HomeMy WebLinkAboutREP FC 470 02/22/1988 1984-1988 OFFICE INFORMATION ONLY
March 2, 1988
Meeting:
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Action: Receive and file FC Rept. 470
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Re: FC Rept. 470
411 REPORT OF THE410
COMMITTEE ON FINANCE
Date: February 22, 1988 Re: Comm. 1487
Place: Councilroom
Time: 10 :00 a .m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance , to which was referred Resolution
No. 397-88, reports as follows:
The purpose of Resolution No . 397-88 is to fix, determine and set
the amount of the County of Hawaii fuel tax in accordance with law ,
at 8 .785 cents and 6 .785 cents per gallon, respectively, for
gasoline on-highway and LPG on-highway.
Your Committee on Finance is of the understanding that the
resolution is based on the following premises:
1 . That the spending of public monies will be in a manner
provided for by law .
2 . That the amount of fuel tax may be per gallon, one or more
cents or a fraction of a cent or both or zero .
3 . That such resolution shall be adopted only upon the
conduct of a public hearing legally constituted .
4. That the existing County fuel tax had been set 10 years
ago atfive cents per gallon .
5 . That the increase in fuel tax is expected to generate a
projected $1 .5 million increase in highway fund revenues
yearly .
6 . That the spending of all revenues generated from the fuel
tax increase be based upon the apportionment formula '
developed by the Department of Public Works and be used in
accordance with highway improvement projects incorporated
in Exhibit A.
Your committee is aware that the increase in the fuel tax- must be in
consonance with the following conditions:
1 . That all of the revenues generated by the fuel tax
increase shall be expended for highway improvements as
delineated in Exhibit A.
2. That the expenditures shall be in accordance with a
district apportionment formula based upon a percentage
derived from each district 's percentage vehicle weight tax
and percentage road miles , and that the apportionment
formula shall be updated annually .
3 . That this resolution shall take effect in accordance with
provisions incorporated in Section 243-5, Hawaii Revised
Statutes , and shall continue in effect for ten years .
FC REPORT NO , 470
ADOPTED :
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411 110 ,.... , _
FC- 470 Page 2 February 22, 1988
It was reiterated in discussion that Resolution 397-88 differs from
the administration 's proposal in that it includes an Exhibit A and
that expenditures be in accordance with a district apportionment
formula and that such formula be updated annually, and such a
resolution is to be adopted only upon the conduct of duly
constituted public hearings .
Your committee expressed concern if the wording in Resolution 397-88
referred to the restrictions placed upon the use of the revenues
derived would apply to the resolution passed in 1977 . It was
explained that only the revenues derived from Resolution 397-88 will
apply.
There were further concerns expressed relating to the proposed
impact fees as it relates to projects in Exhibit A. It was
explained that roads in Exhibit A refers only to existing roadways .
It was further explained that where impact is involved, specific
guidelines must be followed and would not involve existing roadways .
Your committee has received communications from Patricia A. Hess,
Secretary, Puna Community Council , dated February 2, 1988 (C-1488) ,
and Harry F. Wiese, dated January 26, 1988 (C-1488.1 ) , commenting on
the fuel tax issue. In addition, a communication from
Mayor Carpenter , dated January 29, 1988 (C-1486) , relating to
Resolution 304-87 was received.
Your committee heard testimony from the Hawaii Island Chamber of
Commerce, United Public Workers, Hawaii Island Contractors '
Association, and the Japanese Chamber of Commerce & Industry of
Hawaii in support of Resolution 397-88.
Pursuant to the provisions of Section 243-5 , Hawaii Revised
Statutes , the Council of the County of Hawaii is enabled and
empowered to determine the amount of the County fuel tax.
Your Committee on Finance recommends that all matters relating to
the fuel tax increase be referred to the uncil without a
recommendation.
AlAP° Loolielaidub
FRANK DE LUZ III, CHAIRMAN
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