HomeMy WebLinkAboutREP FC 076 2018/01/23 (2016-2018) •
REPORT OF THE •
COMMITTEE ON FINANCE
DATE: January 23, 2018 Re: Comm. No. 696/Bill 93
PLACE: Council Chambers
Kailua-Kona, Hawai`i
TIME: 2:40 p.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Your Committee on Finance, to which was referred Bill 93, reports as follows:
Bill No. 93, transmitted by Finance Director Deanna S. Sako, via Communication No. 696 dated
January 4, 2018, amends Ordinance 17-39, as amended, the Operating Budget for the County of
Hawai`i for the Fiscal Year ending June 30, 2018.
This bill increases revenues in the Real Property Tax Sale Cost & Expenditure account
($525,000); and appropriates the same to the Real Property Tax Sale Cost & Expenditure
account for a total appropriation of$1,070,000. Fund appropriation accommodates an
increased amount of parcels anticipated for Real Property Tax Foreclosure Tax Sale in
Fiscal Year 2017-2018.
Director Sako explained that this is the account that pays all the real property tax sale
expenditures. So when real property tax parcels are foreclosed on, the cost is charged to
this account. The revenue account is the offset which is collected back from the sale
proceeds from the foreclosure sale and the County gets reimbursed for all its-costs. In this
particular year there were more parcels on the list than anticipated so the revenue needs to
be increased as a related expenditure account to cover that.
Council Member Herbert M. Richards, III, asked whether the $525,000 is the actual cost
or whether the uncollected taxes are being written off. Ms. Sako responded that this
amendment will be the total revenue up to the total $1,070,000, and is just the cost-related
to the sale. She further explained that the first part of the sale proceeds goes to pay off the
taxes, interests, and penalties and the costs are also part of the minimum upset price and
therefore the costs get paid off as well.
FC Report No. 76
p
FC-76 Page 2 January 23, 2018
Your Committee on Finance is in accord with the purpose and intent of Bill 93, and recommends
its passage on first reading.
dmm
AYES NOES ABS EX Respectfully submitted,
CHUNG X
DAVID X COMMITTEE ON FINANCE
EOFF X
KANUHA X
Mh 4111
LEE LOY X �/�
O'HARA X 4011 ' may` '
POINDEXTER x MAILE DAVID, CHAIR
RICHARDS X FC REPORT NO.: 76
RUGGLES X ADOPTED: FEB 0 7 2018