS. EVANS: Okay, thank you, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member Evans. Coming back to Hilo. Council Member Inaba, go ahead. MR. INABA: Thank you, and congratulations. Just a question regarding OSCER's (Office of Sustainability, Climate, Equity, and Resilience) fit in with this resolution. Is this going to be something that continues to live primarily and solely with R&D (Department of Research and Development) moving forward? MS. ADAMS: So, this particular position is coming to Research and Development for the purpose of the Community Engagement Specialist. They will be starting from a number like zero, in terms of Community Engagement Specialist. We will see that there will be several of those, but there will be opportunities for them both to work together and then also to work in and on projects that they have responsibility for. So, to answer the question directly, we clearly think that there will be the connections with positions in OSCER as well as this position and at least one other position that we'll be coming back to you to talk about that is a partnership moving forward. So, it is our intention that now is the time to be able to be speaking with the community about all of these sustainability-related activities. MR. INABA: Okay, got it. Thank you, Director. Congratulations again. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Galimba, go ahead. MS. GALIMBA: Just a quick question. So, the PCAP is going to be at the State level. So, this person will just be contributing ideas to the PCAP, is that right? MR. SYKES: Yes, both the Priority Climate Action Plan and the Comprehensive Climate Action Plan are both statewide. What the other counties are doing is just having Honolulu hire out Engagement Specialists for Maui and Kauai, and they're hiring out of Honolulu. So, we just wanted to make sure that if they were getting this bucket of funds for the PCAP development, that our Engagement Specialist would be on-island. MR. ADAMS: If I may, Council Member. It's not just what they'll be doing, though, right? Anytime we have our folks that are going into the community, the opportunity to talk about items that the community is interested in is always going to be part of the responsibilities that those, you know, specialists have in terms of bringing back that information. Page 15 FC-16 August 1,2023 So yes, the focus will because that's a part of the position and where the funding is coming from. It's a development of information within the communities here on the island for the development of both this PCAP and CLAP. But we believe that there will be more information that will be available for us. More conversations available for us; more opportunities for collaboration that will come out of this as well. MS. GALIMBA: Thank you. Yeah, that seems like a much better model that do it this way. So, thank you for the initiative to make it happen. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Just point of personal privilege. I wanted to take a moment and have a proud mama moment. Jake was my former Legislative Aide, and we worked in the trenches getting money from the State for the Green Jobs Corps Program and writing, you know, grants to the USDA (United States Department of Agriculture) so we could be funded for real place- making initiatives. So, he has everything that's really needed to go after these funds and really be proactive. So, I'm just so glad that you're able to have an impact now on an island-wide level, and I love the fact that we are ensuring that there is an individual that's going to be rooted here and located on Hawaii Island to carry out this work. We just had a presentation by Dr. Greg Asner where he talked about the importance of engaging and educating your community as we make swift and important policy decisions and encourage people to make critical lifestyle decisions. So, having someone dedicated to engaging community in this way is very, important. So, thank you Jake for all of your work to ensure that our County has the funding that is really required to employ someone in this capacity. Thank you, Director,just for empowering your team, to do. Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Thank you, Director and thank you, Jake. This is awesome. I just have a question about the potential for the, you know, I assume that some of the pot of the $5 billion for kind of getting plan-to-action. Is that money that can be used for community organizations to do some of this work, or is it specifically for the State to access that money for statewide programs? MR. SYKES: You're referring to the $5 billion of implementation funds? MS. KAGIWADA: Yeah. Page 16 FC-16 August 1,2023 MR. SYKES: So, those will be allocated directly towards the projects that are included in the Priority Climate Action Plan. So, similar to this grant, I would assume that the State would be a passthrough entity and that either R&D or OSCER, whichever, you know, this is a couple years out—is managing. This will accept those funds and then give it to our organizations or implementing partners. MS. KAGIWADA: Okay, great. I'm so glad that you followed up on this, because I know some of the community organizations were really hoping for something like this. So, thank