HomeMy WebLinkAboutCOM 0120.000 2004-2006 ~~r w y._
Harry Kim ~,c~ "~''F:•~. William Takaba
Mnyor Director
Nancy E. Crawford
~i'•., i•`` Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
(808) 961-8234 Fax (808) 961-8248
February 16, 2005
Gary Safarik, Chairman and RI:[.ENdi ,
Members of the Hawaii County Council 3. ~s By fie.
Hawaii County Council pa»___._...
25 Aupuni Street cA°">y Cou"cll
Hilo, Hawaii 96720
Re: Amendment to the 1999A General Obligation Bond Ordinance
As of June 30, 2004 there was approximately $11.8 million of unspent proceeds from the County of
Hawai'i's 1999 general obligation bond issuance. Bond Counsel is concerned about these unspent
funds, which could jeopardize the County's ability to borrow in the future. Because general obligation
bonds are tax-exempt, it is important that they be used as quickly as possible for their tax-exempt
purpose, and the Internal Revenue Service becomes concerned with issuers who "over issue" bonds.
Bond Ordinance No. 99-41 restricted the use of bond proceeds to specific projects and amounts
noted within the text of the ordinance. The projects identified for funding did not always match with
actual projects that were ready to go forward, resulting in some bond proceeds, which should have
been spent within three years, still remaining unspent. Presently, the County has CIP projects which
are in progress or ready to start, but are lacking funds. In order to expedite the completion of current
projects and the use of the bond money, we recommend allowing use of the remaining funds for any
appropriated projects, without the restriction of having to be listed within the ordinance.
Enclosed is a bill for an ordinance to amend a previous bond ordinance (Ordinance 99-41
adopted on April 12, 1999, as amended by Ordinance 00-56 adopted on May 17, 2000 and as
amended by Ordinance 04-61 adopted on May 27, 2004) to allow the use of remaining bond funds for
any appropriated projects.
If there are any questions, please do not hesitate to call Nancy Crawford, Deputy Director of Finance.
' ~~w '
William Ta aba
Director of Finance
APPROVED:
L~
Harry Kim I ZD
Mayor Comm. No.--~--~
Ref. To: r v
Enc. Ref, date 1 2~~
131-Q 3~ ~ Hewai'i County is an Equal Opportunity Provider and Employer
Form B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Finance DATE: 02/15/05
STAFF CONTACT: Nancy Crawford PHONE: x8092
A. REQUEST:
Request amendment to Ordinance No. 99-41, as amended by Ord 00-56 and Ord 04-61, to allow other
projects to be funded with the bond proceeds.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
Ordinance No. 99-41 restricted use of bond proceeds to specific projects and amounts. The projects
identified for funding did not always match with actual projects that were ready to go forward. The result is
that some bond proceeds, which should have been spent within three years, still remain unspent. The
County has CIP projects which are in progress or ready to start, but are lacking funds. In order to expedite
the completion of current projects and the use of the bond money, we recommend allowing use of the
remaining funds for any appropriated projects.
SIGNED: DATE: ~-/~S~Of
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