It was Spectacular but not Exceptional

In 1975, the Hawai'i State Legislature found that rapid development had led to the destruction of many of our State's exceptional trees.  They passed into law The Exceptional Tree Act.  The Act recognizes that trees are valuable for their beauty, and they perform crucial ecological functions.  The law mandated each county to establish a County Arborist Advisory Committee which enacts regulations to protect trees of exceptional stature.  Each county has its own program, set of rules and operating guidelines.

 

Each county enacted their own Exceptional Tree Program.  In simple terms, to protect and preserve our beautiful trees, our government will offer tax breaks to property owners to maintain a tree, or trees, that have been designated by the government arborists as being exceptional.  The program offers a tax credit of up to $3,000 per year for verifiable maintenance of your exceptional tree.

 

To be considered for exceptional tree status, the tree or grove of trees must meet one or more of the following criteria:

 

• Historic or Cultural Value
• Age
• Rarity
• Location
• Size
• Esthetic Quality
• Endemic Status

 

 

I heard about this program many years ago shortly after I paid almost $3,000 to trim a very large Kiawe tree located in my back yard.  The tree is about 60-70 feet tall.  We had lights installed to show off her beauty.  If you climb Koko Head, it is so big you can clearly make it out.  It’s the glowing one near the middle of the photo.

 

It is such an unusual specimen for a Kiawe tree that I thought it surely would be classified as one of Hawaii’s Exceptional Trees.  I could then use the tax break to keep it looking great for years to come.  There’s an application you need to fill out if you wish to be considered.  Here’s the link:

 

https://www.honolulu.gov/rep/site/dpr/hbg_docs/2015_Revised_ET_NOMINATION_FORM.pdf

 

 

It took someone from the City about 6 weeks to respond to my application.  The call I received was to allow the government arborist(s) to come and do a site inspection.  On my inspection day I was surprised to have seven, yes seven! individuals show up to look at my tree.  They tapped on it.  They measured the circumference of the trunk.  They took lots of pictures.  They were there for almost an hour, then told me they’d get back to me with their decision.  The bonus I did get was finding the history of my tree.

 

It turns out that in 1906 most of the Kiawe trees were planted in Kapiolani Park.  A few of those trees were also planted in the Portlock area.  My tree is 119 years old!

 

Four weeks after my inspection I received a letter from the county arborist.  It turns out my tree was “Spectacular” in many ways, but unfortunately, it was not, in their professional opinion, “Exceptional”.  I guess those arborists take their job seriously!  Despite not getting the tax break to maintain our tree, we’ve maintained it.  While I was not successful with the program, I suggest you do the research to see if you’ll qualify.  If you have a tree on your property that you think could be exceptional, why not apply?  It costs nothing to do so.  If you are granted exceptional status, it will help you pay to keep one of Hawaii’s special trees maintained for future generations.

 

 

Our tree has been a source of joy for not only our family, but for all the homes around us.  And how do I know my neighbors loved our tree?  Because after 119 years, the Thursday storm finally did the tree in.  Every neighbor reached out on Friday to express their sorrow for the loss of “our neighborhood tree”.  Some heard the crash, others noticed something missing from their normal view.  It was so unique to have something that large and beautiful.

 

 

Yes, the tree did damage to my house too.  The house can get repaired, but the tree is too damaged to save.  She was deemed Spectacular, but for everyone in the neighborhood and to our family, she was Exceptional.

 

So far, the insurance people have been outstanding.  My agent stopped by personally the next morning (Friday).  My insurance adjuster called me before 10:00 am.  In a future article I’ll report on the claims process.  How’s the claims process for your insurance company?

 

 

 

 

Bug Your Accountant Now!

My processing staff thought it would be a great idea to remind you that if you are planning on obtaining any mortgage financing, or any type of loan request, between now and May 1^st, to ask your tax preparer for your previous two-years of tax returns now.  Why?  We are now entering tax season.  In years past, clients requesting documents from their tax person were met with delays, because they’re busy filing returns for other clients.

 

Avoid any potential delays.  If you need your documents, ask for them now.  Have your tax preparer send you digital copies of your most recent two years of personal, and if applicable, business tax returns.  And if you’re self-employed, make sure they send the K-1’s too.

 

 

 

 

 

And now the week’s economic news…….

 

No Surprises from Fed

There was plenty of major economic news this week, but few surprises. The Fed meeting had little impact on mortgage markets, and the latest inflation data matched expectations. Mortgage rates ended the week a bit lower.

 

Fed officials keep a close eye on inflation, and the PCE price index is their favored indicator. In December, Core PCE rose 0.2% from November, matching expectations. Core PCE was 2.8% higher than a year ago, the same annual rate of increase as last month. While far below its recent peak, further progress toward the 2.0% target of the Fed remains challenging, and this desired level has not been achieved since February 2021.

 

Gross Domestic Product (GDP) is the broadest measure of economic activity. During the fourth quarter of 2024, U.S. GDP rose at an annualized rate of 2.3%, below the consensus forecast of 2.6% and down from 3.1% during the third quarter. Consumer spending and government spending were two of the biggest contributors to the growth during the quarter, while a decline in inventories subtracted substantially from it. In addition, business investment dropped for the first time in more than three years.

 

As expected, the Fed made no change in the federal funds rate on Wednesday, and the statement released after the meeting was very similar to the prior one. Investors did initially focus on one alteration which removed a reference to inflation making progress toward the target level of 2.0%. However, during the press conference following the meeting, Chair Powell reassured investors that this change in language was not intended to convey any new information. Beyond this, Powell responded to questions about the impact of potential policy changes under the new administration by saying that the level of uncertainty has increased in the short-term, but future decisions will continue to be based on incoming economic data.

 

Next Week

Investors will continue to look for additional guidance from Fed officials on their plans regarding future monetary policy. For economic reports, the ISM national manufacturing index will be released on Monday and the services sector index on Wednesday. The JOLTS report measuring job openings will come out on Tuesday. The key Employment report will be released on Friday, and these figures on the number of jobs, the unemployment rate, and wage inflation are always closely watched.

 

 

 

 

Until next week….