Committee on Finance Meeting Summary - December 2, 2025

The Committee on Finance convened on December 2, 2025, to review four agenda items, including the transfer of two resolutions and two bills to council, and the withdrawal of one motion. The meeting featured extensive testimony from the Office of Housing and Community Development regarding homelessness funding allocations, as well as discussions from the Fire Department and Real Property Tax Administrator regarding EMS expansion and agricultural tax adjustments. Council members expressed strong support for essential services while voicing concerns over fund efficacy, potential double-dipping in awards, and geographic equity in service delivery.

Consent Calendar

• No items were processed under the Consent Calendar.

Public Comments & Testimony

• No public members spoke during the public comment periods. The committee noted the absence of testimony for Resolutions 396-25 and 397-25 and Bills 108 and 103.

Discussion Items

• Resolution 396-25 (Tennis Court Donation): The committee received a favorable recommendation to forward the resolution to donate professional services from the United States Tennis Association (valued at $145,463) to the Department of Parks and Recreation for resurfacing Lincoln Park Tennis Courts. A related motion to withdraw a previous request was also approved.
• Resolution 397-25 (Homelessness and Housing Fund):
  • Presentation: Office of Housing administrators presented a proposal to award 12 grants to 8 nonprofit organizations totaling $6 million from residential tier two property tax revenues. The approach emphasized strategic allocation, geographic equity, and leverage of outside funds. Five specific county projects (shelters and permanent supportive housing) were reserved for separate RFPs.
  • Councilmember Viegas Position: Expressed frustration that the "lion's share" of funding continues to go to the same organizations with "very little impact." Raised concerns about a specific organization (Neighborhood Place of Puna) receiving significant funding despite prior legal contentions. Questioned data accuracy regarding the 60% concentration of unsheltered individuals in Hilo, arguing the West Side is undercounted due to staffing issues.
  • Councilmember Kirkowitz Position: Expressed deep concern that despite tens of millions invested, the community does not appear "better off." Highlighted visible issues like drug use, safety hazards in parks, and the inability of current programs to reach individuals who do not seek help. Argued for a "radical reset" on the program and questioned where the prevention pieces are. Expressed frustration that organizations receiving millions are not effectively holding individuals accountable for community responsibility.
  • Councilmember Kagiwada Position: Expressed support for the strategic approach and the work of the Office of Housing team. Urged the need to balance equity by ensuring services reach rural areas where community pushback exists. Requested data on the number of people requesting but unable to receive assistance to better understand the gap between need and funding.
  • Councilmember Kimball Position: Emphasized that "optics matter" to voters and urged better documentation to address concerns about potential "double dipping" or overlap in expenses across multiple awards. Stressed the temporary nature of the program and the need for a clear evaluation path.
  • Office of Housing Response: Administrator Costa and Program Manager Hiraishi defended the funding choices, noting that 60% of unsheltered counts are in Hilo based on real-time engagement data. They clarified that travel for client reunification (e.g., flights home) is permissible, distinguishing it from staff conference travel. Acknowledged the difficulty of funding only a portion of the unmet need and the complexity of addressing visible homelessness versus the "tip of the iceberg" of unsheltered populations.
• Bill 108 (EMS Expansion):
  • The committee discussed a bill to appropriate $1,750,000 in state grants to open ambulance operations at Makalet Fire Station in Kona and create six new positions. Battalion Chief Kirikonai testified the initiative would reduce call volume to Kailua Kona by 25% and increase pre-hospital care availability.
  • Councilmember Kimball Position: Expressed strong gratitude for the bill, thanking state legislators and Fire Department staff for their efforts. Stated the initiative is "only fair" for his district and critical for local tax revenue holders.
• Bill 103 (Agricultural Tax Cap):
  • The committee considered an amendment extending the sunset date of the program to December 31, 2029, and adjusting the eligibility requirement to a sliding "10 out of 15 years" window. Administrator Sumira and Councilmember Kimball presented the changes.
  • Councilmember Houstis Position: Expressed concern that the 15-year window might exclude long-term farmers (20-30 years) who need support most. Argued that those who have "paid their dues" over decades should be the primary beneficiaries rather than recent entrants.
  • Councilmember Kagiwada Position: Raised philosophical concerns about decreasing land value relative to building value in agricultural zones, questioning if this maximizes land use. Noted the program is a safety net for aging farmers on fixed incomes living on their homesteads.

Key Outcomes

• Resolution 396-25: Motion to forward to Council with a favorable recommendation was adopted (8 ayes, 1 absent).
• Resolution 397-25: Motion to forward to Council with a favorable recommendation was adopted (8 ayes, 1 absent). The committee directed staff to investigate potential "double dipping" in expense lines (telecommunications, lease, insurance) prior to the next hearing.
• Bill 108: Motion to forward to Council with a favorable recommendation was adopted (8 ayes, 1 absent).
• Bill 103: The amendment to extend the sunset date and adjust the eligibility window was adopted (8 ayes, 1 absent). Subsequently, the main motion to recommend passage on first reading was adopted (8 ayes, 1 absent).
• Adjournment: The meeting was adjourned at 2:34 p.m.