HomeMy WebLinkAboutCOM 0208.001 2004-2006 .~Jrtr or N
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Hatry Kim Dixie Kaetsu
Mayor
Managing Director
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o~'w~+ Fl l~ it l ~ biter L.1T~ndricks
Deputy Managing Director
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25 Aupuni Street, Room 215 Hilo, Hawaii 96720-4252 • (808) 961-821 I Fax (808) 961-6553
KONA: 75-5706 Kuakini Highway, Suile 103 Kailua-Kona, Hawaii 96740
(808) 329-5226 Fax (808)326-5663
April 17, 2005
The Honorable Stacy Higa, Chairperson, and Members
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Finance Committee Agenda for April 19, 2005
Bill 78, Relating to Public Access, Open Space, and Natural Resources Preservation
Fund
Dear Chairman Higa and Council Members:
Thank you for the opportunity to comment on Bi1178. This Bill would create a special fund to
accumulate funds to be used for acquiring lands or property entitlements to essentially
preserve the public's access to and enjoyment of public lands and open space.
While I understand the need to be proactive about preserving our precious lands for future
generations, there are several provisions in Bill 78 that I cannot support.
Bond funds. Section 2-225(b)(1) of this bill provides that the fund shall include, "the
proceeds of any general obligation bonds, authorized and issued for the purposes of this
article." According to our Bond Counsel, who is the party responsible for advising the
County on the legality of our bond issues, issuing bonds for the purpose of acquiring property
at some future date could be considered a "premature issuance" and would certainly raise
arbitrage and tax exemption questions. The County's bond rating and reputation is important
to our fiscal well-being, and I am sure that you will agree with me that we should not do
anything to jeopardize this.
This does not preclude bond funds being used for land acquisition, but it does necessitate that
the land be identified and a site specific appropriation be in place before bond funds can be
issued for or used for this. This is consistent with my position of support for the appropriation
of funds for the acquisition of land at Honu`apo (Bill 53.)
Percentage of real property tax revenues. Section 2-225(c) of this bill provides that two
percent of real property tax revenues annually shall be appropriated to this fund. This cannot
be supported by my administration. There are so many other responsibilities, needs and
priorities of the County government, and to set aside a fixed percentage of property tax
Comm. No. Z~ g' I
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Ref. L'nte
Hawai`i County is an equal opportunity provider and employer.
April 17, 2005
The Honorable Stacy Higa, Chairperson, and Council Members
Page 2
annually is not advisable. I suggest the same type of language that was included when the
Disaster and Emergency Special Fund was created, where an annual appropriation of at least
$100,000 is required to be made. For example, last year the minimum $100,000 was set aside
for this current fiscal year. This year, for FY2005-06, we are proposing $1 million for this
fund because the fiscal situation allows this after consideration of other priorities. To
maintain needed services and our fiscal health, this type of flexibility is required.
Recommendation. I can support the creation of a special fund for the purpose of providing
public access, open space, and natural resources preservation. This fund can be valuable in
providing a place where private funds, grant money, and County appropriations can
accumulate. However, placing bond proceeds in this fund is not advised by our Bond
Counsel. In addition, requiring a percentage of property tax revenues to be deposited annually
is not supported as a matter of policy. Instead it is recommended that a minimum
appropriation of $100,000 annually be established. Procedurally, when a pazcel of land is
identified as worthy of acquisition, a capital appropriation should be initiated. Funds from
this special fund can then be transferred to the Capital Projects Fund to be used in part or in
full for the purchase of this land.
Please feel free to contact me or Finance Director William Takaba if you have any questions
on this matter.
Alo a,
W~^
Harry
KiG
MAYOR
cc: William Takaba, Director of Finance