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REPORT OF THE <br />COMMITTEE ON FINANCE <br />DATE: May 3, 2005 Re: Comm. No. 209/Rill No. 79 <br />PLACE: Council Chambers <br />TIME: 9:04 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. 79, reports as follows: <br />Bill No. 79, transmitted by Council Member Bob Jacobson, via Communication No. 209, dated <br />March l8, 2005, authorizes the issuance of $10,000,000 general obligation bonds of the County <br />of l lawai`i for the purpose of acquiring land for public access, open space and natural resource <br />preservation; fixing the form, denominations, and certain other details of such bonds and <br />providing for their sale to the public; and authorizing the issuance and sale of a like principal <br />amount of general obligation bond anticipation notes in anticipation of the issuance and sale of <br />such bonds. <br />The approval of Bill No. 79 will allow the County to acquire lands or property with priority <br />given to coastal lands. The longstanding needs are for: the preservation of coastal areas, open <br />space, cultural and historic sites, recreation areas, natural resources, and the provision of public <br />access to the ocean, mountains, recreation, hunting and gathering areas. <br />Pursuant to Chapter 3, Section 5-33(c), Hawaii County Charter, the Director of Finance shall <br />negotiate loans and the issuance and sale of bonds and notes when authorized by the Council. <br />Communication No. 209.2 from Mayor Harry Kim, dated April 17, 2005, provided comments 011 <br />Bill No. 79, which states that based on the advice from the County's Bond Counsel, Brian Ilirai, <br />he is unable to support this bill. Mr. Hirai advised that selling bonds and placing the proceeds in <br />a special fund for the purpose of acquiring property at some future date could be considered a <br />'premature issuance' and would certainly raise arbitrage and tax exemption questions. <br />Originally heard on April 19, 2005, this measure was postponed to allow Council Members time <br />to review this measure more thoroughly. <br />Bill 79, Draft 2 was referred to Your Committee, dated April 20, 2005, from Council Member <br />Bob Jacobson, which makes a number of technical and non -substantive changes recommended <br />by the Bond Counsel. <br />Your Committee heard testimony in favor to the measure from Susan O'Neil. <br />William Takaba, Director of Finance, explained that the amendments in Draft 2 identify the <br />purpose and form of the ordinance. Ile also explained that the purpose limits the scope of the <br />bond issuance. <br />FC REPORT NO. 99 <br />