Committee on Finance Meeting – June 2, 2026

The Committee on Finance held its 37th session on June 2, 2026, at 11:30 a.m. in the Hilo Council Chambers (note: the meeting start time of 10:30 a.m. specified in the agenda source was not reflected in the transcript, which recorded an 11:30 a.m. start). Vice Chair James Houstis presided with eight members present (Kimball, Galimba, Viegas, Inaba, Oneshi, Kirkowitz, and Kaugiwata) and Councilmember Conley Kleinfelder absent. The committee addressed several communications, a resolution, and a bill.

Consent Calendar

• Communication 24.35 – Report of change orders authorized April 1–15, 2026, from Finance Director Diane Nakagawa. Closed file with a motion by Ms. Kirkowitz, second by Mr. O’Nishi. Approved unanimously with eight votes.
• Communication 24.36 – Report of change orders authorized April 16–30, 2026. Discussion occurred regarding change order 5 for Waikiauka Park (hazardous soil remediation and comfort station additions). The committee clarified that the county contract is $4.8 million, separate from a state contract. Closed file with a motion by Ms. Kirkowitz, second by Mr. O’Nishi. Approved unanimously (eight votes).
• Communication 574.2 – Second quarter report of non-capitalized donations, January 1–March 31, 2026. Closed file with a motion by Ms. Kirkowitz, second by Mr. O’Nishi. Approved unanimously (eight votes).

Public Comments & Testimony

No public testimony was offered.

Discussion Items

• Resolution 575-26 – Authorizes acceptance of donations of securities or personal property not covered under capitalization procedures for fiscal year 2026-2027. Finance Director Nakagawa explained it is an annual authorization to accept donations upon receipt, with quarterly reporting. Councilmember Kirkowitz noted the resolution originated from former council chair Aaron Chung to improve efficiency. Forwarded to the council with a favorable recommendation (motion by Ms. Kirkowitz, second by Mr. O’Nishi; eight votes in favor).
• Bill 163 – Establishes an Aina Kupuna dedication program for real property tax relief. Introduced by Councilmember Houstis. The bill would create a voluntary 10-year dedication for qualifying properties (20 acres or less, owned by a descendant of a person who owned the property before January 1, 1926). Properties would be taxed at the minimum rate with possible waiver of penalties and interest. Councilmember Houstis emphasized preservation of generational family lands. Discussion included:
  • Real Property Tax Administrator Lisa Muir noted that the county cannot estimate the number of parcels or revenue impact because current data cannot link ownership across 100 years. Referencing Maui County’s similar program, there are 36 applications with a revenue loss of $1,678 in the past year and an average tax break of $27,996.
  • Councilmember Kimball raised concerns about proving historical ownership and potential conflicts with agricultural dedication definitions. Suggested a sunset date or temporary pilot to assess impacts.
  • Councilmember Kaugiwata supported the idea but worried about unknown fiscal impacts given county obligations.
  • Councilmember Galimba questioned the treatment of agricultural tourism and farm stays under the bill.
  • Administrator Muir provided clarification on several points: the 100-year date vs. Maui’s 80 years; the definition of “residential rental uses for less than six months” (non-agricultural); that penalties and interest would be waived for two years prior to qualification; that the applicant must be a named owner on the record; and that properties with agricultural uses already taxed below $10,000 might not qualify due to the minimum tax threshold.
  • Councilmember Houstis explained the rationale for the 100-year date (pre-war, prior to significant development) and noted that the onus of proof is on the landowner.
  • Councilmember Houstis moved to postpone Bill 163 to the June 16, 2026 committee meetings for further discussion. The motion was seconded by Mr. O’Nishi and carried unanimously (eight votes, one absent).

Key Outcomes

• Communication 24.35: Closed file (8-0-1).
• Communication 24.36: Closed file after discussion (8-0-1).
• Communication 574.2: Closed file (8-0-1).
• Resolution 575-26: Forwarded to council with favorable recommendation (8-0-1).
• Bill 163: Postponed to June 16, 2026 committee meetings (8-0-1).

The meeting adjourned at 12:20 p.m. The committee continued with the Communications, Reports, and Council Oversight Committee at 1:00 p.m.