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HomeMy WebLinkAboutCOM 0193.001 2008-2010William T. Takaba Managing Director William P. Kenoi Mayor Walter KM. Lau Deputy Managing Director (na~tn#~r u~ ~tt~utti`i 891 Ululani Street Hilo, Hawaii 96720-3982 (808) 961-8211 Fax (808) 961-6553 KONA: 75-5706 Kuakini Highway, Suite l03 Kailua-Kona, Hawaii 96740 (808) 329-5226 Fax (808) 326-5663 March 13, 2009 0 .^1 v_r^t ~ )^ ~ J ~ ~ J't Honorable Chairman JYoshimoto [- - '"' w and Members of the County Council ~' ~ . , - County of Hawaii r'? ~ ~-- , . Hawai'i County Council `t~ `'' ; i w r Hilo, HI 96720 ~-^ ~-~ N 60 Dear Chairman Yoshimoto and Members of the County Council: SUBJECT: BILL 49, AMENDING CHAPTER 2, ARTICLE 42 - RELATING TO PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION FUND Balancing the County budget is difficult in challenging economic times. Sound, well-supported programs must be weighed carefully, and sometimes put aside, to maintain the core services that government must provide. Preserving the beauty of Hawaii Island and the open spaces that help make our island home the most beautiful place in the world is a value that many of us share. But providing for the essential needs of our residents is also important. Sometimes, when values and needs like these are in conflict, government must make the tough choice. Today, we face a worldwide economic crisis that has seriously hurt our financial stability and the County is forced to consider all options for balancing the budget as required by law while maintaining essential public services. In 2006, voters approved the taking of 2 percent of the County's real property tax revenue to be set aside annually for the purchase of vacant land. Since then three parcels have been purchased and $8.8 million has accumulated in the Public Access, Open Space and Natural Resource Preservation fund. My budget keeps intact the $8.8 million Open Space preservation fund that has accumulated over the past three years. But to balance the County budget as mandated by law, I am asking the County Council to suspend the annual 2 percent payment into the fund -- about $4.5 million ayear -the period from January 1, 2009 to June 30, 2011. Comm. No. l q 3~/~. County of Hawaii is an Equal Opportunity Provider and Employer. REf. TO•~r83,~gtMf _...}.r_, {~eC. DafryJbAR ~ 'a'-9943 'f~~ N .. Honorable Chairman J Yoshimoto and Members of the County Council _ Hawaii County Council c'-; ~ ~? Page 2 z~ ~ ~,'. March 13, 2009 ~~: `"`' : . ~ -- y -, ca ~; .y :__ When voters approved the fund, the overall economy was in much better shade andpo was the County budget. But since then our economy has faltered. An annual, automatic deduction of millions of dollars out of the County's general fund now weighs heavily on the County's budget, especially when it is strained by strong economic factors beyond our County's control. With land acquisition also come the additional maintenance and administrative costs which would burden future budgets. It would be wrong and a violation of the intent of voters to acquire land we cannot care for properly. In fact, none of the properties currently designated for acquisition with the fund is being threatened with development at this time, and vast portions of our beautiful Hawaii Island are free of development now and will remain that way long into the foreseeable future. My administration wants to preserve open space and I respect the will of the voters. But I wonder how many voters would accept the higher taxes, program cuts or public safety compromises needed to balance the budget and feed the Open Space Fund if the election were held today. In good economic times, this was a desirable plan. I voted for it myself. But when the County is being buffeted by a failing economy, it's time to make a sober reassessment of our needs. So I take full responsibility for this proposal to suspend payments to the Open Space Fund at this time. Under my proposed budget, police, fire and civil defense agencies will remain staffed, equipped and ready for every need on the Big Island. Programs for senior citizens and keiki will continue and our employees will keep working and contributing to our local economy -- important factors as we brace ourselves for an uncertain future. My proposed budget also reduces spending, maintains our excellent credit rating and borrowing power and doesn't raise anyone's taxes, none of which would be possible without temporarily suspending payments into the Open Space Fund. A suspension of this 2 percent payment is critical to balancing the budget responsibly and I am confident the County Council will take the necessary steps to enact it. When the time is right, possibly in two years when our economy improves, we can resume building the Open Space Fund to preserve land for our enjoyment in perpetuity. Aloha, ~ l~- Billy Ke of Mayor County of Hawai' i is an Equal OpporNnity Provider and Employer.