HomeMy WebLinkAboutREP FC 049 04/07/2009 2008-2010
REPORT OF THE
COMMITTEE ON FINANCE
DATE: April 7, 2009 Re: Comm. No. 193/Bill No. 49
PLACE: Council Chambers
TIME: 11:00a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 49, reports as follows:
Bill No. 49, transmitted by Finance Director Nancy Crawford, via Communication No. 193 dated
March 3, 2009, amends Chapter 2, Article 42, Section 2-214 of the Hawaii County Code 1983 (2005
Edition, as amended) relating to the Public Access, Open Space, and Natural Resources Preservation
Fund. This amendment suspends the transfer of 2% of real property tax revenue, including penalties and
interest, to the Public Access, Open Space, and Natural Resources Preservation Fund, effective January 1,
2009. In addition, the amendment will also eliminate the minimum transfer amount of $250,000 that is
currently required in the Hawaii County Code.
Councilmember Naeole stated that she thought it was a good suggestion to take this issue to Public
Hearing. She gave her support to the 2% fund because she didn't want her district to end up like Kona
with no open spaces.
Councilmember Ford stated that she didn't feel like the Finance Department was actively negotiating to
purchase property. Finance Director Nancy Crawford stated that the county spent a lot of time negotiating
for Kawa but that they had to break off when a deal could not be reached. Ms. Ford indicated that four
good ideas were brought forward to create revenue without using the 2% fund. She cited reassessing
undervalued resort property, unfunding vacant positions within the County of Hawaii, better management
on Capitol Improvement Projects to eliminate cost overruns, and impact fees on all rezone applications as
other ways to generate revenue without violating the will of the people.
Councilmember Ikeda stated he had a hard time supporting the purchase of more land when the County of
Hawaii could not maintain the land it already had. He cited poor maintenance of park land in his district
as an example.
Councilmember Enriques stated he believed that the committee was not hearing from the silent majority
that would support Bill 49. He encouraged all council members to take the next two weeks to really find
out what the people in their communities really thought about this issue.
Councilmember Hoffmann motioned to amend Bill No. 49 with the contents of communication 193.39.
The amendment was approved 9-0. Mr, Hoffmann's amendment put the regularly scheduled June 20,
2009 payment back into the 2% fund to give the fund a balance of $10.8 million at the end of this fiscal
year.
FC Report No.: 49
Page 1
FC Report No.: 49
Page 2
Councilmember Yagong commented that all the information from the Mayor's office indicated that $4.5
million would be gained by not making the deposit to the 2% fund but in reality it would have been $6.5
million if not for Mr. Hoffmann's amendment and he thanked Mr. Hoffmann for making the amendment.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 49, as amended to
Draft 2, and recommends it pass first reading.
Sao
AYES NOES A&E Ex Respectfully submitted,
ENRIQUES X
FORD x COM TTEE ON FINANCE
GREENWELL x
HOFFMANN x
IKEDA x
NAEOLE x ul-ONISHI x DOMINIC YAGON HAI
YAGONG x FC REPOR NO. 49
YOSHIMOTO x ADOPTED: APR 2 2 2009