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MINUTE S
BUDGET & FINANCE COMII1ITTEE
February 18, 2009
A meeting of the Budget & Finance Committee of the Council of the County
of Kaua`i, State of Hawai`i, was called to order by Council Chair Bill "Kaipo" Asing,
Committee Vice Chair, at the Historic County Building, Room 201, Lihu`e, Kaua`i,
on Wednesday, February 18, 2009, at 9:04 a.m., after which the following members
answered the call of the roll:
Honorable Bill "Kaipo" Asing
Honorable Tim Bynum
Honorable Dickie Chang
Honorable Jay Furfaro
Honorable Lani T. Kawahara Honorable Derek S. K. Kawakami
EXCUSED: Honorable Daryl W. Kaneshiro
The Committee then recessed at 9:04 a.m.
The Committee was called back to order at 1:35 p.m., and proceeded on its
agenda items as follows and as shown in the following Committee reports which are
incorporated herein by reference:
Minutes of the February 4, 2009 Budget & Finance Committee Meeting
Upon motion duly made by Councilmember Bynum, seconded by
Councilmember Chang, and unanimously carried, the Minutes of the
February 4, 2009 Budget & Finance Committee Meeting was approved.
Bill No. 2292 A BILL FOR AN ORDINANCE AMENDING CHAPTER 5A,
KAUA`I COUNTY CODE 1987, AS AMENDED, RELATING TO
REAL PROPERTY TAX APPEALS
[This item was deferred.]
BILL "KAIPO" ASING, COMMITTEE VICE CHAIR: I am asking for a
motion to defer this item, please.
JAY FURFARO: Yes, move to defer and I know our chairperson is off
island. '
Mr. Asing: Yes.
Mr. Furfaro: And I need the time as well to submit another .
amendment.
Mr. Asing: Okay.
Mr. Furfaro: So I will move to defer.
Mr. Asing: Thank you.
DICHIE CHANG: Second it.
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Mr. Asing: All those in favor...Oh, I'm sorry. We have
someone who wants to speak on this item. I'd like to suspend the rules. Bruce,
please.
Mr. Furfaro: I remove my motion to defer.
Mr. Chang: I remove my second.
Mr. Asing: Okay, thank you. Bruce?
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There being no objections, the rules were suspended.
BRUCE PLEAS: Bruce Pleas for the record. I have gone through
this appeal process. I find it kind of quasi judicial. I stepped in not knowing what I
was getting into and by the time I got out of there I was very well educated as to
how the system works. I think that may be part of the problem why people go into
the Review Board and come out saying that it doesn't work. It is because they have
a...they have a set way and you have to really present and have verification of what
you have done. In light of that, the...the...there are things that can be done. As for
this bill, the first one that it puts out the reduction from 20% to 10% in the
assessment of market value, I support that and I hope that will stay. What I'd
really like to add to this and I've asked before is to add wording that ensures that
all owners filing an appeal and appearing before the Board are provided complete
copies of information...of the information provided to the Board by the county
assessor. I think we need to put that wording into this document so that it happens
because they have a read-out, they have everything there but you don't get it. And
that is the same as me coming here without a copy of this bill. So, I...it's something
that would be nice if it happened, but I think for it to happen...I think it needs to be
included in this bill as a procedure that they supply the information to the people.
Also on another note, the assessments can be wrong and...as in the case mine was
wrong. But the biggest blaring problem that I saw when I came in was that
they...the assessor did not recognize that Kekaha was a flood area. That was why I
came in because I had been flooded and you get a 25% reduction...in your property
tax. But the assessor did not even know that Kekaha was a flood area and that it
flooded and the Board was kind of amazed at that and luckily I got my 25%.
But...so the system is working but it has to be...there are some things that need to
be done in the system. So, I would hope that that would be an amendment that
comes in to ensure that the public, as they come in, can get documentation so they
know what they're doing and also that the 10%...the 20% is decreased to 10%.
Thank you.
Mr. Asing: Thank you. Is there anyone else? - Glenn. Glenn,
you weren't here when I...
GLENN MICKENS: Yes.
Mr. Asing: ...made the announcement that we're going to defer
the item.
Mr. Mickens: Because Daryl's not here as the committee chair.
Mr. Asing: Yes, a combination of things and yes, you're right,
Daryl is not here also.
Mr. Mickens: Sure, I'll go ahead and you got a copy of my
testimony. I'11...I'll give it for the record anyway. I have a copy of the last floor
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amendment January 7th. I presume that was the last one that's come out. Is it the
January 7th floor amendment? Am I right? ' I also have the other one that it was
amended from. There's no date on it, but it is the bill for an ordinance amending
Chapter 5A, as amended relating to real property tax appeal. That was the original
one and then the floor amendment came out on January 7th which has, oh...about
10 pages I think...10 or 12 pages and it's got the underlining like on page 5 where
Section 5A-12.12 Disposition of Costs, etc. It's been...it's been modified. It was
never passed, but I...and I presume...
TIM BYNUM: It was never introduced.
Mr. Mickens: It was never introduced, right.
Mr. Furfaro: , That's what we said at the beginning. Because
Daryl is out...
Mr. Mickens: Yeah.
Mr. Furfaro: ...those amendments will be introduced at the next
meeting.
Mr. Mickens: Okay. .
Mr. Furfaro: They haven't formally been introduced.
Mr. Mickens: They haven't been formally introduced. ,
Mr. Furfaro: They address a couple of things that the previous
speaker mentioned, but it has not been formally introduced and therefore we'll not
be able to have discussion on it.
