REP FC 212 02/17/1998 1996-1998 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: Februazy 17, 1998 Re: Comm. No. 636Bi11 No. 180 PLACE: Councilroom TIME: 11:40 A.M. Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Bill No. 180, reports as follows: Bill No. 180, transmitted by Mayor Stephen K. Yamashiro, via Communication No. 636, dated December ] 0, 1997, authorizes the issuance of $40 million general obligation bonds for the purpose of financing various public improvements of the County of Hawaii; fixing the form, denominations, and certain other details of such bonds and providing for their sale; and authorizing the issuance and sale of a like principal amount of general obligation bond anticipation notes in anticipation of the issuance and sale of such bonds and appropriating funds for the costs of the issuance of such bonds. Originally heard on January 6, 1998, this measure was deferred pending further information and reseazch from the Legislative Auditor's Office on general obligation bonds and the collateral issues associated with the proposed $40 million issuance. Currently, approximately $170,000 in bond proceeds remain from the 1996 general obligation bond issuance. These funds, however, have already been appropriated for projects approved in the capital improvements fund. Therefore, this measure proposes to acquire funding for mandated projects and needed infrastructure improvements that lack any funding source. The proposed public improvement projects include, but aze not limited to, the following: • East Hawaii Landfill Closure, Hilo Transfer Station, Materials Recovery Facility & Long Haul Transfer Station - $12 million. • Police 800 Megahertz Conversion - $8 million. • Americans with Disabilities Act (ADA) Compliance - $500,000. • Various Road Improvement Projects - $2.29 million. • Safety Improvement to County of Hawaii Facilities - $16 million. Should this measure pass, the County anticipates to sell investment bonds at approximately 5.25 percent interest. Therefore, total repayment for the 20-year loan is estimated at $67 million, with an annual payment of $3.5 million beginning in the third year of the loan. Due to the uncertainty of funding from the State Legislature, the County's current indebtedness, and the County's ability to pay, members of Your Committee struggled with approving this measure in its current form. Reservations were also expressed regazding funding the closure of the East Hawaii Landfill at an anticipated cost of $12 million. Although mandated, members were apprehensive about funding this project at the current juncture. FC REPORT NO. 212