HomeMy WebLinkAboutREP FC 046 02/16/1999 1998-2000 REPORT OF THE
COMMITTEE ON FINANCE
DATE: February 16, 1999 Re: Comm. No. 1084/Bill No. 340
PLACE: Councilroom
TIME: 10:30 A.M.
Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 340, reports as follows:
Bill No. 340, transmitted by Finance Director Harry Takahashi, via Communication No. 1084, dated
November 17, 1998, amends Ordinance No. 98-50, as amended, the Capital Budget ending June 30, 1999.
The amendment is as follows:
FROM:
3104.06 Fuel Tax Increase Highway Fund $5,000,000
TO:
TEA-21 Projects (Federal Aid) $2,500,000
Local Road Improvements $2,500,000
Total $5,000,000
Allotments for these program appropriations were listed on an attached Exhibit A.
Originally heard on February 3, 1999, this measure and its respective communications were deferred to allow
for more discussion at today's meeting.
The original fuel tax program, established by Resolution No. 397-88, created aten-year revenue stream for
the improvement of the County highway system. Fuel tax revenues were allocated to each tax map district
according to a district's percentage of weight tax and road miles divided by two. Although this formula
intended to equally distribute fuel tax revenues, it assumed that all districts had similar roads with similar
facilities such as bridges and traffic signals. As this is not true, Bill No. 340 utilizes a new distribution
formula that allows for more flexibility in addressing each district's needs.
The new revenue appropriations equally divide fuel tax revenues into two categories: (1) TEA
(Transportation Equity Act of 1998, formerly ISTEA, also known as TEA21) Projects and (2) Local Road
Improvements. Revenues directed to Local Roads will be distributed to tax map districts according to its
percentage of local streets. Percentages will be recalculated biennially to accommodate newly dedicated
roads, abandoned roads, and any other changes in mileage.
Bill No. 340, Draft 2, transmitted by Council Member Dominic Yagong, dated January 21, 1999, was
submitted to amend Bill No. 340 by adding a Roads In Limbo category, thereby dividing fuel tax revenues
into three categories: (1) TEA21 Projects ($2,000,000), (2) Local Road Improvements ($2,500,000) and (3)
Roads In Limbo Improvements ($500,000). Revenues directed to Roads In Limbo Improvements would be
distributed equally among Hamakua, Ka'u, North Kohala, Puna, South Kona.
FC REPORT NO. 46
Council Member Bobby Jean Leithead-Todd also proposed to amend the revenue appropriation by adding a
Circle Isle Improvements category in a third draft of Bill No. 340, thereby dividing fuel tax revenues into
three categories: (1) TEA21 Projects ($2,500,000), (2) Local Road Improvements ($2,000,000) and (3)
Circle Isle Improvements ($500,000).
Council Member Dominic Yagong recommended filing Bill No. 340, Draft 2, as he will introduce to the
Council a fourth draft that incorporates additional amendments. Meanwhile, a motion to approve Bill No.
340, Draft 3, failed. Therefore, Your Committee will forward Bill No. 340 in its original form to the
Council.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 340 and recommends it pass
first reading.
Ici
ny~ rvoee A&e ex Respectfully submitted
CHUNG X
ELARINOPF x COMMITTEE ON FINANCE
JACOBSON X
LEITHEAD-TODD X U _ "
PISICCHIO X
SMITH X
TvLER x AARON S.Y. CHUNG, CHA R
vAGONG X FC REPORT NO. 46
ARAKAKI, E.O.M. X ADOPTED: ~R~~T-