you so much for doing that. I really think the community is going to be happy about this. Thank you, both. I yield. CHR KANEALI`I-KLEINFELDER: Mahalo. MR. SYKES: Oh,just to add. To really kickstart the Community Engagement, if any of our community partners, and you know, businesses are paying attention to this and want to be involved in the process, feel free to contact us at SustainabilitygHawaii.gov. CHR KANEALI`I-KLEINFELDER: Thank you very much. Council Member Kimball, go ahead. MS. KIMBALL: Yeah, I just wanted to lend my congratulations as well to all of the folks that worked so hard on getting this together. In terms of the Implementation Funds, another thing to highlight. This is one of the programs that does fall under the Justice 40 Initiative. So, there is intention to really see that these funds are distributed in a way that it is equitable and support some of our traditionally disadvantaged folks. Just wanted to mention that as well. Thanks. CHR KANEALI`I-KLEINFELDER: Thank you. Okay seeing no further discussion, thank you very much for the presentation. All my questions have been answered, and I really appreciate both of your time and energy on this. Look forward to seeing what happens from here. We do have the motion on the floor to forward Resolution 211-23 to Council with a favorable recommendation, Council Members all in favor? Vote on Res. 211-23: The motion to recommend adoption of Res. 211-23 (Approved) was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder–9. Noes: None. Absent: None. Excused: None. Page 17 FC-16 August 1,2023 CHR KANEALI`I-KLEINFELDER: Motion carries. Res. 212-23: EXTENDS ONE TEMPORARY POSITION FOR THE DEPARTMENT OF RESEARCH AND DEVELOPMENT Seeks to extend the Economic Development Specialist III position for an additional three months to oversee Kuleana Health program activities and complete associated reports. Reference: Comm. 382 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 212-23. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: We do have the Director here. Director, give us a little background and then we'll go from there, thank you for your time today. MR. ADAMS: Thank you, Chair. Thank you, Members of the Council. Doug Adams, Director of Research and Development. This refers to the two-year Advancing Literacy Grant that the County received back in July 2021 from the U.S Health and Human Services. That was, as I mentioned, a two-year project which would have ended June 30'', 2023. We applied for and then we were granted a three-month no-cost extension for that program to finish. A few of the items that we still had to finish particularly in evaluation, as well as some district-related activities. I've been fortunate enough to see some of the reports during, and then of course, at the end a conclusion that we're coming up to. Been very happy to see the work that's been ongoing around the island by our health care and community individuals and organizations that have been connected with this effort. Frankly, this is on me. We anticipated the additional three months would allow us to use the funding that was already there; continue to be there to pay for the temporary position we've had, which has been an Economic Development Specialist III position that's been the program manager within R&D for this grant working with in particular, UH (University of Hawaii) in the evaluation and Community First and the organization that it is a consortion lead for. It turns out that, that was not completely correct. That the funding would pay for a portion of that position, the remaining three months and that there was a portion that the County needed to pick up. There is still a no-cost element to this, because the individual that has been filling that position has return rights to the EDS II(Economic Development Specialist 11) Community Wellbeing position that we have and would have started filling that Page 18 FC-16 August 1,2023 position again on July 1st, if not for this three-month extension. So, we have funding within the Salary and Wages (S&W)portion of the department, and I have the Finance Director behind me to correct me if I say anything incorrect. But the idea is that we'll be able to use funding within R&D S&W account to make up the difference that the grant doesn't cover for the time period between July I" and September 30th. CHR KANEALI`I-KLEINFELDER: Thank you, Director. Council Members, discussion? Council Member Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Thank you, Director for being here and for the overview. I think following the three-month no-cost extension when your team has had a chance to finalize the report, would it be possible to come to Council and provide an overview of, you know, what was learned during the program, the successes, challenges; how we might be able to continue this work within R&D? I know we don't have a Department of Health, per se. But I think we are all keenly aware of the desire to have employees that feel supported insuring their health and wellbeing, because that's critically tied to us being able to do anything, you know, as a community. So, we would love to know the level of impacts that this initiative has had around the island and what's it's going to catalyze. MR. ADAMS: