Committee on Finance Meeting - May 19, 2026
Committee on Finance Meeting - May 19, 2026
The Committee on Finance met on May 19, 2026, at 1:01 PM in the Hawaii County Building in Hilo, with councilmembers present. The meeting covered routine fund transfers, change orders, reallocation reports, property assessment certification, a lease resolution, a biennial budget charter amendment, and appropriations for public access and disaster funds. The meeting adjourned at 2:28 PM.
Consent Calendar
- Communication 23.34: Report of fund transfers authorized March 16–31, 2026, including a $39 million transfer for hazard pay. Closed file unanimously (9-0).
- Communication 23.35: Report of fund transfers authorized April 1–15, 2026. Closed file unanimously (9-0).
- Communication 24.34: Report of change orders authorized March 16–31, 2026. Closed file unanimously (9-0).
- Communication 887: Real property assessment certification for the 2026–2027 tax year, total net taxable value $56,854,635,650. Closed file unanimously (9-0).
- Resolution 569-26: Authorizing a three-year warehouse lease for Public Works. Forwarded to council with favorable recommendation unanimously (9-0).
Public Comments & Testimony
- No testimony at the start of the meeting.
- On Bill 160 and Bill 161, Debbie Hecht testified, asking about the time period of the penalties and whether the deposits into the PONC fund are automatic.
Discussion Items
- Communication 23.34: Councilmember Houston questioned the $118,000 increase for a street sweeper (original estimate $300,000). Public Works explained that bids came in higher than anticipated due to inflation and a year-long gap between estimation and bidding. Finance Director Nakagawa added that departments receive updated price lists from purchasing but specialty items can be off. Also discussed hazard pay transfer details.
- Communication 24.34: Councilmember Kagiwada asked about reallocations with no additional cost. Finance Director Nakagawa explained that these are often price-term agreements or option years where the actual cost is unknown at time of change order.
- Communication 118.5 (Third Quarter Reallocation Report): Initially tabled to allow questions from Human Resources. Later removed from the table. Councilmembers Kagiwada and Kimball asked about the high number of reallocations for police (82 with no additional cost). HR Director Tokahiro explained that these are temporary promotions from Police Officer 2 to Police Officer 3 for specialized assignments (up to 5–8 years). Deputy Chief Byrd confirmed that the department budgets for these positions annually. Finance Director Nakagawa clarified that cost variances depend on the incumbent's step. The report was then closed file (7-0, two councilmembers excused).
- Communication 887: Property Tax Administrator Miera reported a 2.74% increase in assessments and approximately $10 billion in exemptions. She noted that future revenues may not support current expenditures without rate increases. Finance Director Nakagawa added that a 0% increase is estimated for FY 27-28. Council discussed the importance of upcoming tax rate setting.
- Resolution 569-26: Councilmember Kimball asked whether Mass Transit also needs a similar warehouse space; Public Works did not have an answer but noted the request.
- Bill 159 (Biennial Budget Charter Amendment): Introduced by Councilmember Kimball. Finance Director Nakagawa expressed concerns: the new Connect SIST financial system was built for annual budgeting, and shifting to a biennial cycle would require 12–18 months of system changes. She also noted forecasting difficulty and that the county already plans multi-year budgets. Councilmembers debated pros and cons, including potential for longer-term planning vs. need to let new systems stabilize. Councilmember Kirkowitz advocated for budgeting for outcomes. Councilmember Kimball acknowledged concerns but argued the bill could improve strategic planning. The motion to forward with favorable recommendation failed (1-8), sending it to council with an unfavorable recommendation.
- Bill 160: Appropriates $1,125,000 from real property tax penalties to the Public Access Open Space (PONC) fund ($1,000,000) and maintenance fund ($125,000). Controller Arboles explained that the amount is an estimate of expected late payments and penalties to ensure proper allocation. No further discussion. Forwarded unanimously (9-0).
- Bill 161: Appropriates $443,775.57 from fund balance for final year-end adjustments to PONC and disaster emergency fund. No discussion. Forwarded unanimously (9-0).
Key Outcomes
- Communication 23.34: Closed file (9-0).
- Communication 23.35: Closed file (9-0).
- Communication 24.34: Closed file (9-0).
- Communication 118.5: Initially tabled, later removed from table and closed file (7-0, two excused).
- Communication 887: Closed file (9-0).
- Resolution 569-26: Forwarded to council with favorable recommendation (9-0).
- Bill 159: Motion to forward with favorable recommendation failed (1-8); bill moves to council with an unfavorable recommendation.
- Bill 160: Forwarded to council with favorable recommendation (9-0).
- Bill 161: Forwarded to council with favorable recommendation (9-0).
Meeting Transcript
Aloha, welcome to the 36th session for the committee on finance. Today is May 19th, 2026. It is 101 p.m. Today's meeting is being held at the Hawaii County Building here in Hilo, and we have our facilities open island wide for those who would like to testify. Starting us off today here in Gilo, we have Councilmember Kimball, Galimba, Viegas to my right, Councilmember Kagiwada, Houston, Kirkowitz Onishi, and Councilmember's related birthday was yesterday, and he's not joining us at this moment. He's excused. Do we have any testimony before we begin? Thank you so much, Chair. Just want to confirm that we do not have any testifiers here at the beginning of your meeting. Thank you very much. Give me one second. Please note for the record, Councilmember Nava has joined us. Mr. Clerk, can we go to the top of the agenda? Communication 23.34. Communication 23.34 report of fund transfers authorized March 16 through 31, 2026 from Controller John Arboles dated April 21, 2026. Chair motion on close file on communication 23.34. Second. Any discussion? Yes, Chair. Councilmember Houston, please. Thank you. Uh just a couple questions here on the request for transfer of funds. Uh first to public works on the street sweeper. Good afternoon, Kelsey Kalua Lewis Public Works. Thank you, Ms. Glue Lewis. Uh you noted that the street sweeper, the estimated and budget amount was 300,000. And now you request another 118,000. So why is it so much higher? I think with the inflation, um when we currently budgeted for it, we thought 300,000 would be enough when we put it out for bid. Um it came in higher, a lot higher than anticipated. Um fortunately, because of the um some of the equipment that we have in our lease account not being able to ship or be received this fiscal year. We had additional funds to cover for the street sweeper. So the 300,000 was in last fiscal year's budget or current fiscal year's budget. Current fiscal year budget. And that so the research that was done at that time estimated about 300,000 then in the prior year when we when we were developing the budget for fiscal year 26. And then what was the kind of the time between what will how much time had lapsed until you decided when out to bid for the um I would want to say maybe like about a year a year because this was the original kind of estimates we did, probably in the initial maybe I want to say December, the early stages of the FY26 planning phase. So about a year from the time of research to then putting out to bid. Yeah, I would say about a year. And those that research was pretty substantial and showing that it was about 300,000 then. Yeah, about 300,000. Because it's quite a significant change there in the value of it, then I would say. Yeah, it was it was quite a um a higher than anticipated cost. I think what we're doing this year is as we progress through the budget process. If we have to update anything, because you know the budget starts in September, right? And then it kind of closes. Our last comments can be in March. I think we're trying our best. We did it this year to kind of move the funds around more accordingly.
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