2009-03-09 Public Access, Open Space and Natural Resources Preservation Commission Minutes

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sale such as Puapua`a and Kaiholena. She wants to know why the County is not pursuing these properties and strongly feels that the 2% funds should be used for acquisition and not park maintenance. Ms. Sako noted that the current interest rate is 5.25 % and with the bond it would go up higher. The County's current bond rating is "A" by two bond raters and "AA" by one bond rater. Due to the economy the market has changed and bond insurers have lost their credit rating. The premiums are so great which makes the bond rating extremely important and critical. At this time the County is trying not to borrow the money unless needed. In addition to the bonds that are outstanding, the Council has approved 119 million in bonds that has not yet been issued. By State law the County is getting very close to their 15% cap and based on Government Finance Officers Association (GFOA) standards, it should not be over 15% of total expenditures. The total budget for next fiscal year is 16 million less than the current budget. As the expenditures go down the 15% will also go down. Ms. Hecht asked what the County's bond rating is based on and how much money is in reserves. Ms. Sako replied that the 2 million in the "rainy day fund" does not get very far and the bond rating is affected by many different factors. Ms. Hecht asked. Ms. Sako if the County floated bonds. Ms. Sako replied that they floated 50 million. Ms. Hecht said that she doesn't feel that now is the time to consider the bond, maybe after the budget is approved. However she told the Commission to vote to send a strong message to the Mayor and Council to not use the 2% monies to balance the budget. Mr. Flores asked if certain amount of properties would need to be identified before going out for a bond. Ms. Sako replied that the Council is requiring that they be specific to what properties and amount is being applied for. The investors who are buying the bonds want to know what the monies are being used for. WRITTEN COMMUNICATION Communication No. 09 -001: Letter to Chairman Yoshimoto and Council Members from Mayor Billy Kenoi regarding nomination of Steven Hirakami to the Hawaii County Public Access, Open Space and Natural Resources Preservation Commission for Council District 5. Communication No. 09 -002: Letter to Chairman Yoshimoto and Council Members from Mayor Billy Kenoi regarding Mr. Kenoi's comments and recommendations on the 2008 Annual Report from Public Access, Open Space and Natural Resources Preservation Commission. Ms. Garcia noted that both communications will be filed. OFFICE OF THE CORPORATION COUNSEL'S REPORT Ms. Amy Self had nothing to report.