Thank you, Council Member. I'm not normally somebody that indicates that he's excited, and this is my excited face. We are excited to bring that information to you once we've concluded with the development of the report. MS. KIERKIEWICZ: Excellent. We look forward to chatting with you and your team in the near future about this. Chair, I yield. CHR KANEALI`I-KLEINFELDER: Okay. Hearing and seeing no further discussion, thank you very much, Director. The motion is on the floor to forward Resolution 212-23 to Council with a favorable recommendation, all in favor? Vote on Res. 212-23: The motion to recommend adoption of Res. 212-23 (Approved) was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. Page 19 FC-16 August 1,2023 CHR KANEALII-KLEINFELDER: Motion carries. Mr. Clerk, Bill 59, please? BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 59: AMENDS CHAPTER 19, ARTICLE 10, SECTION 19-71, OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO HOME EXEMPTIONS Amends subsection (d) by adding an age range of 75 years of age or over but not 80 years of age or over for a$110,000 exemption and adding an exemption of $125,000 for taxpayers 80 years of age or over. Reference: Comm. 371 Intr. by: Ms. Evans (Note: Comm. 371.1 dated July 28, 2023, from Council Member Cindy Evans, transmitting the Real Property Tax Legislative Change Summary related to Bill 59, was circulated.) Motion to Approve: Ms. Evans moved to recommend passage of Bill 59 on first reading. Seconded by Mr. Inaba. CHR KANEALII-KLEINFELDER: Council Member Evans, go ahead. MS. EVANS: Thank you. I don't know if this is the appropriate time, but I do have a Communication 371.1 that has information. I think that's critical to make it a public record. So, do I make a motion now to close file on 371.1? CHR KANEALII-KLEINFELDER: That would beat your discretion. But not necessary. You could go ahead with discussion, and then proceed to your communication or just for the open discussion, if you would? MS. EVANS: Okay, thank you. So, I will just say to my colleagues and to the public, that is you know with us today, that I strongly believe that with the aging of our population and with the amount of inflation that we have had. I do believe that when you get to 80-plus, we have many people living older; we have many people that are widowed. I think it's time for us to consider what's happening with our 80-plus-year-old population, and I ask my colleagues for a favorable support. Thank you. CHR KANEALII-KLEINFELDER: Thank you, Council Member Evans. Council Members, discussion? Council Member Lee Loy, go ahead. Page 20 FC-16 August 1,2023 MS. LEE LOY: Thank you, Chair. Absolutely, in support. Anything we can do to help manage our kupuna's income is always a positive. Thank you for Communication 371.1. You know of course, our experts Deanna and Keita, how do we land? A couple of questions about what this does toI don't think it's offset, but basically what it does to impact our collections. How comfortable we are with this, because I'd like to see it go even higher, if possible. (Note: At this time, Assistant Real Property Tax Administrator Keita Jo came forward to address the members of the Committee.) MR. JO: Keita Jo, Assistant Administrator for Real Property Tax. Based on the communication, you'll see the fiscal impact we're anticipating. So, it's a$15,000 increase in the exemption amount over what is currently being experienced by individuals 80 or over. As far as revenues, we're anticipating nearly a$400,000 revenue reduction for 2024. MS. LEE LOY: Curious, because, and I'm guessing you helped prepare this sheet. The current market value ranges, you highlighted. Current market value from $5,000 all the way up to $20 million. We're going to be giving some exemptions to someone who has a $20 million home? MR. JO: Yeah, and that's that basis of our home exemption program. It runs the range of everybody who's eligible. There isn't any triggers to prohibit someone from receiving that same benefit who has a higher-valued home. It's kind of an all-or-nothing proposition. So, you're going to hit some individuals who are living in a$5,800 property, likely living in a shack that is 80-years and over, and you're going to get that$20 million individual. MS. LEE LOY: Question,just because we know this Council has done a lot of work of, you know, to our Tier 2 tax, and you know, you've landed on a number. So, is the reduction straight across? Have we done any analysis of what it does to impact those other funds? I know we've shaved off money for our homeless, our PONC. Have we done any analysis for that? MS. SAKO: I was going to say, it would have minimal impact on the homeless amount just based on the way it's calculated, 75 percent of the Tier 2, because this is for the homeowner's exemption versus the homeless which comes from the residential property class, which is typically, second homes and not from this same category. MS. LEE LOY: Oh, right, because they wouldn't have had the exemption anyway. Okay, thank you for clarifying that. Maybe I'll have an offline conversation about what threshold we can get to. Thank you both of you for being here. Page 21 FC-16 August 1,2023 Ms. Evans, again, in support. Maybe have an offline conversation with our specialists here about what we can really do to create some offset for this category. I yield. