HomeMy WebLinkAboutCOM 0240.000 1998-2000 vv os y
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Stephen K. Yamashiro Hany A. Takahashi
Mnyor Director
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County of Hawaii '
DEPARTMENT OF. FINANCE S.K. Schutte
Deputy
25 Aupuni Street, Room 1 I8 • Hilo, Hawaii 96720-4252
(808)961-8234 Faz~(%08J961-8248
April 7, 1999
The Honorable James Y. Arakaki
Chairman
Hawaii County Council
Hilo, Hawaii
Re: Bill 57 Relating to a Capital Appropriation of $1.2 Million
Bill 57, which was heard at the Committee On Finance meeting of April 7, 1999, has been
approved for consideration by the full Council. During the Committee discussions, there
were concerns raised as to whether the project was an appropriate consideration for the
Capital Fund.
Attached for your consideration is a resolution which would allow the department of finance
to pursue the acquisition through an equipment lease finance package. This alternative
provides for a more definite funding source as compared to our original plan to seek out
available funds throughout the Capital Fund.
Utilizing an amortization schedule $1.0 million financed at 5% results in annual lease
payments of $226,455 over five years. Payments would be paid from the Operating Budget.
The final payment schedule will vary on the proposal selected, we envision the payment to
the vendor to be incremental. Anticipating that it will probably take us a while to solicit and
award the procurement and finalize the lease financing and if this alternative proposal is
acceptable to the Council we will then budget only a portion of the lease payment in the year
1999-2000.
As indicated in the Finance Committee discussions, Maui County and Kauai County have
already indicated that they will be pursuing their own systems. Their departure will leave
only the County of Hawaii as needing to be serviced and indications are that our annual
costs for such services will increase. Service will also be restricted to staff time availability
which would then restrict the consideration of amendments to the real property tax code.
The City has informed us that they would like to be appraised of our plans.
Comm. No. ~ ~'O
File No.
Ref, To:,_ F~„~~
Ref. Date
We share your Committee's concern that this proposal is surfacing at a very difficult time,
however, based upon the decisions by Maui and Kauai counties and the City placing
conditions to future services we felt that we needed to present this issue to the Council now.
Should you have any further questions, please feel free to call.
Sincerely,
Harry A.
T~a arash~~ C~
Finance Director
Cc: Real Property Tax
Res. `7f3-99
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OFFICE OF THE COUNTY CLERK
HAWAII COUNTY BUILDING
COUNTY OF HAWAII
HILO, HAWA119620
May 5, 1999 Refer: Res. 73-99
C-240
To: Finance Director
Re: Resolution Authorizing the Payment of Funds from the
Appropriations of a Later Fiscal Year or of more than One Fiscal
Yeaz for a Lease Finance Program for a Real Property Tax
Computer System
The following is the action of the Hawaii County Council adopted at its
meeting held May 5, 1999:
Res. 73-99 was adopted and FC Report No. 74 was approved
and adopted.
TY CLERK
Att.
xc: Mayor
Real Property Tax Office
Comm. No. 25~/I
Pile No. F.S~~
M.B. No.
Date: MAY 0 5 ~
REPORT OF THE
COMMITTEE ON FINANCE
DATE: Apri120, 1999 Re: Comm. No. 240/Res. No. 73-99
PLACE: Councilroom
TIME: 10:45 A.M.
Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was refeaed Resolution No. 73-99, reports as follows:
Resolution No. 73-99, transmitted by Finance Director Harry Takahashi, via Communication
No. 240, dated Apri17, 1999, authorizes the payment of funds from the appropriations of a later
fiscal year or of more than one fiscal year for a Lease Finance Program for a Real Property Tax
computer system.
Pursuant to Article X, Section 10-11, Hawaii County Charter, any contract, lease or other
obligation requiring the payment of funds from the appropriations of a later fiscal year or of
more than one fiscal year shall be made or approved by resolution.
Currently, the County of Hawaii pays the City and County of Honolulu approximately $250,000
per year for computer services used in the assessment and billing for real property in the County.
Recently, City and County of Honolulu informed the County that they would be implementing a
new Real Property System that will increase costs to all users of their system.
Due to rising costs, Maui and I{ausi Counties are planning to implement independent systems
that may result to even higher costs to the County of Hawaii. Therefore, it is imperative that
Hawaii County implements its own system.
At the Committee on Finance meeting of April 7, 1999, Your Committee voted to approve Bill
No. 57, which proposed to amend the Capital Budget by adding this project. At that time
concerns were expressed that a bill was not the proper vehicle to expedite the financing of said
project.
Your Committee on Finance is in accord with the Purpose and intent of Resolution No. 73-99
and recommends its adoption.
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Aye No.. E Respectfully submitted
CHUNG X
ELARIONOFF X ITTEE ON FINANCE
JACOBSON X ~
LEITHEAD-TODD X / I
PISICCHIO X (.,,,r.y~ ~p...~„/ •
SMITH X AARON S.Y. HUNG, CH R
TvLER X FC REPORT N 74
YAGONG X
ARAKAKI, E.O.M. ADOPTED: MAY