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HomeMy WebLinkAboutCOM 0063.001 2006-2008 ~~Y Or N, Harry Kim ~,c~ 6~% William Takaba Mayor ~ Director Nancy E. Crawford ..J,r. oi~M~~~` Deputy Direclor County of Hawaii Finance Department 25 Aupuni Street, Room 118 • Hilo, Hawaii 96720 (808) 96I -8234 Fax (808) 961-8248 n.: F._> G> l7 ~ January 11, 2007 C;, Pete Hoffmann, Chairman, and rn Members of the Hawaii County Council I. Hawaii County Council 25 Aupuni Street ~ Hilo, HI 96720 rv - cn Subject: Bill No. 19, Draft 2, for an Ordinance Amending the Chapter 2, Article 42, Hawaii County Code 1983, Relating to the Public Access, Open Space, and Natural Resources Preservation Fund The administration requests that the enclosed Bill No. 19, Draft 2, be taken up by the Council Finance Committee when it acts on Bill No. 19. Bill No. 19 in its present form amends Chapter 2, Article 42, by specifying the exact dates that deposits will be made to the Public Access, Open Space, and Natural Resources Preservation Fund; by including revenues from the current fiscal yeaz (beginning November 8, 2006); and by requiring the Treasurer to invest all monies deposited into the fund in a conservative interest- bearing account or accounts. Bill No. 19, Draft 2, requires the deposit of revenues into the Public Access, Open Space, and Natural Resources Preservation Fund twice each year in coordination with the collection of real property tax payments without specifying exact dates. We believe the Department of Finance should retain the flexibility to determine when these deposits are made. There may be times that deposits aze needed sooner, should a land purchase require more money than what is available in the fund at the time. We also believe that revenues (2% of real property tax revenues) generated should accrue from July 1, 2007, and have proposed this change in Bill 19, Draft 2. Real property tax revenues for this fiscal year are already committed and any transfer of revenues out of the General Fund will require changes to our operating budget. Currently, cash is invested for all special funds, including the Public Access, Open Space, and Natural Resources Preservation Fund. All interest and investment income eazned from these investments is deposited in the fund that earned them. The type of investments allowed1are ~is , ~I e a ~ Comm. IVo. J• 1LJJI~ 1 Ref. To: ~r~~~ FCi Raf. Gote ^,1,H~; t R ann~ Pete Hoffmann, Chairman Page Two January 11, 2007 governed by Section 46-50, HRS, which was adopted by the County of Hawaii Resolution No. 113-01. As noted in the HRS and the Resolution, the Director of Finance (not the Treasurer) is responsible for managing all money for the County and insuring that it is available when needed. Additionally, Section 6-3.3(d) of the Hawaii County Charter gives the Director of Finance the authority to invest funds and credit the funds with interest. Bill 19, Draft 2, deletes that portion of Bill 19 that relates to investments. Finally, Bill 19, Draft 2, amends Section 2-218(c) by not specifying how costs shall be allocated between the seller and the buyer. Distribution of costs are usually articulated in the purchase agreement and are sometimes part of the purchase negotiation. Should you have any questions or concerns, I will be happy to discuss them with you. Please contact me at your convenience. Thank you very much. William Ta aba Director Enclosure APPROVED: `'1.^IN~f,',N0 Y F Harry Kim Mayor