HomeMy WebLinkAboutCOM 0958.008 2016-2018 Harry Kim '''''''' Deanna S. Sako
Mayor ' • \v ii,�j��''- Director
Nancy Crawford
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County of Hawai i
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawai`i 96720
(808)961-8234 • Fax(808)961-8569
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June 28, 2018 Z
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Valerie Poindexter, Council Chair and Co c).,<
Members of the Hawaii County Council
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Hawaii County Council 3>rn
25 Aupuni Street W
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Hilo,Hawaii 96720 '
Re: Bill 159,Draft 2 Establishing a.25% GET Surcharge
As we all prepared for and reviewed the fiscal year 2019 budget, it was apparent that there was a
widening gap between general fund revenues and expenditures which would continue to grow in
subsequent years. The largest portion of expenditures are beyond County control.
The administration introduced a GET Surcharge bill as a means to receive much needed
additional revenue and to diversify sources of revenue. The County's dependence on one primary
source of revenue for the general fund,real property taxes, leaves us vulnerable to the whims of
the real estate marketplace or other events.
The Kilauea lava incident that began on May 3rd has served as a reminder that our financial
situation can shift quickly and significantly. While many disaster costs may be covered by
FEMA reimbursement and State assistance,the impact on real property tax revenue is not
covered and is permanent. Future impact is unknown.
The GET Surcharge currently under re-consideration will allow the County to maintain current
services and invest in improving our mass transit system and roads. The attached table indicates
the surcharge impact on a range of potential tax payers, and some of the many benefits. The
payment is proportional to the spending level, but the services that are supported are the
same for all people,whether a person pays $27 or$270 per year in tax. The GET Surcharge
has the added benefit of allowing visitors to share in the cost of maintaining the services we
provide to them.
We stand at a pivotal point for Hawaii County government and for the impact it has on our local
economy and quality of life. Thank you for your concern and your re-consideration of Bill 159.
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Deanna S. Sako
Director of Finance Comm. No. 0.0
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Enc. Ref. Date JUN 2 9 7018
Hawai'i County is an Equal Opportunity Employer and Provider
.25% .GET Surcharge
Cost & Benefits
Annual Monthly
Household Household Benefits
Spending Increase • Maintained county services
$10,000 $2.27 - Gyms
- Parks
$20,000 $4.54 - Pools
$30,000 $6.82 - Programs/Events
$40,000 $9.09 • Continued recycling program
$50,000 $11.36 • Improved mass transit
$75,000 $17.04 system
$100,000 $22.72 • Improved roadways