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HomeMy WebLinkAboutMIN FC 2025/03/06 (2022-2024)Committee on Finance 5` Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii 96720 March 6, 2025 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 2:24 p.m., in the Council Chambers, Hilo, by Mr. James E. Hustace, Acting Chair. ROLL CALL - Present: Mr. James E. Hustace, Vice Chair Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member Ms. Heather Kimball, Member Mr. Dennis "Fresh" Onishi, Member (came in later) Ms. Rebecca Villegas, Member (videoconference from Kona) Absent & Excused: Mr. Matt Kdneali`i-Kleinfelder, Chair Ms. Ashley L. Kierkiewicz, 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.) COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 23.5: REPORT OF FUND TRANSFERS AUTHORIZED: JANUARY 1 —15 2025 From Acting Controller Wilson Crider, dated January 30, 2025. Vote on Comm. 23.5: Mr. Inaba moved to close file on Comm. 23.5. Seconded Filed by Ms. Galimba and carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kimball, Villegas, and Acting Chair Hustace — 6. Noes: None. Absent: Committee Members Kdneali`i-Kleinfelder, Kierkiewicz, and Onishi — 3. Excused: None. FC-5 ACTING CHR. HUSTACE: Next item, please. March 6, 2025 Comm. 23.6: REPORT OF FUND TRANSFERS AUTHORIZED: JANUARY 16 — 31 2025 From Acting Controller Wilson Crider, dated February 6, 2025. Motion to Close File: Mr. Inaba moved to close file on Comm. 23.6. Seconded by Ms. Kagiwada. ACTING CHR. HUSTACE: Any discussion, Council Members? MS. GALIMBA: Could I ask a question? ACTING CHR. HUSTACE: Please, Ms. Galimba. MS. GALIMBA: Thanks. Director Nakagawa, I think you would be the one. don't see police. It's this first one —didn't recognize you guys. (Note: At this time, Police Accountant Hauoli Aiona came forward to address the members of the Committee.) MS. AIONA: Good afternoon. Hauoli Aiona, accountant for the Hawaii Police Department. MS. GALIMBA: Thank you, Ms. Aiona. I just wanted to ask about the first item here, the transfer of the money from the Ka`u Police, which seems to happen every year, but this year seems to be an especially big transfer. And I did see that we're potentially adding positions to Ka`u. So, I wanted to ask if you could talk through that. MS. AIONA: Sure. So this transfer in particular is for the $500,000. Ka`u, I am sure it was $150,000, and the reason for that is the vacant positions. So when we run the recruit classes, the recruit classes salary and wages (S&W) come out of our administration until they finish their FTO or Field Training, then they get assigned to the different districts. So for the time being, while they're doing their training, the administration will hold their S&W. So what we do is we take from the vacant positions within in the budget to fill that and pay the S&W, and that's why we need to do the transfers. We can't do it beforehand because we don't know how many recruit classes we'll exactly have and how many recruits will be in each class. MS. GALIMBA: So, will those then recruits then be assigned to Ka`u? MS. AIONA: Yes. So once the finish their FTO, field training, they graduate, and then we assign them to their permanent districts. MS. GALIMBA: Okay. Fantastic. Looking forward to that. Thank you. Page 2 FC-5 March 6, 2025 ACTING CHR. HUSTACE: Thank you, Ms. Galimba. Thanks, Ms. Aiona. Any other questions from the Council? Mr. Clerk, Mr. Onishi has returned to the chambers. Hearing no other discussion, all those in favor? Vote on Comm. 23.6: The motion to close file on Comm. 23.6 was carried by the Filed following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Acting Chair Hustace — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Kierkiewicz — 2. Excused: None. Comm. 23.7: REPORT OF FUND TRANSFERS AUTHORIZED: JANUARY 16 — 31 2025 From Acting Controller Wilson Crider, dated February 12, 2025. Vote on Comm. 23.7: Mr. Inaba moved to close file on Comm. 23.7. Seconded Filed by Ms. Kagiwada and carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Acting Chair Hustace — 7. Noes: None. Absent: Committee Members Kdneali`i-Kleinfelder and Kierkiewicz — 2. Excused: None. Comm. 24.4: REPORT OF CHANGE ORDERS AUTHORIZED: DECEMBER 16 — 31 2024 From Finance Director Diane Nakagawa, dated February 13, 2025, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. Vote on Comm. 24.4: Mr. Inaba moved to close file on Comm. 24.4. Seconded Filed by Ms. Kagiwada and carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Acting Chair Hustace — 7. Noes: None. Absent: Committee Members Kdneali`i-Kleinfelder and Kierkiewicz — 2. Excused: None. Page 3 FC-5 March 6, 2025 Comm. 73.1: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED JULY 31.2024 From Finance Director Diane Nakagawa, dated February 14, 2025, transmitting the above report pursuant to Section 6-6.3(h) of the Hawaii County Charter. Motion to Close File: Mr. Inaba moved to close file on Comm. 73.1. Seconded by Ms. Kagiwada. ACTING CHR. HUSTACE: Questions; discussion