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COUNTY OF HAWAI`I ORDINANCE NO. STATE OF HAWAI`I BILL NO. 74 AN ORDINANCE AUTHORIZING THE ISSUANCE OF A GENERAL OBLIGATION BOND OF THE COUNTY OF HAWAPI IN A PRINCIPAL AMOUNT NOT TO EXCEED TWO HUNDRED SEVENTY-FIVE THOUSAND DOLLARS FOR THE PURPOSE OF FINANCING A PORTION OF THE COSTS OF CONSTRUCTING A PUBLIC WATER SYSTEM SERVING IKI PLACE, KOHANAIKI HOMESTEADS, NORTH KONA, HAWAI`I; FIXING THE FORM, DENOMINATION, AND CERTAIN DETAILS OF SUCH BOND; PROVIDING FOR THE ISSUANCE AND SALE OF SUCH BOND AND FOR OTHER MATTERS OR ACTIONS PERTAINING THERETO. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`I: SECTION 1. Findings and Determinations. It is hereby found and determined that: A. Pursuant to Chapter 12, Hawai`i County Code 1983 (2016 Edition, as amended) (the "Code"), and Resolution Nos. 634-16, 164-23, and 542-24, the Council of the County of Hawaii (the "County") has authorized the creation, definition and establishment of a Water System Improvement District (the "Improvement District") for the purpose of undertaking and financing the costs of a project consisting of the construction, acquisition, and installation of a public water system to serve Iki Place, Kohanaiki Homesteads, North Kona, Hawaii (the "Project"). B. In order to assist in the financing of the Project, the United States of America, acting by and through the Department of Agriculture Rural Development on behalf of the Rural Utilities Service ("USDA") has offered to make a loan to the County (the "USDA Loan") in a principal amount not to exceed Two Hundred Seventy -Five Thousand and No/100 Dollars ($275,000.00) and bearing interest at a rate not to exceed Two Percent (2.0%) per annum. USDA has also offered to make a grant to the County (the "USDA Grant") to provide further assistance for the Project in an amount not to exceed Eight Hundred Twenty -Five Thousand and No/100 Dollars ($825,000.00). C. It is advisable and desirable for the County to obtain the USDA Loan. In order to secure the payment of the USDA Loan, it is necessary, advisable and desirable that the County authorize, issue and sell to USDA general obligation bonds of the County in a principal amount equal to the principal amount of the USDA Loan. D. Costs of the Project, net of the USDA Grant and other available funds (other than temporary advances of funds), will be assessed against the "assessment units" within the Improvement District, pursuant to Chapter 12 of the Code. Collections of such assessments will be used to reimburse the County for payments of the principal of and interest on the bond authorized hereunder and for administrative expenses of the County with respect to the Improvement District and the bond.