2009-01-12 Public Access, Open Space and Natural Resources Preservation Commission Minutes

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Ms. Hecht talked about the approval of resolutions by the Hawai.`i County Council (Council) authorizing the County to purchase lands i.e. Puaagua`a, Pa`o`o and K.aiholena. She highlighted that since property taxes are expected to diminish, the estimated amount deposited into the 2% fiord will probably go down fiom 4 million to 3.5 million. This amount could be used as the down payment for a 50 million dollar bond. She noted that over 200 communities across the United States have floated bonds. This opportunity could give the County a better position to attract matching fiords from State and Federal government. In addition she strongly opposes the use of the 2% monies towards park maintenance and stresses. that it's a betrayal of voter's trust. Ms. Garcia asked Ms. Hecht what she wants the Commission to do. Ms. Hecht asked if the Commission would be comfortable writing a letter to the Council recommending that monies from the 21/6 fund be used as a down payment for an open space bond. Ms. Garcia asked where the money would come from if the County does not have enough money in the 20A fund. Ms. Hecht replied that the bonds would be limited to how much could be paid by Property taxes. Mr. Flores noted that in -a prior meeting with a representative from the County Finance Department (FD), it was discussed that if the county leverages bonds it affects their fiscal ratings which affects the interest of everything else.. He suggested that instead of imposing a 50 million dollar band which could create a "shock factor" the amount should be left open which could open the way for more support. Ms. Hecht noted that the 50 million dollar bond amount was based on a 4 million dollar deposit when property values were at their highest. If the Council authorized that, you wouldn't go out and use the money all at once, it would also depend on whether the property was available for purchase. In addition, Ms. Hecht stated that as far as the bond rating goes, there is many other factors and not only how much is borrowed as the County is significantly below the fifteen percent rate that is set by the State constitution. Ms. Springer asked Ms. Hecht if the 50 million dollar bond could be clearly stated as an example given along with an example of a bond at a lower rate. Ms. Garcia expressed her concern that there will be no money for management and maintenance if the bond monies can only be used for acquisition. Ms. Hecht replied that property values am depressed and projected to be de- valued by 30 to 50 percent which means you can still acquire properties and have it developed as funds become available. Ms. Springer asked Ms. Self if she could comment on Ms. Hecht's question regarding a change to the open space ordinance. Ms. Self replied that this question should be answered by Mr. Harry Yada or someone from the FD. The Council would have the authority to change the ordinance; however the FD would have to address the open space bond request. -2-