HomeMy WebLinkAboutREP FC 143 03/24/1986 1984-1988 REPORT OF THE 110
COMMITTEE ON FINANCE
Date: March 24 , 1986 Re: Comm. 458
Place: Councilroom
Time: 9 : 00 a . m .
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill 145 , reports as
follows:
The purpose of Bill 145 is to amend Chapter 2 of the Hawaii County
Code by adding a new article to create a special fund to be known as
the "Self Insurance Fund" . The self insurance fund would be used to
cover catastrophic losses in excess of $1 ,000 ,000 .
The goal of Bill 145 is to establish a self-insurance fund of at
least $3 ,000 ,000 with an initial appropriation of $500 ,000 .
Dissolution of this special fund is subject to a unanimous vote of
the Hawaii County Council .
Your Committee heard from the Director of Finance that this fund will
be one part of the County 's efforts to establisha risk management
program. Hopefully, the establishment of the umbrella coverage may
enhance the County 's ability to acquire reasonable insurance
coverages .
Your Committee expressed its concern that the Director of Finance
would be the administrator of the funds , including the investment of
funds . The Director of Finance assured the members of the Committee
that he is limited by statute as to the type of investments he is
able to consider . Basically, investments must be secured by
collateral to insure the County 's posture , should the financial
institution come under difficult periods . The Director of Finance
was requested to submit periodic reports on the investment program.
FC REPORT No .
143
ADOPTED: APR 9 1986
S 410,
FC-143 Page 2 March 24 , 1986
Your Committee on Finance concurs with the intent of Bill 145 and
recommends that it pass first reading .
FRANK DE LUZ III, CHAIRMAN
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