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Form #: B -52 <br />7/18/91 <br />DEPARTMENT: Financ e • <br />STAFF CONTACT: Mike Okumoto <br />A. REQUEST: <br />SIGNED: <br />DEPARTMENT OF FINANCE <br />REQUEST FOR COUNCIL ACTION <br />Request passage of the attached resolution. The resolution is a requirement in order to issue taxable bonds <br />under the American Recovery and Reinvestment Act. Waiver of Finance Committee review is also <br />, requested. Our bond sales period has been set in July, and it is important to have required approvals in <br />place beforehand, so pre -sale activities can commence without hesitation. <br />B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br />The American Recovery and Reinvestment Act allowed the issuance of taxable bonds with a interest <br />payment tax subsidy of 35% to 45% by the Federal Government. With the present interest rate environment, <br />it is economically beneficial for the County to issue these types of bonds. The bonds with the 45% subsidy <br />are called Recovery Zone Economic Development Bonds. It is a requirement that the issuer's legislative <br />body declare the "economic recovery zone" where these monies can be utitlized. The City and County of <br />Honolulu and the County of Kauai have already issued Recovery Zone Economic Development Bonds by <br />declaring their whole island as a recovery zone. We intend to use these precedents to designate the entire <br />geographic area of the County of Hawaii as its recovery zone. This will allow the expenditure of these <br />monies without regard to location within our County. <br />DATE: May 6, 2010 <br />PHONE: 933 -6240 <br />DATE: MAY - 6 2010 <br />