from the dais? Mr. Inaba, please. The floor is yours. MR. INABA: Thank you, Chair. Director Nakagawa, I know we're a little behind. Can you just give us an update as to when we're going to get closer. I know your office and department have been working on it. So, just a preview of what's to come. (Note: At this time, Finance Director Diane Nakagawa and Acting Controller Wilson Crider came forward to address the members of the Committee. ) MS. NAKAGAWA: Of course. Good afternoon. Diane Nakagawa, Finance Director. I'd also like to introduce to you our Acting Controller Wilson Crider, who has stepped into this role as we recruit for our Controller position, which is also one of our challenges is our resources. We are catching up. We are in the tail end of our audit, wrapping things up and I think Wilson has a status report on when you'll get some additional monthly budget status reports that we can get back on track. MR. CRIDER: So yeah. August should be close, so those should be available — ACTING CHR. HUSTACE: Would you just pull the microphone a little closer, you can pull the whole thing closer. MR. CRIDER: Okay. Can you hear me now? ACTING CHR. HUSTACE: Yes. MR. CRIDER: So, yeah. August has closed and those should be to you guys shortly and then the staff is working on these additional months. It takes about a week once we actually close a filing period to actually process all the information. And there's only two staff members that are working on this. So, we hope to have through November by the time April rolls around and then we're just going to keep rolling through until we get caught up. MS. NAKAGAWA: And I will add that, you know, a lot of what we do is manual around the County. And so we are investing heavily on technology so Page 4 FC-5 March 6, 2025 when we don't have the resource, at least the technology is advanced enough to be able to run reports that such a cumbersome process should be a lot easier as we get these new things in place. So, you know, one of the things that Wilson mentioned is that our staff is also working on implementation of a financial system at the same time. So there is a lot going on but it's all to get us to a much better place. And so efficiency is around the corner. We're anxious as I know you are as well to get closer. MR. INABA: And if you could put a date optimistically, that we'll be getting these monthly budget status reports, like within the month or at least just be up to only two months behind, when would that be? MS. NAKAGAWA: So it's a little more complicated than just the technology. The reason that the initial July reports are so late; it is late, is because our accounts team is going through closing the entire year. So that will have a delay. What I would like for our team to propose something that can be done quicker, right. So I think what Wilson is talking about is there will continue to be some delay until the year is closed, but there might be something that the system can run that's a little quicker. So they're working on that. That's also a request that we're looking into. But it's always that first part. So normally the audit, if we're on time, is done in December. And that's officially when we can close the books on the previous year. So that's why you get the July normally, even on time, is in January. But I understand the need for it faster, so we can see if there's something else the system can do. MR. fNABA: Okay. Yeah. So ultimately, besides the end of year, when we're talking about just a normal month to month, when do you anticipate that you folks will be at a place that we're only a month or so behind in the reports we're receiving? MS. NAKAGAWA: I think it's going to take about a year. MR. INABA: Okay. MS. NAKAGAWA: To get through implementation, get our staffing in place from the Controller down, and get really on track and get some training. I wish it was sooner, and if it can be we'll push. But I think it's going to take that long to put some of these processes in place. MR. INABA: Thank you. And we know you're working on it. So we appreciate the honesty and know what we have to look forward to. So thank you, both. MS. NAKAGAWA: Thank you. MR. CRIDER: Thanks. I just wanted to add one other thing. In addition to the year in closing, the other big issue is we have to reconcile all the accounts. And Page 5 FC-5 March 6, 2025 so one of the big reconciliations is the RPT (Real Property Tax). So, we've got those biannual billings, so in February and August, that reconciliation is much more involved than normally. So those particular months, it may take a little longer to actually close those out to produce the books. ACTING CHR. HUSTACE: Thank you, Council Member. Any other questions from my colleagues? Thank you, Director. Thank you, Mr. Crider, for stepping into the role. Appreciate you. All those in favor of closing file on Communication 73.1, please say "aye." Vote on Comm. 73.1: The motion to close file on Comm. 73.1 was carried by the Filed