HomeMy WebLinkAboutCOM 1168.100 2006-2008
My name is Richard Toledo and I am President of the Hawaii Island Portuguese Chamber of Commerce.
We currently have 237 members representing a good cross section of businesses on the island.
i am here to express opposition to the proposed action of this council in floating a $114 million bond.
We are experiencing the unprecedented growth of county government in size and funding, a growth
rate we feel is not sustainable over the long run under current tax rates. Many of us have experienced
downturns in our economy and the subsequent belt tightening during the cycle. However, indications of
this downturn, based on national and state predictions, seem more severe that past adjustments.
The cost of fuel and energy is putting a severe strain on business operating costs and family
transportation costs. In addition, escalating cost in all categories from food to household goods are
adding to the overall pinch in business and family incomes.
The prudent businessman is putting off business expansion, capital expenditures and hiring. Families
are altering their lifestyles to meet increasing living costs. Anticipated off island vacations are being
cancelled because of rapidly rising air fares.
The County of Hawaii has yet to resolve our solid waste issues and this procrastination only assures us
that we will be spending more than we currently expect to spend which will require more property tax
revenue. We have about two years left with our current landfill before action is mandated. The Federal
requirements for our police radio system is expected to cost at least another $89 million and our County
administration building will also require several tens of millions to complete.
We understand that our annual Bond debt servicing is about $36 million and approval of the proposed
$114 million bond will double our annual debt and seriously jeopardize our Bond ratings and interest
rates.
We recently heard of the bankruptcy of the City of Vallejo, California. Vallejo is experiencing a serious
downturn in property values and effects of the credit crunch, not unlike our own situation. Their
property tax receipts have been drastically reduced because of decreased property values. Vallejo can
no longer meet their financial obligations and the taxpayers will end up paying for financial settlements
resulting from the bankruptcy.
We do not see any type of business continue with a "business as usual" attitude for the immediate
future and would not expect government to conduct themselves any differently. The record government
spending by this administration and council over the past several years must come to an end. Prudence
and judiciousness in spending must prevail.
Thank you for your time and patience.
Richard Toledo
Hawaii Island Portuguese Chamber of Commerce
Hilo
Comm. No.
Ref. To, J
Ref. Duce N 8 2002