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Home My WebLink AboutCOM 0209.002 2004-2006 MtV O/ yL~ "4 Harry Kim ,pixie Kaetsu Mayor Managing Director • 1 t r~ ~';:'d. P~t`~r C;.7-lenf~><t~ ks Deputy Managing Director ~ouutp of ~aiuai`i ~~lc.'._, 25 Aupuni Street, Room 215 Hilo, Hawaii 96720-4252 • (808) 961-8211 Fax (808) 961-6553 KONA: 75-5706 Kuakini Highway, Suite 103 Kailua-Kona, Hawaii 96740 (808)329-5226 • Fax (808)326-5663 April 17, 2005 The Honorable Stacy Higa, Chairperson, and Members Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Finance Committee Agenda for April 19, 2005 Bill 79, Authorizing the Issuance of General Obligation Bonds for Land Acquisition Thank you for the opportunity to comment on Bill 79. This Bill would authorize the issuance of up to $10 million in general obligation bonds to be used for acquiring lands or property entitlements to preserve the public's access to and enjoyment of public lands and open space. There are many requirements established by the federal government that state and local entities must comply with to maintain the tax exempt status of their bonds and to make sure that no liability for arbitrage is created. William Takaba, the Finance Director, has discussed this bill with the County's Bond Counsel, Brian Hirai. Mr. Hirai has advised Mr. Takaba that selling bonds and placing the proceeds in a special fund for the purpose of acquiring property at some future date could be considered a "premature issuance" and would certainly raise arbitrage and tax exemption questions. Mr. Hirai advises against this. Based on this advice, I cannot support this bill. I continue to support site-specific measures to acquire important lands, such as Honu`apo. When a parcel is identified as worthy of public acquisition, a specific appropriation should be made and funding acquired for that specific site. Thank you for considering my comments on Bill 79. Alo a, I ~~1/t2~/1 L Q any Kirrh- Comm. No. 209• Z MAYOR Ref. To: Ref. Date APR- APR-^-- cc: William Takaba, Director of Finance Hawaii County is an equal opportunity provider and employer.