following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Acting Chair Hustace — 7. Noes: None. Absent: Committee Members Kdneali`i-Kleinfelder and Kierkiewicz — 2. Excused: None. Comm. 143: ANNUAL REVENUE REPORT: JULY 1 2023 — JUNE 30 2024 From Finance Director Diane Nakagawa, dated January 31, 2025, transmitting the above report pursuant to Section 2-12.6 of the Hawaii County Code. Motion to Close File: Mr. Inaba moved to close file on Comm. 143. Seconded by Mr. Onishi. ACTING CHR. HUSTACE: Council Members, any questions, comments, discussion? Checking in Kona, any questions? MS. VILLEGAS: No, thank you. ACTING CHR. HUSTACE: Ms. Kimball, please. MS. KIMBALL: Yeah, thank you. Director, thank you. I wanted to ask about the TAT (Transient Accommodations Tax) collections from the last fiscal year, or the year covered by this report. How is that compared to the previous year; do you recall? (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Sure. Just to clarify, so this report should have a total revenues for fiscal year 2023 and 2024. Are you asking about the current year? Sorry. Page 6 FC-5 March 6, 2025 MS. KIMBALL: The year before. Okay. (Note: At this time, Acting Finance Controller Wilson Crider came forward to address the members of the Committee.) MR. CRIDER: So yeah, for that fiscal year 2022 is only for six months. So I believe it's around $13 million. MS. KIMBALL: Okay. That MS. NAKAGAWA: We can get that for you. MS. KIMBALL: No. Actually that explains it. I was thinking there had been a jump but there was not because — MS. NAKAGAWA: It wasn't a full year. MS. KIMBALL: It wasn't a full year that was included. MS. NAKAGAWA: Yeah. MS. KIMBALL: Okay. And then, you know, I know that we had some conversations about this prior but, you know, a lot of these fees have been set now, 10, 20, 30 or more years old. Is the administration planning on looking at some of these and making sure that we're matching inflation with some of these charges? I think that we're probably in some cases paying more out of pocket than we are charging folks to do the work. MS. NAKAGAWA: Yes. And we've had this conversation. I can say I can't speak specifically for all the departments, but for Finance in particular our Vehicle Registration and Licensing, we are looking at our fee structure and would like to come forward to propose some increases particularly in those areas that we are charging less than we are paying. For instance, in our plates and so what we're looking at is to make sure that we cover our costs and also that we are in line with the other counties as well. So when we do come forward we'll show those comparisons to see we're coming forward with fair increases to mainly cover our costs. But yes, we're looking at it. MS. KIMBALL: Great. This has been actually a really helpful and informative report in general, but again it suffers from the sort of lack of visual display that I think might be useful for a lot of us to kind of drill down on it. But hopefully that is something that is part of the new system is the ability to look at this particular subset of information in a more meaningful way. MS. NAKAGAWA: We are at the point in the implementation of the system, the initial part is really the nitty gritty of all of our financials, getting that information Page 7 FC-5 March 6, 2025 in there. So we're finally at a point where we can start talking about visual representation of the information. So yes, we are continuing those discussions as well. If you have suggestions on this particular report, happy to, you know, take a look at those. I know we did add, at Chair Inaba's request, the percentage change and we can continue to do that. So if there's changes like that that make it helpful to understand the data we'd be happy to do that. MS. KIMBALL: Okay. I do have some ideas on that I'd like to share. MS. NAKAGAWA: Okay. MS. KIMBALL: Alright. Thank you. I yield, Chair. ACTING CHR. HUSTACE: Thank you, Ms. Kimball. Any more questions? Seeing none, all those in favor of closing file on Communication 143, please say aye. Vote on Comm. 143: The motion to close file on Comm. 143 was carried by the Filed following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Acting Chair Hustace — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Kierkiewicz — 2. Excused: None. