HomeMy WebLinkAboutREP FC 138 08/16/2005 2004-2006 REPORT OF THE
COMMITTEE ON FINANCE
DATE: August 16, 2005 RE: Comm. No. 388/Bill No. 133
PLACE: Council Chambers
TIME: 8:37 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 133, reports as follows:
Bill No. 133, transmitted by Director of Finance William Takaba, via Communication No. 388, dated August 3,
2005, authorizes the Mayor of the County of Hawaii to enter into an intergovernmental agreement for a State
Water Pollution Control Revolving Fund Loan (SRF Loan) for wastewater public improvement projects; and
authorizing the issuance of $5,60Q,000 general obligation bonds of the County of Hawaii for the purpose of
financing qualified Wastewater Public Improvements of the County of Hawaii.
Pursuant to the County Procedures Manual for Participation in the Hawaii State Revolving Fund Loan Program
prepared by the Wastewater Branch of the Hawaii Department of Health in April 1994, part of the loan
application process requires a "resolution or ordinance passed by the County Council which authorizes [he SRF
Loan application and identifies the dedicated source(s) of revenue (i.e., general obligation bonds) which will fund
the project and repayment of the loan with interest." The Council's authorization of the issuance of general
obligation bonds will serve as a pledge of its general obligation authority as security for repayment of the loan and
interest.
The County of Hawaii, pursuant to Section 342D-54, Hawaii Revised Statutes, has submitted an application for
an SRF Loan to the Director of the Department of Health, State of Hawaii, to finance the construction of the
wastewater projects as follows:
project Amount
Department of l:'nvironmental Management
Honokohau Harbor Effluent Reuse $2,600,000
Wailoa SPS Renovation $3,000,000
Under the terms and conditions anticipated with regards to such SRF Loan, the County shall repay over a tear of
20 years, the principal amount which shall not exceed $5,600,000 at a fixed rate of interest, and which shall not
exceed the Bond Buyer's 20-year general obligation bond issue.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 133, and recommends it pass first
reading.
smc
AYES NOES A&E EX Respectfully submitted,
ARAKAKI X
RIGA X COMMITTEE ON FINANCE
HOFFMANN X _ `
HOLSCHUH X I CS / ~
IKEDA X ~ 4u~---. ~
ISBELL X VIRG IA ISBELL, CHAIR
JACOBSON X FC REPORT NO. l38
PILAGO _ X SEP Q g 2~~5
SAFARIK _ X ADOPTED.