Honolulu officials are moving quickly to pass a law that would allow Mayor Kirk Caldwell to tap into a fiscal stability fund to prepare for or counteract any potential impacts to the city that might occur as a result of the spread of the new coronavirus.

An existing fiscal stability fund contains about $120.6 million — that’s out of a nearly $3 billion total operating budget. But it can only be used when certain, clearly defined economic or revenue conditions are triggered, or if the governor or president declares a state of emergency due to a natural disaster.

The triggers listed in the ordinance: a 2% increase in unemployment over three fiscal quarters, a 2% drop in total net taxable real property from the preceding year, a 2% decline in general fund and highway fund revenues from the previous year, a 5% decline in hotel room tax revenues from the preceding year or an increase of 5% (of the previous year’s revenues) in nondiscretionary expenditures.

Gary Kurokawa, Caldwell’s chief of staff, said the conditions take at least months to trigger and that the state of emergency declarations clause refers to earthquakes, tsunamis, flooding or other natural disasters.

It does not, however, specifically allow the money to be used to battle a fast-spreading virus.

Bill 35, co-introduced by Council Chairman Ikaika Anderson and Budget Chairman Joey Manahan, adds language allowing the fund to be tapped if the governor or president declares a state of emergency due to “an occurrence, or imminent threat thereof, which results or may likely result in substantial injury or harm to the population in the City and County of Honolulu, or substantial damage to or loss of property of residents of the City and County of Honolulu.”

On Wednesday, Caldwell issued an emergency proclamation in response to the fast-spreading COVID-19 on the heels of a similar action at the state level taken by Gov. David Ige. Maui Mayor Mike Victorino and Kauai Mayor Derek Kawakami did the same. Hawaii County Mayor Harry Kim signed a similar proclamation last week.

Caldwell, in a letter to Council members Wednesday, said the change to the city ordinance “would allow more flexibility in the use of this special fund in the case of imminent threat to the people of the City and County of Honolulu.”

Kurokawa declined to speculate on what money coming out of the contingency account might go toward, but stressed that the account is only designed to be a last resort. Departments would be expected to deplete unused funds they might have first, he said.

“We’re just being proactive,” he said. “This is just something that would be available if we needed it.”

Council bills need to pass three readings before they are sent to the mayor’s office for his action.

The state proclamation provides Ige the ability to move more quickly to protect the community or provide emergency relief if necessary by giving him “funding flexibility” to buy supplies and equipment, as well as the authority to suspend any laws that could impede emergency functions.

Caldwell has also convened a working group — comprised of the mayor’s Cabinet and an outside medical expert — to drive policy discussions about the coronavirus.