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 92-25: AUTHORIZES THE ACCEPTANCE OF A DONATION OF SERVICES TO PURSUE FEDERAL AWARDS AND ASSISTANCE The donation of supportive, consultive, and technical services from Ulupono LLC, with an estimated value of $90,000, would be used by the Office of Sustainability, Climate, Equity, and Resilience in its pursuit of federal awards and funding opportunities. Reference: Comm.160 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 92-25. Seconded by Ms. Kagiwada. Page 8 FC-5 March 6, 2025 ACTING CHR. HUSTACE: Council Members, any questions? We also have Administrator here in the office if you have any particular questions on this. Yes. Ms. Kimball. MS. KIMBALL: I was just going to ask Administrator Acasio to come up and give us an overview. It's actually interesting. This came up when we were in DC, how come Hawaii County hasn't signed this MOU (Memorandum of Understanding) yet? And now we are actually moving forward on this. So if you could just give us a brief overview of what this will enable us to do with Ulupono? (Note: At this time, Sustainability, Climate, Equity, and Resilience Administrator Laura Acasio came forward to address the members of the Committee.) MS. ACASIO: Thank you. Laura Acasio, Office of Sustainability, Climate, Equity, and Resilience (OSCER). So my understanding is, first of all, I'd just like to mahalo Ulupono for offering this services consultative technical supportive services. And basically, their focus of course is quality of life around helping communities become more self -resilient and self-sufficient through locally produced food, renewable energy, transportation, as well as management of our fresh water. So I just wanted to mahalo them for this opportunity and for you folks to look through it and make decisions accordingly. The idea is that, for example, I just recently before this meeting got off a call with our EPA (Environmental Protection Agency) representative because we now have some access to communication with them. We're finding that it's very challenging in what they are able to share in terms of specifics around tracking particular grants. So this is an opportunity either for that particular grant or others coming forward to build capacity within our County working with different departments on specifically probably the estimate is $90,000 specifically because they are looking at one larger grant and another smaller grant, or perhaps three small grants. I think a lot of that is still up to be determined and what grants it can be used for. But the idea would be to be building more capacity within our County in administering a lot of the technical sides and coordinating. MS. KIMBALL: So if I just may share with my colleagues here, you know, what some of the other counties are doing is working with Ulupono to help draft these grant applications. They're providing the technical support again around those four areas that Administrator Acasio mentioned and then working with a DC (Washington, D.C.) lobbying firm to actually go after those funds either through congressionally directed spending or other specifically designated pots of money. In conversations we had over there we are kind of trailing in our use of both Ulupono's expertise but also the expertise of some others. So it's something I'd like to talk with you about and the Mayor about making sure we have a more Page 9 FC-5 March 6, 2025 significant presence over there and making sure that we're actually going after the right kinds of programs. One of the things that I was told is we are applying for the wrong programs with grants that could be funded through another program. And so, just doing that is in your role as OCSER Administrator, you know, coordinating all the cats, making sure the cats are going after the right projects with the right grant I think is something that we need to look at improving in the County. So just sharing that. MS. ACASIO: Yeah. I look forward to connecting on that. MS. KIMBALL: Alright. Thank you. I yield. ACTING CHR. HUSTACE: Thank you, Ms. Kimball. Ms. Kagiwada. MS. KAGIWADA: Yeah, just a quick question because I wasn't sure. Are they also helping with grants that we already have but maybe have not gotten the funding for in our hot little hands yet? MS. ACASIO: That's a really good question that I would probably have to, in terms of confirmation, get back to you on. MS. KAGIWADA: Okay. MS. ACASIO: As far as my understanding is it's also in pursuing new grants. MS. KAGIWADA: It's mostly about that? MS. ACASIO: Yeah. MS. KAGIWADA: Okay. Okay. MS. ACASIO: Although we do, I mean, again, I don't want to misspeak in terms of not having been in all of those conversation. MS. KAGIWADA: Okay. We can touch bases on a couple after. Thank you so much. MS. ACASIO: But I'll note your question. MS. KAGIWADA: Okay. And thank you to your staff, Shelly Ogata, for coordinating the grant as well. Thanks. MS. ACASIO: Yeah. Page 10 F Vote on Res. 92-25 (Approved) IA"D USISHWI N MENT: Approved: Mr. Matt KaneaRN,- Finance Committee MK/tk March 6, 2025 ACTING CHR. HUSTACE: Thank you, Ms. Kagiwada. Any further discussion, questions? Nothing about hot hands or cats today? Alright. Thank you, Administrator. Thank you for your time. All those in favor of forwarding Resolution 92-25 to Council with a favorable recommendation, please say "aye." The motion to recommend adoption of Res. 92-25 was carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Acting Chair Hustace — 7. Noes: None. Absent: Committee Members Kdneali`i-Kleinfelder and Kierkiewicz — 2. Excused: None. There being no further business on our agenda today, Acting Chair Hustace adjourned the meeting at 2:48 p.m. Thank you very much. , Chair MIAS-- (bate) Page 11