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you both of you for being here. Just wondering if we've looked at all. I've seen a lot of stories lately about our aging demographics in our County and in our State. Considering that, have we looked at all at projecting out? You know, we've got this chart here, but I'm wondering as those numbers go up, are we going to be getting ourselves in any kind of concerning position here? So, has that been looked at at all? MR. JO: We haven't looked at the demographics as a whole to see how the population is aging. This gives you a snapshot of how the homeowner's program exists and who's applying for it and their ages. I would probably say that the trigger in the future if this is something that changes the dynamic from a fiscal perspective would either to revisit the legislation and maybe make adjustments or adjusting the tax rate itself with the homeowner's tax clause. MS. KAGIWADA: Okay, I think it's going to be very hard to ever adjust this down once it's up. So, I don't really see that as a real potential for anybody who's going to be sitting here. So, yeah, I just wanted to be cognizant of the fact that we are an aging population and think about that as we look at this. I don't know if there's a way to get that information. MS. SAKO: So, you can kind of look at the breakdown that is on the left side in kind of the bar graft. So currently, in the 80-plus category, there's 5,316 parcels that, you know, are owned by individuals above 80-years-old. Then in the 75-79 category, you know, there are 4,968 coming up. We always look at the oldest person that is the owner of land. So, if it's owned by a couple, we're always taking the person that reaches that age first. So, what we can't predict is exactly when people are going to pass away. We do know that, you know,people in Hawaii live longer, and we all have family members who are well into their 90's, maybe even in their 100's. So, there's stuff they are really going to impact. But we also know sometimes when you get older, like in your later 80's, you may have to go live with your children; you may sell your property and move off island or you may leave it to your children that may be younger. Then they would no longer have this particular benefit. Page 22 FC-16 August 1,2023 MS. KAGIWADA: Okay, do we know when people say, move to assisted living and something like that and their family members are still in their home, but they may still be the person of record there? Is that something that we know or is it recorded somehow? MS. SAKO: We don't always know, but also you know, sometimes you go to assisted living just for rehab. So, we don't necessarily kick them out. Really, what we do pay attention to is the death records. Then for sure, we would have them change the ownership and the homeowner's exemption. MS. KAGIWADA: Okay, thank you. I guess my last question, and I don't know if Council Member Evans, you've looked into this at all, but is there a big difference in people's income from when they're in their late 70's till when they turn 80, generally? Did something happen where their income would necessarily go down at that time? MS. EVANS: Thank you for the question. My experience has been, there's quite a few people in their 70's that do supplemental income. They work to get a little bit of extra money. But when you get into the 80's, a lot of times just because of the physical kind of energy level, you don't tend to meet people that have second jobs or supplementing their fixed social security income. So, I just believe that the older you get, the less likelihood is they can supplement their income, which I do think a lot of people do in their 70's. MS. KAGIWADA: Okay, thank you. Thanks for answering all my questions. I yield. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Villegas, go ahead. MS. VILLEGAS: Sure. Thank you, Council Member Evans for bringing this forth and for your sensitivity to these issues for our aging demographics in our County. Thank you also to Council Member Lee Loy for highlighting something I see here, which is a discrepancy and disparity between a $5,800 home and a close to $20 million home. So, I wondered if there is capacity. I know I would feel more comfortable supporting something like this if something could be included that perhaps put a cap on the value of the home. Once again, I don't know if this goes into, not disparity; discrimination, that's the word I'm looking for. Because that just doesn't seem equitable. To me, somebody that owns a $20 million home is not at the age of 80 going to be suffering. That's also the larger tax base for the County. So, it seems like somewhere maybe there's a sweet spot for equity. Page 23 FC-16 August 1,2023 MS. SAKO: So, one of the things is the max benefit under this proposed bill is roughly $90 annually if I got all my—divide by a thousand in the right place. So, the max benefit is roughly $90. So, even the person with the $20 million home is only going to see a $90 benefit. MS. VILLEGAS: Okay, fantastic. Thank you for helping to break that down, which seems like in the long-range for the County, this isn't drastically negatively impacting our capacity to meet our own budget and cover everything we need to as a County. Is that correct? MS. SAKO: That's correct. I mean, you know, the longer you live the longer you've been on that fixed income. So, depending on the inflation rates annually, you know, that's where we tend to see people that struggle a little bit more. MS. VILLEGAS: Unfortunately, this isn't enough money to really resolve that issue, but it is. I appreciate Council Member Evans. This is kind of a step in that direction and a nod to relieving some of that pain and providing some support in a capacity that is possible in our sphere of influence here. So, thank you for helping me understand that better. Thank you, I yield. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Galimba, go ahead. MS. GALIMBA: I just wanted to say, thank you to Council Member Evans. Great idea. I think, you know, given the rising cost of living in Hawaii, this is really a small but really great thing for our kupuna. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Evans, back to you. MS. EVANS: Thank you. I appreciate all the comments. I don't know if Iat this point I have nothing further to say. So, thank you Chair. CHR KANEALI`I-KLEINFELDER: Thank you. You know, like some of my counterparts, Ms. Evans, I would suggest maybe with the willingness of the department, but I'd say up these numbers a little bit. Have some fun with it and bring forth some, you know, amendments that would actually put this into a ballpark of maybe being a little bit more than the savings of$90, especially given where our property taxes stand right now, currently. Of course, you know, with the input of both Finance Directors Sako and you know, Mr. Keito Jo, and probably Lisa Miura. But given today's discussion, I could see that that might be a positive and acceptable amendment to this bill. Page 24 FC-16 August 1,2023 MS. SAKO: Seeing that we're supportive at the current level but also there are kind of safety nets built in. So, the lower value your home, your minimum tax is actually lower value as well. So, for those who really can't afford and are living paycheck to paycheck, we believe those are there. You know, our homeowner's is at our lowest rate basically, that they're paying taxes. So, it's not the same as the residential and the Tier 2, and all of those other factors that you know, other people pay as well. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Sako You know, we have Ms. Strance in the back. I did notice you. If you can come up actually. I know you did a lot of walking today, because I watched you walk from the other building all the way over here. As I was driving by, I did applaud you walking over today, though. You know, I have a question for you. Ms. Kagiwada made a good statement, I think. You know, and looking at the balance between a $20 million-home and a$5,800-home, valuation wise. I'm looking at this Section (d) A taxpayer who is 60-years-of-age or over. A taxpayer, a pretty broad definition. Have you or could you if you know,provide some sort of recommendation for us on whether that word could be changed to a resident? I don't know if this would be in line with property tax, and I don't know what the definition of taxpayer is off the top of my head, but I'm guessing it's defined in this section? MS. SAKO: So, to qualify for the homeowner exemption, you must be a resident of the island for nine months or more. The Code just has to be read in totality. CHR KANEALI`I-KLEINFELDER: So, okay, that's what I was looking for. So, that is already built in and must be nine months or more. Is that the definition of what a resident is? Because I've heard it put differently before. (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) MS. STRANCE: I believe there's a definition in the Code. CHR KANEALI`I-KLEINFELDER: In our Code? MS. STRANCE: Yes, and it may or may not be exactly the same as the IRS (Internal Revenue Service) Code, for example. So, it's been a while since I compared them. At one time, I thought the language was a little bit different, and then it was a little bit different in the STVR (Short-term Vacation Rental) Code as well. So, we can compare them, but usually in most sections there's a definition. Page 25 FC-16 August 1,2023 MS. SAKO: Then part of the there's another section of the Real Property Tax Code that also says you have to file resident tax returns within the State of Hawaii as well. CHR KANEALI`I-KLEINFELDER: Okay. I wonder if all of those are in alignment, because I can see that. I mean, I'm guessing a $20 million home may not be someone who lives here. I'm not saying that they don't, but that it could possibly be one of our snowboarders who comes in and spends a portion of the year but not the full year, that's why I'm asking the question. MS. SAKO: But we also check other jurisdictions as well. So, they're only getting one homeowner's exemption nationwide. CHR KANEALI`I-KLEINFELDER: Okay, that is helpful. Thank you. MS. STRANCE: What she said. