HomeMy WebLinkAboutREP FC 161 12/06/2011 2010-2012 REPORT OF THE
COMMITTEE ON FINANCE
DATE: December 6, 2011 Re: Comm. No. 466/Bill 142
PLACE: Council Chambers
Hilo, Hawai`i
TIME: 3:11 p.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill 142, reports as follows:
Bill 142, transmitted by Council Member Brenda Ford, via Communication No. 466 dated
November 21, 2011, is a bill for an ordinance to amend Article X, Financial Procedures, Section
10-12, Special Funds of the Hawai`i County Charter (2010 Edition), Relating to Establishing or
Abolishing Special Funds.
Mr. Yagong resumed chairmanship of the Finance Committee.
Ms. Ford commented that the "archaic language" in the charter be amended and brings forward
this bill. She further states, by charter, that council sets and administers and implements policies.
The language as it exists today is illegal and violates the separation of powers.
Director Nancy Crawford and Deputy Director Deanna Sako of the Finance Department
appeared before Your Committee. Ms. Crawford commented that both the Mayor and Council
should have input into establishing or abolishing special funds as part of check and balances.
There are concerns that these proposed changes will not provide that. She believes the current
language, as it exists, allows collaborative action as needed. Ms. Sako provided the technical
accounting comments and concerns as related to this proposed Bill. Furthermore, she stated
specific accounting rules to follow in preparing the fund to do the financial statement. Having
some kind of a collaborative effort beforehand will be helpful so that everyone will understand
the accounting rules.
A proposed amendment was transmitted via Communication 466.1 from Ms. Ford, dated
December 7, 2011. This proposed amendment was provided with the assistance of LRB
Specialist Steve Offenbaker. He commented on the proposed amendment before Your
Committee and stated this allows both branches to collaboratively submit legislation. He
explained that currently, administration brings other proposed legislation to Committee/Council
and its chair would place it on the agenda to be discussed. The following amendment will follow
the same process: "[The council may by ordinance create or abolish such special funds] Special
funds may be created or abolished by ordinance as may be necessary for the proper and efficient
segregation of fiscal operations of the county." This identifies neither the Mayor nor Council for
this matter. Those amendments contained in Communication 466.1 were unanimously approved.
FC Report No. 161
FC-161 Page 2 December 6, 2011
Your Committee on Finance is in accord with the purpose and intent of Bill 142, as amended to
Draft 2, and recommends its passage on first reading.
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AYES NOES A&E EX Respectfully submitted,
BLAS X
FORD X COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
ONISHI X NL��
PILAGO X
SMART X BRENDA FORD, CHAIR
YAGONG X FC REPORT NO. 161
YOSHIMOTO X ADOPTED: DEC 2 1 2011