HomeMy WebLinkAboutREP FC 358 11/06/2008 2006-2008REPORT OF THE
COMMITTEE ON FINANCE
DATE: November 6, 2008
PLACE: Sheraton Keauhou Bay Resort & Hotel
78-128 `Ehukai Street
Kailua-Kona, Hawaii
TIME: 1:33 p.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Re: Comm. No. 1538/Res. No. 797-08
Your Committee on Finance, to which was referred Resolution No. 797-08, reports as follows:
Resolution No. 797-08, transmitted by Director of Finance William Takaba, via Communication
No. 1538, dated October 16, 2008, authorizies the Director of Finance to deposit County securities into
mainland depositories and enter into such depository agreements.
The County of Hawaii invests monies locally with five banks and one broker-dealer. In recent months, three of
the financial institutions that are used have restricted or halted their intake of investments. This not only
concentrates investments in a few financial institutions, but also prevents obtaining the most competitive
interest rate. By restricting the County to do business with only those financial institutions within the State, the
County forgoes the opportunity of evaluating and selecting investment products that will increase yield and
offer more flexible terms.
Some members were concerned that using out-of--state institutions would lessen opportunities for the local
economy. Mr. Mike Okumoto, Treasurer, from the Department of Finance informed Your Committee that once
the measure is approved by the Council, the Finance Department can review and look for the best out-of--state
financial instituions, and determine which one is the best for investment.
Pursuant to Section 46-51, Hawaii Revised Statutes, "Deposit of Securities with mainland depositories," the
Director of Finance of the County of Hawaii may, with the approval of the Council, deposit securities owned
by the County in mainland depositories.
Nlr. Jacobson voted "kanalua" times two.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 797-08, and
recommends its adoption.
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AYES NOES A&E EX
FORD X
RIGA X
HOFFMANN X
IKEDA X
JACOBSON X
NAEOLE X
PILAGO X
YAGONG X
YOSHIMOTO X
Respectfully submitted,
COMMITTEE ON FINANCE