HomeMy WebLinkAboutREP FC 168 12/06/2011 2010-2012 REPORT OF THE
COMMITTEE ON FINANCE
DATE: December 6, 2011 Re: Comm. No. 477/Bill 150
PLACE: Council Chambers
Hilo, Hawai`i
TIME: 3:11 p.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill 150, reports as follows:
Bill 150, transmitted by Director of Finance Nancy Crawford via Communication No. 477, dated
November 22, 2011, amends Ordinance No. 11-60, as amended, relating to public improvements
and financing thereof for the fiscal year July 1, 2011 to June 30, 2012, is hereby amended by
establishing the program appropriations listed on Exhibit A, which is attached to Bill 150.
Funds for this appropriation increase shall be provided from:
Lapsed Fuel Tax Increase funds $7,494,973.83
This proposed Bill amends the Capital Budget by re-appropriating the lapsed fuel tax funds from
past fiscal years. These funds will be appropriated back to the original districts/categories as
indicated in Exhibit "A" of the proposed ordinance. The sources of lapsed funds are detailed in
Exhibit `B," which is also attached to Bill 150. The total amount being re-appropriated with this
bill is $7,494,973.83.
Pursuant to Section 10-6(d), Hawai`i County Charter, the Council may amend the Capital Budget
for this fiscal year by a two-thirds vote.
Some Members questioned and commented: 1) Are these unspent funds, and why were they not
applied to other projects; 2) If a large portion of these funds are applied to engineering projects,
should we not adjust this and increase funds to paving; 3) Mr. Hoffmann's request for Public
Works Director Warren Lee to provide Council Members with a priority list of projects, which
was covered during this meeting; 4) Inability to obtain information, which of the 62 projects
have committed, uncommitted, or left-over funds, from Department of Public Works Department
and Finance Department; 5) Address concerns by the general public, and complaints regarding
money unexpended; 6) County roads still in disrepair, and 7) Public's perception and concern on
these projects lapsed over seven-plus years.
Finance Director Nancy Crawford, Deputy Finance Director Deanna Sako, and Public Works
Director Warren Lee appeared before Your Committee. Mr. Lee stated that the unspent funds
are obligated to: 1) Engineering for new or improved road construction; and 2) Highway Fund,
FC No. Report No. 168
FC-168 Page 2 December 6, 2011
for repaving. This re-appropriated amount of$7,494,973.83 is a reconciliation of the Highway
Fund for 2011. He further stated reconciliation is done at completion of projects, at the end of
the fuel tax ordinance time line of two years. The reconciliation is prepared every three years,
based on projects completed or in-progress.
Mr. Lee also commented that a large portion of the reappropriated amount involves engineering
projects and the remainder to repaving projects, and will be reallocated to its respective districts.
In response to Mr. Hoffmann's concern, Ms. Crawford responded that monthly budget status
reports in the balance sheet contain information for lapsed funds, and added that there could be
funds committed, if not spent, that might have been released at the time the ordinances lapsed.
Mr. Lee confirmed that he will provide the Council with a list detailing which of the 62 projects
are in-progress or completed, and as such, list to indicate if funds are committed or not
committed to a project. He mentioned that Ms. Diane Shiro, Business Manager for Department
of Public Works, is not available to work on the list until January 2012. Ms. Ford requested Mr.
Lee to provide Council Members with this list, and it should be placed on Finance Committee's
second meeting, to be scheduled in January 2012. It was later clarified by Mr. Yagong that
Department of Public Works to also provide another list as to how the $7.5 million will be spent.
A verbal amendment was made by Mr. Hoffmann, on Section 2, Bill 150, to correct the year
reference, provided for account number 2271.32, as follows:
"2271.32 Fuel Tax Increase 08-[90] 10 2,296,324.35".
This amendment was unanimously approved.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 150, as amended
to Draft 2, and recommends its passage on first reading.
dkr
AYES NOES A&E EX Respectfully submitted,
BLAS X
FORD X COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
ONISHI X
911/1L-
PILAGO X
SMART X BRENDA FORD, CHAIR
YAGONG X FC REPORT NO. 168
YOSHIMOTO X ADOPTED: DEC 2 1 7011