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Strance. Okay, well Ms. Evans, I think you can feel where the Council is leaning on this as well as the Administration. I do appreciate you bringing this forward. One last question, Mr. Jo. You know, if someone reached out via testimony and said, given that some of these folks, you know, as we get older people pass on. But when you have a widow, this applies to the widow as well, correct? MR. JO: So, if the widow is on the title and has applied for a home exemption with us as a secondary applicant, the widow or widower will continue to receive the homeowner's exemption, based on their age. CHR KANEALI`I-KLEINFELDER: Okay, is there any kind of safeguards ensuring that they do get on the program? Because I hear a lot from my community. Oh, this is happening, this is happening, my taxes are out of control. And realize that they'd never actually applied for the different programs that were available. But for our senior population, if we're not reaching out to them, they may just be unaware or unable to actually proceed with getting this done. MR. JO: So, one of our big pushes is to educate our real estate community as well as Escrow officers to educate their clients on insuring that an individual who is taking permanent residence at that home meets all the criteria and files with our office. We have meetings throughout the year with various community groups as well to get the word out. In addition, when we send out our assessment notices, there is information on the homeowner's exemption as well as other exemptions including a disability exemption that we provide as well. So, there's a lot of work to reach out to the Page 26 FC-16 August 1,2023 community to make sure that everybody's educated. The people that we're working alongside, you know, like the realtors and escrow officers, that they're educating as well. So hopefully with that, we capture everybody and ensure that everybody's in the right bucket as far as receiving the benefits. CHR KANEALI`I-KLEINFELDER: Okay, thank you. That's very helpful. With that, sorry, Ms. Lee Loy, go ahead. Your light. MS. LEE LOY: Oh, I do have one more. Thank you. Listening to Ms. Kagiwada, this spillover, right? So, you've given us a snapshot of time right now. But clearly, we have, you know, another 5,000 owners in the 75 to 79 category, which at some point will spillover. Have you done any of those projections or extrapolated any information from that? MR. JO: We have not. However, when you take a look at the homeowner's program, there's a 3 percent cap that's built in. So, even though we've projected a number of 400,000, that's based off of the values as of today. The actual net taxable value is going to likely increase by 3 percent, which is going to offset this additional exemption. So you know, the further along that you move, the less of a benefit will be received. Makes sense? MS. LEE LOY: Then this takes effect next tax cycle. MR. JO: Correct. So, the January 1st, 2024 date will impact the July 1st bill that people receive. MS. LEE LOY: Keita,just asking out loud, because we all know there's different times when we have to move legislation related to real property tax because of the timing elements that you have. What kind of window do we have with this particular bill right now? MR. JO: So, there was a bill passed during the last legislative session last year which provided some additional breaking points for the homeowner's exemptions. So, we've already built in that functionality in our assessment system. So, for us to flip the switch is very minimal. So ideally, we'd like that to happen in the next few months in order for us to meet that deadline. MS. LEE LOY: Thanks, it's always so complex this area, right. Thanks Chair for the latitude. CHR KANEALI`I-KLEINFELDER: Thank you. Seeing and hearing no further discussion, we do have the motion on the floor is to forward Bill 59 to Council with a favorable recommendation. Council Members, all in favor? Page 27 FC-16 August 1,2023 Vote on Bill 59: The motion to recommend passage of Bill 59 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. CHR KANEALII-KLEINFELDER: Thank you very much for your time this morning and moving on to our last bill. Bill 60: AMENDS ORDINANCE NO. 23-50, AS AMENDED, THE OPERATING BUDGETFOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2024 Appropriates revenues in the Federal Grants —Climate Pollution Reduction Grant account($350,000); and appropriates the same to the Climate Pollution Reduction Grant account to develop a Priority Climate Action Plan and a Comprehensive Climate Action Plan in coordination with the State Climate Change Mitigation and Adaptation Commission. Reference: Comm. 381 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 60 on first reading. Seconded by Ms. Galimba. CHR KANEALII-KLEINFELDER: Council Members, any discussion? Hearing and seeing none, motion is on the floor, all in favor? Vote on Bill 60: The motion to recommend passage of Bill 60 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. Page 28 FC-16 August 1,2023 ADJOURN- There being no further business, at 11:40 a.m., Mr. Inaba moved to MENT: adjourn the meeting. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder— 8. Noes: None. Absent: Committee Member Kimball— 1. Excused: None. CHR. KANEALI`I-KLEINFELDER: We are adjourned. It is 11:40 a.m. Thank you. Approved: 114) 23 Mr. Matt Kaneali`i- leinfel'er, Chair (D e) Finance Committee MK/dt Page 29