Mr. Mickens: But:..but...okay, but no other ones have come out
besides. This is it, right?
Mr. Furfaro: Yes.
Mr. Mickens: Okay, good. Okay, let me quickly just read this.
Because o£..for the record Glenn Mickens. Because of statements made at the last
committee meeting, some clarification should be made. First, although assessments
may be reduced this year, the bill does not affect revenue to the Council...as the
Council may establish rates at the levels needed to produce desired amounts of tax.
Second, while at the last meeting the floor amendment given out had not been
formally received, which it still hasn't by the committee, as the agenda for this
meeting referred to the bill as having been amended, the proposed changes calling
for a settlement conference and arbitration are apparently now included. Both
these changes will provide your constituents fair treatment than are now available
which we agree with. Third, while the assessment personriel of the Assessor's Office
are competent, they are few in number and with over 33,000 assessments to make,
they do not...they do make mistakes. If you believe, as I hope you do, that the
county government should treat its citizens and taxpayers fairly, the procedures for
resolving appeals need change. Only a small number of county taxpayers appeal
their assessments each year and they do not deserve a process that fails to give
them a reasonable hearing. And I think from what I heard you guys say, I think it
was only about 1% or 0.6%, maybe you said it Kaipo, of the Kaua`i residents...
Mr. Furfaro: Six tenths of one per cent.
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Mr. Mickens: Six tenths of one per cent were the appeal, but as
somebody pointed out, I think...one of you councilmembers pointed it out that could
be too because people just don't think the system's going to work so they just fail to
go ahead and appeal as you were pointing out, Kaipo, on Maui and some of the
other places which are higher. Fourth, the bill as amended only is to be effective in
2010. That does not serve our citizens who are suffering in the current economic
crisis who need the help to adjust their taxes to a fairer lev,el this year. The bill
should be adopted and provide that it will be effective upon enactment. This bill has
no adverse effect on county revenues and it creates a far better climate for
resolution of assessments and are (sic) sincerely believed by some of your
constituents to be excessive. I urge adoption of this bill. Thank you, Kaipo.
Mr. Asing: Thank you, Glenn. I'd like to call the meeting back
to order now and can I have a motion to defer.
There being no other wishing to testify, the meeting was called back to order, and
proceeded as follows:
Upon motion duly made by Councilmember Furfaro, seconded by
Councilmember Chang, and unanimously carried, Bill No. 2292 was deferred.
Bill No. 2299 AN ORDINANCE AMENDING ORDINANCE 'NO. B-2008-672
AS AMENDED, RELATING TO THE OPERATING BUDGET
OF THE COUNTY OF KAUA`I, STATE OF HAWAI`I, FOR THE
FISCAL YEAR, JULY 1, 2008 THROUGH JU1VE 30, 2009, BY
REVISING THE SURPLUS ESTIMATED IN THE GENERAL
FUND (Appropriation of $40,203 from the General Fund to
Building Lease, Fire)
[This item was deferred.]
Mr. Asing: Thank you.
Mr. Furfaro: Mr. Chair, I...as you know last week I had asked
for an update on the space planning options that we had and the Administration
asked for an additional two weeks. Since both 2299 as well as 2301 reflect a better
understanding of the space planning, I would like to see if we could not defer this
item.
Mr. Asing: Thank you. What Councilmember Furfaro is
referring to is his letter which is coming on the next council meeting agenda and at
that council meeting we will get an update on the status of the retaining...of the
interior space program consultant for vacant interior areas within the Pi`ikoi
building and then get all of that information. Jay, I will also include this building
too. Mr. Furfaro: Very good.
Mr. Asing: I think we should get an update kind of everything
so that we know where we stand. So, I think it would be... ,
Mr. Furfaro: It sounds very practical, yes.
Mr. Asing: ...good for us to get an update on everything. So
with that before we hear the motion to defer, any other comments? Is there anyone
in the audience that wants to speak on this item? If not, can I have a motion to
defer?
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Upon motion duly made by Councilmember Furfaro, seconded by
Councilmember Bynum,. and unanimously carried, Bill No. 2299 was
deferred.
CR-B&F 2009-03: on Bill No. 2300 AN ORDINANCE AMENDING
ORDINANCE NO. B-2008-672 AS
AMENDED, RELATING TO THE
OPER.ATING BUDGET OF THE COUNTY
OF KAUA`I, STATE OF HAWAI`I, FOR THE
_ FISCAL YEAR JULY 1, 2008 THROUGH
JUNE 30, 2009, BY REVISING THE
SURPLUS AND APPROPRIATIONS
ESTIMATED IN THE GENERAL FUND
($833,696 from the County's General Fund to
the Golf Fund of $233,405 and Sewer Fund
of $600,291)
[Approved.]
CR-B&F 2009-04: on Bill No. 2301 AN ORDINANCE AMENDING
ORDINANCE NO. B-2008-673 AS
, AMENDED, RELATING TO THE CAPITAL
BUDGET OF THE COUNTY OF KAUA`I,
STATE OF HAWAI`I, FOR THE FISCAL
YEAR JULY 1, 2008 THROUGH JUNE 30,
2009,. BY REVISING THE SURPLUS AND
APPROPRIATIONS ESTIMATED IN THE
GENERAL FUND (Work Force Initiative
(Fishbowl) Project)
[Approved.]
There being no further business, the meeting was adjourned at 2:31 p.m. Respectfully submitted,
~hu,
Wilma Akiona
Secretary
APPROVED at the Committee Meeting held on March 4, 2009:
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DARYL . ' SHIRO
Chair, Budget & Finan Committee
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