HomeMy WebLinkAboutREP FC 452 10/08/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: October 8, 1991 Re: Comm. 2882
Place: Councilroom
Time: 10 : 00 a .m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill 491, reports
as follows :
Bill 491 proposes to amend Ordinance 91-50, the Operating Budget for
Fiscal Year 1991-92, by increasing revenues in General Fund Account
No. 3609-10, Fund Balance From Previous Year, by $1, 000, 000, and
appropriating same to the following fund and expenditure:
Account No . Function & Activity Amount
010-801-5801.341 Transfer to Other Funds $1, 000, 000
Misc. Charges
(Transfer to Capital Fund for
Kulaimano Community Complex)
Communication No . 2882, dated September 18, 1991, from
Councilmembers Merle Lai and Takashi Domingo, transmits said
Bill 491 which will increase the previous year ' s General Fund Fund
Balance and appropriates same to the Transfer to Other Fund Account
for the Kulaimano Community Complex Project .
The 16th Legislature adopted Act 296-91 which included $1, 000, 000
appropriation for the Kulaimano Community Complex but funds were
contingent upon the County matching funds in same amount .
The Council at its meeting of September 4 , 1991, adopted Bill 466
(Draft 2) amending Ordinance 91-51 by adding the Kulaimano Community
Complex at $1, 000, 000 and specified the funding source will include
available surpluses .
At the September 18, 1991 Council meeting, the Council accepted the
June 30, 1991 Monthly Budget Status Report which is the year-end
financial report . Therein, an adequate fund balance in the General
Fund is available to provide for this project .
The introducers of Bill 491 further state they have taken the
initiative to prepare and introduce the Bill to assure the State and
Kulaimano Community that required matching funds are forthcoming .
FC REPORT NO. 452
ADOPTED: OCT 16 1991
FC- 452 Page 2 October 8, 1991
Communication No . 2929 dated October 7, 1991 from Director of
Finance requests Bill No . 491 be filed with no action as the Mayor
intends to address the funding of the Kulaimano Center very soon.
Attached thereto are Corporation Counsel opinions dated October 4 ,
1991 and June 1, 1979 which purport under the Charter, the Council
may not initiate amendments to the Operating Budget . The power is
reserved to the administration.
Chairwoman noted Communication No. 2929 was received by committee
members immediately prior to the Finance meeting . Several members
expressed their dissatisfaction with the lateness of the communique
and the request to file the subject bill .
Several committee members disagreed with Corporation Counsel ' s
interpretation of Section 10-5 of the Charter . Members contended
Section 10-6, 10-8, 10-9 and other sections of the Charter support
Council authority to initiate amendments to the Operating Budget as
well as capital improvements .
Your committee members heard testimony and discussed several
instances in the recent past where the Council, with assistance from
administration, initiated similar Bill(s) for capital improvements
using funding from the Operating Budget . An example was
Ordinance 91-65 which was recently signed into law by the Mayor .
The administration acknowledges such past actions had occurred;
however, they contend they were not legal .
Contrary to the request by the administration and due to past
inconsistencies regarding Council initiating Bill(s) for capital
improvements, members voted to adopt Bill No . 491 .
Your Committee on Finance is in accord with the intent and purpose
of Bill 491 and recommends that it pass first reading .
HELENE H. HALE, tRWO P
ROBERT H. MAKU!KANE, VICE CHR. BR 111PN J E ;
y, y
TAKAi.HI DOMING!) , M%ER MERLE j , MEMBER
HAR• . S. VDLE, MEMBER N E' K. SC UTTE, MEMBER
POL