2010-11-03 Cost of Government Commission Minutes

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This involves putting together an offering document. As an example of our document that we distribute to the bond investors it’s called an official statement. We do the documentation and the quotes issue and the administration. We also do financing for localized benefits through improvement districts and community facilities districts. Currently we are managing two improvement districts.Shortly we’ll be working on sewer connection loan program and during the past year we have looked at numerous proposals with different types of financing such as economic development bonds, energy bonds, and other CFPs. We have a staff of six, which includes three clerks, two accountants and myself, the Treasurer. We do are own bank reconciliation, improvement district administration and other inaudible calculations. That’s it for me. MS. NICHOLSON: Before we proceed, would any of the commission members like to ask questions of the Treasurer? Or do we want to hear? MR. TAKABA: I just need to ask Mike to explain how interest rates have affected revenue feature as well as our expenses. MR. OKUMOTO: As you know, interest rates are vey low right now. We take the idle funds and we put it in various types of investments. And depending on when we need the funds we set the term for when we need it. Maybe four years ago, we earned about $12 million off of the interest. Now, you can get rates maybe like 25 basis points which is like a quarter percent. I don’t think we’re going to break a million. So that’s a juristic change in our situation as far as investment income. MS. NICHOLSON: Any questions? MS. O’HARA: You mentioned the sewer collection loan program. Could you describe it a little bit more. MR. OKUMOTO: This is new program that we’re implementing for the Honokaa closure of the large capacity cesspools. This involves working with the local financial institutions and the county will guarantee loans to those who would not otherwise qualify. So it would inaduible the financial institutions to go ahead and make the loans knowing that the county will stand behind the loan. MS. O’HARA: And this is the hook-up to the sewer that the county has hooked up in Honokaa? MR. TAKABA: We were required to hook up. MS. O’HARA: I’m a little familiar with that. So there’s of course some risk in guarantee to your own inaudible, these loans? MR. OKUMOTO: Yes. MS. O’HARA: The county has assessed that and feels comfortable with that? 3