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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> <br /> DATE: September 5, 2007 RE: Comm. No. 630/Bill No. 161 <br /> PLACE: Sheraton Keauhou Bay Resort & Spa <br /> TIME: 10:23 a.m. <br /> Council Chair and Members <br /> Hawaii County Council <br /> Hilo, Hawaii 96720 <br /> Your Committee on Finance, to which was referred Bill No. 161, reports as follows: <br /> <br /> Bill No. 161, transmitted by Director of Finance William Takaba, via Communication No. 630, <br /> <br /> dated August 21, 2007, authorizes the Mayor of the County of Hawaii to enter into an <br /> intergovernmental agreement for a State Water Pollution Control Revolving Fund Loan (SRF <br /> Loan) for the County's Honoka`a Large Capacity Cesspool Replacement project and the <br /> <br /> Na`alehu and Pahala Large Capacity Cesspool Replacement project; and authorizing the issuance <br /> of general obligation bonds of the County of Hawaii for the purpose of financing qualified <br /> Wastewater Public Improvements of the County of Hawaii. <br /> Pursuant to the County Procedures Manual for Participation in the Hawaii State Revolving Fund <br /> Loan Program prepared by the Wastewater Branch of the Hawaii Department of Health in <br /> <br /> April 1994, part of the loan application process requires a "resolution or ordinance passed by the <br /> County Council which authorizes the SRF Loan application and identifies the dedicated <br /> source(s) of revenue (i.e., general obligation bonds) which will fund the project and repayment <br /> of the loan with interest." The Council's authorization of the issuance of general obligation <br /> bonds will serve as a pledge of its general obligation authority as security for repayment of the <br /> loan and interest. <br /> The County of Hawaii, pursuant to Section 342D-54, Hawaii Revised Statutes, has submitted <br /> an application for an SRF Loan to the Director of the Department of Health, State of Hawaii, to <br /> finance the construction of the wastewater projects as follows: <br /> Proiect Amount <br /> Department of Environmental Management: <br /> Honoka`a Large Capacity Cesspool Replacement $10,163,172 <br /> Na`alehu and Pahala Large Capacity Cesspool Replacement $13,933,179 <br /> Under the terms and conditions anticipated with regards to such SRF Loan, the County shall <br /> repay over a term of 20 years, the principal amount which shall not exceed $24,096,351 at a <br /> fixed rate of interest, and which shall not exceed the Bond Buyer's 20-year general obligation <br /> bond issue. <br /> FC REPORT NO. 168 <br /> <br />