HomeMy WebLinkAboutCOM 0648.006 2000-2002 15-~7~~ Popaa Strut ®~/~55~~~fi1
Pah~~, 967~~ ema@!: d®n~~al~ha.~et
June 2002
To the Haonraii~ounty Council for the June 5th muting.
attached is a copy of my testilmony and beloonr are some charts that support
my testimony.
Residential sales prices for West l-lao+vaii have increased a average of ~®1e~ per
year for the past five years according to data provided by Ricky Cassiday.
~~i~ ~~l~ P~~c~~
$300 R~~I`~
$250 ~ ~ ~ ~ ~
.
,
n
$200 -
$150
'•Kohala
$100 .
96 9~ 98 99 00 O1
Tax revenues slumped ~rhile sales prices and building permits mere booming.
~v~~u~
95,000,000 '
90,000,000 I
.:,,.:.::.s.::M
85 000 000 ~:..<...,«.< ee
f. .
80 000 000
75 000 000
70,000,000 s~-~-::,. . :..~..w..w::H~~,.:...::.,~::,;~:,...,~ , ....M..~ ..,,...:r....:..~ .~.a
96 97 98 99 00 01
~ ~
c~ ~ ~
dig Island building permits from 1992 to 2001:
9~~~fiJ ~ lJI1~~I~ F~~~
$5,000,000,000 -~-M.. !
><>:f
:<:;F
000 000 0 0 »::>:<<:::<::>::::>::::>::>::::>:::<:::::»:...
$ 0 :<:<:<::.:.~:.~.k
:
3 000 000 000
2 000 000 000
$ ,
1
000 000 000
$ ,
0
N i~'3 ~ 111 B® 00 ~ C~ rat N M Ci' ~ ~ N ~ ft~ Q ~
~ ~ Op Of5 ~ G6 00 06 ~ C31 ~ O
s <31 ~ ~ ~t ~3 ~ p O
~ ~ ~ ®1 ~ ~ CY1 01 ®1 ~1 d1 01 ~1 Q1 O1 ~5 ~"s ~1 O
~R s®s v~ vAs rAS ri a^E v-4 s-S s^d s~E vd rt r-0 a^d r~ e^7 a~4 N N
ANNUAL VALUE ACCUMULATED VALUE
For the past eight years the annual value of building permits has increased
by 10.5®/o per year. Oef nitely the sign of a robust economy.
The big question is 4Nhy did tax revenues slump when the economy was on
the up swing.
T'he answer em~ O~ssessed values did not keep pace with the market.
The administrations failure to do it's job has put this council in a bad
position. if you approve the proposed tax increase you will be the bad grays in
the eyes of the voters and if you let the mayor's proposal go through you will
definitely be the bad guys.
See my testimony for the solution. You can be winners.
Oon Jacobs
_ _ _ _ _ _
~~N 2®~2, T'ES°Ti~iVY fF~RE fii~E 9~A~iiA?li CQIJIli°fY ~f3~NCli~
I oppose the proposed tax increase.
~ fihe assessed value of land & buildings has not kept pace with actual
market value for at least the past decade.
~ Island wide building permits have averaged X300 million per year for the
past 10 years.
~ Land sales prices for Hamakua, North & South Kohala have increased S.5%
per year for the past seven years.
~ Residential sales prices have skyrocketed in West iiawaii.
Yet, according to the ~Oawaii County Finance ®epartment, the total assessed
value of real estate for the Sig Island has increased less than per year
for the last decade. That's less than ~2~0 million per year. Somehow these
number just don't add up.
It would appear that Hawaii County may have lost an average of about ~ 10
million in tax revenues per year for at Least the past decade. If assessed
values had kept pace with market values we would have a large budget
surplus today instead of a shortfall. We could be talking about cutting taxes.
Pare the budget to the bone and ®niv ali~w a t~ i~~[~ r ®ne,..~~~s".
(Demand that the administration take action to bring all assessed values up
to true market value within the next eight months. No more last minute
band aid budget solutions.
Remember The l~,dministration caused the revenue shortfall by failing to
update assessments annually as required by the l~awaii County Code.
Oon Jacobs
965-0361