ORD 2017-073 2016-2018 - Laserfiche WebLink

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ie:;;?‘f r COUNTY OF HAWAII STATE OF HAWAII BILL NO. 77 ORDINANCE NO. 1.7 73 AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE COUNTY OF HAWAII IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED$2,437,000 FOR THE PURPOSE OF FINANCING A PORTION OF THE COSTS OF CONSTRUCTING A PUBLIC SEWER SYSTEM SERVING THE LONO KONA SUBDIVISION; FIXING THE FORM, DENOMINATION,AND CERTAIN DETAILS OF SUCH BONDS; PROVIDING FOR THE ISSUANCE AND SALE OF SUCH BONDS; AND PROVIDING FOR OTHER MATTERS OR ACTIONS PERTAINING TO THE ISSUANCE AND SALE OF THE BONDS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Findings and Determinations. It is hereby found and determined that: A. Pursuant to Chapter 12, Hawaii County Code 1983 (2005 Edition, as amended) (the "Hawaii County Code), and Resolution Nos. 264-14, 519-14 and 72-15,the Council of the Countyof Hawaii(the"County")has authorized the creation, definition and establishment of a Sewer System Improvement District (the "Improvement District") for the purpose of undertaking and financing the costs of a project consisting of the construction, acquisition and installation of a public water system to serve the Lono Kona Subdivision(the"Project"). B. In order to assist in the financing of the Project,the United States of America,acting through the Department of Agriculture,Rural Utilities Service("USDA")has offered to make a loan to the County (the "USDA Loan") in a principal amount not to exceed Two Million Four Hundred Thirty-Seven Thousand and No/100 Dollars($2,437,000) and bearing interest at a rate not to exceed Two and One-Eighth Percent(21/8%)per annum. USDA has also offered to make a grant to the County (the "USDA Grant") to provide further assistance for the Project in an amount not to exceed Four Million Twenty Four Thousand Eight Hundred and No/100 Dollars ($4,024,800). C. It is advisable and desirable for the County to obtain the USDA Loan. In order to secure the payment of the USDA Loan, it is necessary, advisable and desirable that the County authorize, issue and sell to USDA general obligation bonds of the County in a principal amount equal to the principal amount of the USDA Loan.