HomeMy WebLinkAboutCOM 0589.002 2002-2004 r 1.
Mvv Or h1
AARON S.Y. CHUNG Phone: (808) 961-8396
c~<,rure';~niemher ~d,~;Q x: 808 )61-891<
APR lr) (a!'1 9 ~ I ) `
1r~ Or~M~'~' 1'~
GC.)L. ,
HAWAII COUNTY C'OUNC'IL
('uunly rJ7fawai'i
l[nuzn I ('our+h~ B¢ildir{q
S aupuni ,Strert, .Suilr ,_'09
{liln, Ho e'uC'i 96 -_'b
April 16, 2003
TO: .lames Y. Arakaki, Chair, and Council Members
FROM: Aaron S. Y. Chung, Chair ,
Committee on Finance
SUBJECT: Vehicle Weight Tax Bill 260, Draft 2
Attached for your review and consideration please find a Draft 2 amending the bill to establish new
rates for vehicle weight tax to fund road repair, resurfacing and Mass Transit Agency services in
Hawaii County.
Please note that this proposed amendment raises the weight tax for passenger vehicles and other
vehicles by one-half cent. As shown in the attachment spreadsheet exhibit, this increase enables the
Department of Public Works to substantially meet its goals. It also provides needed operating funds
for expanded Mass Transit routes and pursuant to a recent $2.4 million federal grant for which
Senator Inouye worked so hard to assist us to enhance our public transportation services.
I wish to point out that our county"s vehicle weight tax rates have long been far less than those of
other counties in Hawaii. In fact, we have not amended these rafts since 1979, a full quarter
century. While the imposition of any tax increase is not a popular option, these taxes are dedicated
to road repair and safety and improved public transportation. These are core and essential county
services
For drivers of standard passenger vehicles weighing 2.500 pounds, this rate increase amounts to
$12.50 annually. This is far less onerous than a fuel tax increase that could amount to substantially
more for many of our hard-working commuters and small businesses throughout our island.
Thank you for your thoughtful consideration of this proposal.
AC/rf
Attachment
C ~ ~ O , 1J . Z ~$q Z?
Comm. N~f
Ref. To:
Ref. Uate
EXHIBIT A-PROPOSAL
DRAFT 2
VEHICLE WEIGHT TAX INCREASE PROPOSAL
INCREASE OF .005/.01
FY2005
APRIL 12, 2004
% of Tot@I
Ave Weigh fhCI~BBSe
vehicle M Tax Proposal * 2003 Count # (1bs) FY05 6 months FY06/FY07 FY06/FYO~
.0051rrcrease from .005 to .Ot $ $
Passenger - 135,437 3,000 1,015,777.50 2,031,555.00
Motorcycle (Min. $6.00) 3,194 200 9,582.00 19,164.00
.01 Increase from .01 to .02
Truck 11,003 7,000 385,105.00 770,210.00
Trailer 7,935 3,000 119,025.00 238,050.00
Total tncrease 1,529,489.50 3,058,979.00 100
Expenses"'. 11 Months FY05 6 months FY06/FY07
Sg,W Position $ $ $
S. Hilo (5) Lab II 115,885.00 63,210.00 126,420.00
N/S Kohala (2) Lab II 46,354.00 25,284.00 50,568.00
N/S Kona (7) Lab II 162,239.00 88,494.00 176,988.00
Kau (2) Lab II 46,354.00 25,284.00 50,568.00
Puna (13)Labll 301,301.00 164,346.00 328,692.00
Total S&W (29) Lab II 672,133.00 366,618.00 733,236.00
Equipment Equipment
S. Hilo (1) 6-Pass Van 40,000.00
N/S Kohala (1) 6-Pass Van 40,000.00
N/S Kona (1) 6-Pass Van 40,000.00
Kau (1) 6-Pass Van 40,000.00
Puna (3) 6 Pass Van 120,000.00
Total Equipment Total (7) 6 Pass Van 280,000.00
Fringe Benefts 59.34% 217,551.12 435,102.24
Small Tools $100/Lab II 2,900.00 2,900.00
Equipment Repairs $1,000/Egpt 3,500.00 7,000.00
Fuel/Lubricants $2,000/Egpt 7,000.00 14,000.00
Equipment Parts $1,000/Egpt 3,500.00 7,000.00
Total Expenses 881,069.12 1,199,238.24 39.2
Revenues in Excess of Expenses for Highways 648,420.38 1,859,740.76
Mass Transit ($1,640,000-$200,000 Council Social Service Grants)/2**` 720,000.00 1,640,000.00 53.6
Revenues in Excess of Expenses after Council Grants (71,579.62) 219,740.76 7.2
* 2003 Count and Average Weight obtained from the Department of Public Works
Communicatin 569.6 from the Department of Public Works
***Mass Transit provides for Council's Social Service Grants