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Let ' s say that there is a need to take water out there and it <br /> cost $5 million todo for the sake of developangca <br /> particular piece of property. Right now, that funding would <br /> come from state) and/or the water commission . And the water <br /> department would go out and get revenue bonds if they wanted <br /> to. Or there could be an improvement district bond where) the <br /> developer would pay basically the assessment to do it. Now, <br /> if you put the water function under the county then the Mayor <br /> or the council , but your bondedidebt of the (county government <br /> has to include this. <br /> MR. ZUZAK_: ,r But wouldn ' t the County Council , <br /> in effect, still be the body that authorized the improvement <br /> district or the expenditure of the funds as it is now? Rather <br /> than the Mayor? <br /> MR. CADINHA: Yes. Ultimately they are going <br /> - to be the authorizing body but what I 'm saying is if you have <br /> j .) a limit placed on the fixed charges of the county. . . . <br /> MR. ZUZAK: Oh, you are referring to the <br /> limitations rather than to the. . . <br /> MR. CADINHA: Yes , I want to know if you have <br /> looked at that and that was sufficient to carry the water <br /> burden? We are an expansive sort of an island `and if we are <br /> going to have to develop some of these rural areas it is going <br /> to take some money. It ' s really an investment. I 'm getting <br /> hung on this thing, but thatFs my own problem. But if you <br /> have a debt ceiling a lot of your capital expenditures on the <br /> county basis can be viewed as an investment. They need not <br /> be for monuments . If you are taking water out to a rural area <br /> and that arearealizes a gain in value, ultimately there is <br /> more revenue coming into the county but until that value is <br /> realized and the developments go in you could prevent growth ; <br /> stifle growth if you will , with a limitation. Especially with <br /> water. Water costs could be an astronomical undertaking over <br /> the next 10 years for the county.:'___ <br /> MR. ZUZAK: ; Aren ' t the bonds issued generally <br /> against water revenues? <br /> MR. CADINHA: That ' s right. Water revenue <br /> bonds. That is correct. <br /> MR. ZUZAK: -.' I believe what we are talking <br /> about is not exactly the same thing. <br /> MR. CADINHA: You were talking about general <br /> obligation debt? <br /> MR. ZUZ1;K: We were talking about the rela- <br /> tionship to the property tax. <br /> MR. MOSS: I would think in this particular <br /> case you could say that the water bonds that area protected by <br /> the revenue, don ' t come under this kind of limitation. That; <br /> (` s b t,?tax money. They are paid off by revenue. Not by taxes. <br /> - 31 - <br />