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HomeMy WebLinkAboutCOM 0668.001 2008-2010Murashige, Laura From: Sent: To: Cc: Subject: Bob Hunter [robert.m hunter @hawaiiantel.net] Sunday, January 31, 2010 2:46 PM counciltestimony @co.hawaii.hi.us, cohmayor @co hawaii.hi.us, 'Pete Hoffmann, kforissier @co.hawaii.hi us Testimony on Comm 668 - Fair Share Annual Report Attachments: missing- impact- fees -01 -31 -2010 pdf Chairman Onishi and Members of the Finance Committee, Thank you for this opportunity to testify on Comm. 668. PI FO RE 1tV _D plg • fe@o hlwafRA u j 09 COL': - . l.: t i COUNTY : ,)- t 1 /V/il The Fair Share Annual Report shows that the Fair Share System is failing to protect the Hawai'i Island ohana from the impacts of growth. Your families and friends are being forced to subsidize the costs of new development, instead of having new development pay its own way. Attached is a chart that shows how much the County could have collected over the last few fiscal years if it had a development impact fee system in place instead of a fair share system. The impact fee estimates show revenues for implementing impact fees at 50% of allowable costs (the level considered by the County Council last term) and at 100% of allowable costs (per the County . consultant's recommendations). Hamakua, North Hilo, Puna, Ka'u and South Kona receive no benefit from the fair share system, because the "horse is out of the barn" zoning wise. They would benefit from an impact fee system. Here are some suggestions that would make the Fair Share Annual Report more helpful: 2/1/2010 Page 1 of 2 The results certainly show that impact fees adopted at any reasonable level could used to fund projects in the County capital budget that now have to be funded with property taxes. Please remember that fact later this year when you are asked to raise the property tax rates to be paid by Hawai'i Island's hardworking families. A graphical chart showing the contribution amounts for the last few years, credited to each district, would be helpful in creating an understanding how the fair share system works (or doesn't work). If the report is going to be prepared eight months after the end of the fiscal year, it should contain a line item for cash contributions received by the county since the date of the report, or the cover letter should contain an updated table. Those cash �(� +�'��� Comm. f. T �o._ Ref. ion Ref. Date FEB 0 2 2M contributions are available for appropriation, too, and in these tough times it is a good idea to know the total amount of cash that is available to each district, not the amount that was available seven months ago. The in -lieu contributions and park dedication fund cash contributions should be organized by district, in the same way the other fair share contributions are organized. Then it would be easier to assure that the required "rational nexus" is being maintained. For example, you could track whether all park dedication fund cash amounts are being spent in the district in which they were collected. If the report is going to include cash contributions to the park dedication fund, it should track actual land dedications, too, for "rational nexus" purposes, if for no other. Including the TMK for the dedicated parcel in the table would allow for that check to occur. Thank you for this opportunity to testify. Aloha, Robert M. (Bob) Hunter, Ph.D., P.E. 65 -1116 Hokuula Rd. P.O. Box 2709 Kamuela, HI 96743 tel 808- 885 -4194 cel 406 - 581 -2234 fax 866 - 740 -4144 toll free robert.m.hunter @hawaiiantel.net www.webpatent.com 2/1/2010 Page 2 of 2 30 10 Comparison of Fair Share Contributions to Impact Fee Revenue Potential 15.62 5.77 e i // / 2 92,E % .%\ /////"/ ' ; 06-07 07-08 08-09 Fiscal year � y «g Fairshare m w :% Impact fe e 50% 24.72 15.31 � � Vii% �% 7� ; 504 x© ` : d' ;\ 2.52 f "/, > 02;% yam , /Cf'4 09-10 th ru Dec Im pact me1O°