HomeMy WebLinkAboutREP FC 130 2018/08/07 (2016-2018) REPORT OF THE
COMMITTEE ON FINANCE
DATE: August 7, 2018 Re: Comm. No. 997/Bill No. 168
PLACE: Council Chambers
Hilo, Hawai`i
TIME: 9:15 a.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
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Your Committee on Finance, to which was referred Bill No. 168, reports as follows:
Bill No. 168, transmitted by Finance Director Deanna S. Sako, via Communication No. 997
dated July 20, 2018, amends Ordinance No. 18-68, as amended, the Operating Budget for the
County of Hawai`i for the fiscal year ending June 30, 2019.
This bill decreases revenues in the Real Property Taxes account by$3.9 million to address
the anticipated reduction in Real Property Tax revenues resulting from devaluation of properties
that were either destroyed or rendered inaccessible by the 2018 Kilauea lava flow. The
following General Fund accounts are reduced accordingly: Infonnation Technology
Other Current Expenses (-$10,105), Planning Other Current Expenses (-$30,000),
Business Development-Research and Development (-$10,000), Mass Transit Other Current
Expenses (-$2,712,145), Mass Transit Equipment (-$1,050,000), Transfer to Public Access
Open Space Preservation Fund (-$78,000), and Transfer to Public Access Open Space
Preservation Maintenance Fund (-$9,750).
Council Member Herbert M.,"Tim" Richards, III inquired as to the initial reduction in revenue, which is
$5 million. Deanna S. Sako, Director of Finance explained that the decrease of revenues actually added
up to $4.9 million. Ms. Sako discussed the matter with Corporation Counsel since, in part, they had to
consider part of the properties that were delinquent in taxes, sold off, and the ones that had a tax lien.
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Finance was considering writing those properties off, since at a tax sale, they would be worthless;
however, Corporation Counsel advised the department to hold off because there could be properties
changing hands. If part of the plan is to buy out landowners so they do not move back and develop in
the area again, there could be monies changing hands and the tax money could be recovered. Ms. Sako
stated the departments have been notified they need to control expenditures since it is not known yet
what will happen with the lava situation or how many more fires or hurricanes there will be. The
$5 million is still a good number and is not being written off at this time.
Council Member Susan L. K. Lee Loy asked for an explanation on the two items coming out of the
general fiend, which are being transferred to Public Access, Open Space and Natural Resources
Preservation Commission(PONC) Fund. Ms. Sako stated that in the budget for this year, two percent
FC Report No. 130
FC-130 Page 2 August 7, 2018
of real property tax revenues were transferred to the PONC fund, with a quarter percent going towards
the PONC Maintenance fund. She stated further that now that the revenues are being reduced, the
transfers to those funds are also being reduced.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 168, and recommends
its passage on first reading.
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AYES NOES ABS EX Respectfully submitted,
CHUNG X
DAVID x COMMITTEE ON FINANCE
EOFF X
KANUHA X
LEE LOY X
O'HARA X -
POINDEXTER X MAILE DAVID, CHAIR
RICHARDS X FC REPORT NO.: 130
RUGGLES X ADOPTED: AUG 2 2 2018