Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Infrastructure Funding topic
No spam. Unsubscribe anytime.
Committee clears transfers of GET-surcharge revenue to Water Department for capital projects
Summary
BFED recommended first-reading approval for two bills to allocate and allow transfers of general excise tax (GET) surcharge revenues for Department of Water Supply capital projects, including a $25 million allocation.
The committee voted to recommend passage on first reading of two bills (37 and 38) that change how Maui County handles general excise tax (GET) surcharge revenues for water infrastructure.
Bill 37 would allocate $25,000,000 of GET-surcharge revenue to the Department of Water Supply for capital improvement projects. Bill 38 would revise County Code language so that GET-surcharge revenues may be transferred to the Department of Water Supply for the duration of projects, tracked in a dedicated sub‑fund, and returned to the appropriate GET fund on project completion. Budget staff said the change is an accounting move to allow the enterprise-funded water department to recognize capital assets for audit and financial reporting purposes.
"Funding under the GET fund for Department of Water Supply projects needs to be transferred to the department so they can recognize those capital assets within the department, because they are an enterprise fund," Budget Director Leslie Milner told the committee. Department of Water Supply fiscal officer Orkin Asadara confirmed the department will track the funds separately and create subfund/index codes once the Council approves the change.
Deputy Water Director Kimo Landgraf and other water staff joined the meeting and said the department will create a subfund and project index for the GET-funded projects; they also said certain listed projects include a $10 million integration of public and private water systems (added in the FY25 budget cycle) and a $5 million filter replacement at the Kamole Kai (Kamole) Weir water treatment plant.
Committee members asked whether the water department has the resources and personnel to manage the tracking; Water staff confirmed they will. Members also asked whether similar treatment would be needed for Department of Environmental Management funds; Budget Director Milner said DEM's special funds are not enterprise funds and do not require the same transfer for asset recognition.
The committee moved both bills together. The motion carried on a vote with eight members in favor and one excused. The committee recommended both bills for first reading and asked staff to provide subfund identifiers and additional documentation on the projects and amounts.
