HomeMy WebLinkAboutCOM 0817.077 2008-2010Murashige, Laura 2 E5. 3Sol _ iol cj, pi . 317
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Attachments: Council Budget Testimony 6 7 2010.doc
Aloha Hawaii County Council
I would like to submit a copy of my testimony to the Hawaii County
Council regarding the proposed 2010 - 2011 County Operating Budget and
the related proposed Property Tax Rate increases.
Thank you for your due diligence to get our County Government
back under control.
Aloha,
Fred ...House'
6/3/2010
Fred Housel [Fred @kieleokona.com]
Thursday, June 03, 2010 6:57 AM
counciltestimony @co.hawaii.hi.us
Public Testimony For The June 7 County Council Meeting
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Page 1 of 1
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Good morning, Chairman Yoshimoto and Council Members,
My name is Fred Housel. I'd like to present testimony regarding the
proposed 2010 — 2011 County Operating Budget and the relevant
proposed property tax rate increases.
Remember the Mayor claiming in February that any change in
property taxes would be tax neutral?
Have you heard the Mayor say that recently?
The Mayor's Budget Statement to the Council dated May 5, 2010 says
the Administration is extending targeted tax relief to the agricultural
community and that small farmers are critical to Hawaii Island's future
economy.
The Budget Statement also says the Budget Plan is proposing a 4 %
reduction in property taxes on Ag land to benefit farmers.
The Budget Plan proposes this 4% reduction by raising the tax rate on
farm buildings by 31.5 %.
Hello! How does raising the farm building tax rate by 31.5 % result in
a tax reduction of 4 %?
The answer is with Smoke and Mirrors. Here's how it really works:
The Finance Director has stated property values have declined 9.4 %
in the past year.
Most of the farms on the Big Island are small farms of which the
higher tax value component is the farm buildings versus the land
value. On the smaller number of large farms and ranches, the land
value is higher proportionately to that of the farm buildings.
By increasing the tax rate on farm buildings by 31.5 %, the small
farms will bear the brunt of the tax increases.
The average property tax bill for a small farmer will see a 20 %
increase.
The large farms and ranches will see very little increase as most of
their tax value is in the land value.
How in the world does this Administration think they are helping the
small farmer?
Most small farmers lead a hand -to -mouth existence. A 20 % property
tax increase in a down economy will push a number of farmers off the
cliff.
With this proposed Budget and related tax rate increases, the Mayor
has placed a hangman's noose around your neck.
The Mayor doesn't have to run for re- election this year, but you do!
If the County Council approves this Budget and Tax Rates increases,
most tax payers won't realize how much their taxes are going up until
they receive their Property Tax bill on July 20.
After they have to pay their first tax installment by August 20, the
memory of that tax increase, approved by their Council
representative, will still be very fresh in their mind when they vote in
the Primaries on September 18.
Please do the right thing in a very difficult economy when all of us
have had to make sacrifices and trim our budgets.
Please work with all of your Council members to reduce the fat and
excesses in an over - stuffed Budget, supporting a bloated County
Government.
You know the areas where the most pork is:
Funded Vacant Positions.
Out of Control Overtime Pay.
Police and Fire Department Raises and Non - Critical Expenses.
Accelerated Pension Payments.
County Bands.
Golf Course Subsidies.
Mass Transportation Subsidies
89 Day Sweetheart Consulting Contracts for Retired Employees.
Pay for Accrued Excess Vacation Time.
We need to get our County Government back under control!
Thanks for your consideration.
Fred Housel