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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: May 31, 2011 Re: Comm. No. 213 /Bill 53 <br /> PLACE: Council Chambers <br /> Hilo, Hawaii <br /> TIME: 1:33 p.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawai`i 96720 <br /> Your Committee on Finance, to which was referred Bill 53, reports as follows: <br /> Bill 53, transmitted by Finance Director Nancy Crawford via Communication 213 dated May 17, <br /> 2011, a bill for an ordinance authorizing the Mayor to enter into an intergovernmental agreement <br /> for a State Water Pollution Control Revolving Fund Loan (SRF) of $2,300,000 for this (Pua <br /> Sewage Pump Station — Pump Replacement) project; and authorizing the issuance of general <br /> obligation bonds for the purpose of financing this improvement project. <br /> Director of Environmental Management Frank DeMarco, Director of Finance Nancy Crawford <br /> appeared before Your Committee. Mr. DeMarco stated several reasons for this improvement <br /> project. Ms. Crawford explained the benefit of State Water Pollution Control Revolving Fund <br /> Loan (SRF) at a low 1 /2 % interest and clarified this is only a preliminary loan agreement. <br /> Furthermore, Ms. Crawford does not recommend exchanging general obligation bonds funding <br /> other projects for this project when an opportunity like this is available. <br /> Pursuant to the County Procedures Manual for Participation in the Hawai`i State Revolving Fund <br /> Loan Program, prepared by the Wastewater Branch of the Hawai`i Department of Health in April <br /> 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 source(s) <br /> of revenue (i.e., general obligation bonds) which will fund the project and repayment of the loan <br /> with interest." The Council's authorization of the issuance of general obligation bonds will serve <br /> as a pledge of its general obligation authority as security for repayment of the loan and interest. <br /> Your Committee on Finance is in accord with the purpose and intent of Bill 53, and recommends <br /> it pass first reading. <br /> dkr <br /> AYES NOES A &E EX Respectfully submitted, <br /> BLAS X <br /> FORD x COMMITTEE ON FINANCE <br /> HOFFMANN X <br /> IKEDA X <br /> PILAGO X 7Z�- -- <br /> SMART x BRENDA FORD, CHAIR <br /> YAGONG X FC REPORT NO. 66 <br /> YOSHIMOTO X ADOPTED: ,J 1 5 2011 <br />