2008-02-11 Public Access, Open Space and Natural Resources Preservation Commission Minutes

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liaison between the groups, ohana and County and also provide continuity when the administration changes hands. She noted that this is a great opportunity and mentioned that property values are dropping along with the bond rate which is down to about 4 %. Within the past three years, over 200 communities nationwide have passed bonds. She stressed that if the Commission recommend to the Council to use a portion of the 2% fund for management, they will be changing and amending the law that residents just voted on. She strongly opposes this idea. Mr. Campbell asked how much will it cost for bonds. Ms. Hecht replied that it will cost approximately 100 —150 million for every 100,000 of valuation. However, if divided among all properties on Hawaii island it would cost about $30.00 $50.00 monthly for each property owner. Mr. Gilmartin asked how the bond works in the long term. Ms. Hecht replied that it's like a mortgage, with an interest rate over a term of years, principal and interest. It can also be retired early if there's a surplus in funds. Ms. Garcia then invited Ms. Hecht to attend one of their sub - committee meetings to speak more on bonds. (Ms. Deanna Sako provided to the Commission a handout responding to Ms. Hecht's questions presented at the meeting in January regarding the proposal of open space bonds). Ms. Sako, Controller for the County of Hawaii summarized the County's responses outlined in the handout. She noted that the maximum limit of bonds that the County can float is 3.4 billion of which 300 million is outstanding and another 47 million have been approved but not yet issued. The County cannot sustain 3.4 billion dollars, it's not fiscally prudent. The combined amount of bonds issued by the County is approximately 346,500,000 and the current rate for General Obligation bonds is at 4.75 %. In regards to the County floating 100 million dollar worth of bonds the cost would be approximately $35.70 for every 100,000 of assessed value. Mr. Gilmartin asked what the County has bonds for. Ms. Sako replied that the bond proceeds have been used for roads, buildings, sewer infrastructure and land projects. The bonds have rules and conditions which must be met and cannot be used for maintenance. The County is trying to get federal funding for projects of which all is capital. Ms. Sako emphasized that the priority with the Council for issuing bonds has been for legal mandates i.e. Environmental Protection Agency cesspool conversions, health and safety, and Police and Fire station sites. -5-