HomeMy WebLinkAboutREP FC 078 05/15/2001 2000-2002 REPORT OF THE
COMMITTEE ON FINANCE
DATE: May 15, 2001 Re: Comm. No. 215/Bill No. 59
PLACE: Council Chambers
TIME: 10:10 A.M.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 59, reports as follows:
Bill No. 59, transmitted by Director of Finance William T. Takaba, via Communication No. 215, dated
May 1, 2001, authorizing the issuance of $8,000,000 general obligation bonds for the purpose of
financing various water system improvements of the Department of Water Supply of the County of
Hawaii; fixing the form, denominations, and certain other details of such bonds and providing for their
sale to the public; and authorizing the issuance and sale of a like principal amount of general obligation
bond anticipation notes in anticipation of the issuance and sale of such bonds.
The approval of Bill No. 59 enabled the Department of Water Supply to retain the consulting firm, R.W.
Beck, to prepare a County of Hawaii comprehensive water rate study. The study resulted in a
recommendation of new rates, which were adopted by the Water Board on February 27, 2001.
Included in the study was afive-year capital improvement spending program totaling approximately
$59.2 million. One of the key assumptions in the development of the water rates was the issuance of
General Obligation Bonds over the five-year period in the amount of $30.0 million, and further that the
first issuance would be done by the end of fiscal year 2000-2001 in the amount of $7.5 million. The
request for $8.0 million is to provide sufficient funds to pay for the Department's share of bond issuance
costs.
Pursuant to Chapter 3, Section 5-3.3(c), Hawaii County Charter, the Director of Finance shall negotiate
loans and the issuance and sale of bonds and notes when authorized by the Council.
For informational purposes, Mr. Tyler voted kanalua twice.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 59 and recommends it
pass first reading.
smc
AYES NOES A&E EX
Respectfully submitted
CHUNG X
PlslccHlo x COMMITTEE ON FINANCE
ARAKAKI X
ELARIONOFF X
JACOBSON X
LEITHEAD-TODD X
SAFARIK AARON S.Y. CHUNG, C AIR
TYLER X FC REPORT NO. 78
YAGONG X ADOPTED: