HomeMy WebLinkAboutREP FC 319 01/08/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: January 8, 1991
Place: Councilroom
Time: 11: 00 a .m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was re-referred Bill 370,
reports as follows :
Bill 370 proposes to amend Ordinance 90-74, the Operating Budget for
Fiscal Year 1990-91, by increasing revenues in the following General
Fund Account :
Account No. Source Amount
010-000-3609 . 10-000 Fund Balance from $220, 000
Previous Year
and appropriating same to the following account:
Account No. Function & Activity Amount
010-121-5125 . 02-115 Real Property Tax $220, 000
(Programming)
Your Committee Report No . 292 of the November 27, 1990 Committee
meeting recommended that Bill 370 pass on first reading . At its
December 5, 1990 meeting, the Council approved Bill 370 on first
reading and referred it back to Committee. In referring the bill
back to Committee, it was suggested that the Administration consider
alternatives for the programming of the tax relief measures and that
they be prepared to discuss them at the Committee meeting.
During the Committee discussions, it was explained that the $220, 000
was derived by applying the conservative private consultant rate of
$60 per hour to the 1600 estimated hours required for each of the
programming changes and adding an additional $25, 000 for other
software program changes . ($60x1600= 96, 000x2= $192, 000+25, 000=
$217, 000) . The $217, 000 was then rounded to $220, 000 .
The foregoing cost estimate was based upon information submitted by
Mr. Bob Graham, Director of Data Systems . In Mr . Graham' s
communication, he explained that program charges could range from
$25 per hour for in-house work up to $60 to $100 per hour if a
private contractor was used. The lower in-house rate was not used
because Honolulu informed the department that no resources were
available to commit to this project .
FC REPORT NO, 319
ADOPTED: JAN 15 1991
FC-319 Page 2 January 8, 1991
Program changes would have to be in place by December 31, 1991 for
the Administration to meet the requirements of the ordinance. They
are trying to piggyback upon the City and County of Honolulu' s
efforts to engage a private contractor for programming services . If
the City is not able to hire a contractor by June 1991, it may then
be necessary to implement to functions manually at an estimated
annual cost of $170, 000 .
As explained by the Real Property Tax Administrator, perhaps the
best case scenario would be to appropriate the $220, 000 and allow
them to negotiate at a significantly lower figure, between $50, 000
to $70, 000 . If the negotiations are not successful, then the
implementable date be put off till 1993 when the County is hopeful
of acquiring its own system. The unexpended funds could then be
applied to the new system acquisition.
Your Committee explained that when both tax relief measures were
approved, the public was assured that implementation would be at the
earliest date possible.
Your Committee was also very much concerned that the County is about
to expend $220, 000 for programming costs for programs to be
implemented in 1992 and that in 1993 when the County acquires its
new system, the programs would then need to be converted. Should
the County wait till 1993 when the new system is being planned for
acquisition, the programming requirements would be incorporated into
the new system.
The Real Property Tax Administrator requested a clarification that
if by June of 1991 the City has not hired a consultant, that his
department would then proceed to manually perform the functions .
Chairperson Hale explained that the appropriation seems broad enough
to allow for the programming of the implementation be it by
automation or manually. If a manual system is eventually utilized,
then there may be future cost consideration.
Your Committee on Finance is in accord with the intent and purpose
of Bill 370 and recommends that it pass second and final reading .
HELENS H. HALE, C IRWO N
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ROBERT H. UAKANE, VICE CHR. BR AN Dy L -'• :ER
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HARR ' S. 'UDDLE, MEMBER SPENCER K. SCHUTTE
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