HomeMy WebLinkAboutCOM 0636.001 1996-1998 OJ~!~+y.._._N!y~
J. CURTIS TYLER, III Phone: (808) 961-8273
Cauncilmembrr ~
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C~L~~~Y CQU~~C~~,J :.i ~ .I
County of Hawaii
Hawaii County Building
25 Aupuni Street C'; ~ , , ' i,
Hilo, Hawaii 96720
January 2, 1997
TO: JAMES ARAKAKi, Chairperson
Hawaii County Council
FROM: J. CURTIS TYLER, III, Councilmember
Hawaii County Council
RE: Correspondence from Hugo von Platen Luder, dated
December 26, 1997
Please refer the attached correspondence from Hugo von Platen
Luder, dated December 26, 1997 to the Committee on Finance. The
attached letter refers to Comm. 636 Bill 180, that will be
heard before this committee on January 6, 1998.
Thank you.
:ls
Presented. F`
i'F~F. ~1`0:
December 26, 1997 ~ - '"i'~ !'!i
CC
To: West Hawaii Today COU, ;
3ubj: "Yamashiro wants to borrow record 40 million"
It's hard enough to fine someone qualified from the business
sector to run for the office of Mayor under normal circumstances.
I would think that a businessman would give much thought before
stepping in to manage n business, such as the County of Hawaii,
which is already floundering. Who would want to run a business
that has very few assets and whose borrowing (especially after
another, additional debt of 40 million) are essentially an its
last legs ? One would need an "IOCOCCa" to come forth to assume
responsibility of the Counties debts and its empty coffers. Steve
Yamashiro, in my mind, is the beat Mayor we could ask for and has
done an exceptional job managing this county. Unfortunately,
when his term expires, he becomes history. We need to give much
thought before acquiring more debt. In the process we need to
find a very savvy business person to run for mayor. Let the new
mayor decide which path to take, for he or she is the one who
will have to live with it. In the meantime, let's learn to bite
the bullet while trying to create a turnaround in our economy. We
could begin by lowering taxes, having much, much leas regulation,
even deregulation, for every law we enact, we remove two
consensual laws. And, if you want a top of the line mayor, raise
his salary to the level of a proper executive These are just a
very few ways to start moving toward stability.
RespectfulplyG~J~
Hugo von~aten Lnder
P, O, Hoz 786
Holualoa, Hawaii 96725
w w ~o~ o aS3.~ ~y.<N,~o,~ : Yam~.shiro wants
a 0 R O s 0 a -wi C~ ° m P y ry
w ° ~ ° ° y ~ ° ~ ~ w. ~ ~ to borrow record
yof0~^n'3< a~orowy~o~p~lC
Hwy x~w o' 3~£esoa~,~ ~ $40 million
- ~ ~ ~ ° ° ° ~ w E ~ o y P3' ~ D ~ By JASON ARMSTRONG
o ~ a ° 3'~ K ° d: ~ " ^n ~'c'c 3 ~ West Hawaii Today
w `1 ~ ~ y o ^ w ~ ° a ° HILO -Mayor Stephen Yamashiro wants to
i ° w $ _ 3 c, o w c m ~ ~ ~ y ~ borrow a record $40 million for unspecified con-
~ a a o ~ N s y py ~ o o ~ s[ruction projects a[ a time when Hawaii County is
'o°' w 3 ~ w o ~ m ~ ~ 00 ~ facing declining revenues and reduced slate grants.
p• ~ ' : a = 3 y' aO ° (n Council members, who [his week debated award-
w < - £ z o S ing 5 percent pay raises to 525 of the county's
~ ~ 3 'o' m w : ~ o o n' ~ ~ w ~ unionized workers, said they want to know the full
,9 ~ o ~ c 3 ~ a ~ 3,~ ~ w 3 o c a m financial impact before approving [he largest In:m
3 c ~ a~ g ~ ~ ~ _ a ~ w ? ~ in county history.
C When asked about the timing of Yamashiro s
~o ^ m o O
' ~ ~ ~ a~' ° 7 0 ~ o w ~ s a ~ request to bortow up to $40 million, finance admin-
^d.< a o. ^ ~ £ 'off is[ta[ors declined comment, and did not attempt to
g ~ o, ~ ° c ~ ~ c o 3' m ~ defend the proposal.
_ Q ~o - c ~ £ Yamashiro could spend the money on any of an
-v°o o E ° ~ o w ~ £ w ~ m ~ ' ~ m ~ estimated 100 approved projects totaling more than
c < °a ° w n ° 3 ~ o ~ $100 million.
p £ ° io °c ° 3t S m ~ y ° The county currently is repaying $108 million in
m S ° ° £ o ~ w o ~'o o a a ~ private loans and $27.7 million i[ borrowed from
o ^ e 3 ° ~ ~ ~ ~ ~ ~ c ~ ~ ~ O [he state, which amount to $16.9 million in yearly
ao - . p~
c 3 principal and interest charges, Finance Director
3"3 ~ ~ ~ ° o o N~w' ~ Harry Takahashi said. .
' ° w ~ 3 ~ g° ~ ~ ~ w E. ~ We are currently running out of funds to allot;'
a 3 ~ "0co° c 3 `D w^ ~ g ~ m Takahashi said.
.~7 " " o q ° ° N a ~ The county is expecting a 20-year loan ut about
C 5.3 rcent annual interest, which would result in a
2 a ° o a 3 ~ o_ ° o a ^ ° ~ total cost of $67 million, Treasurer Frank Manalili
£ E ~ 3 w o £ ac said.
3 ~ ~ ° w o' ~ c ~ ~ w, °^S The loan will no[ threaten the county's favorable
_ a ; w ~ T ~ ~ ~ ~ w "A" credit rating, which allows it [o borrow money
0 0 o ~ " c w ~ ~ ~ ^v a[ relatively low interest rates, Manalili said.
^ 9 a ~ o c ~ r9 ° 3 ° o ~ The money, until i[ is spent, will go into an intcr-
~ ~ " ~b9, O0 ~ 3 f9 'o est-bearing account to offset some of the early
~ ~ a ~ 3' ? ~ ' ~ a ? ? C interest charges, he added.
Taxpayers will be charged about $75,OW, based
on the cos[ of the county's $30 million bond Moat in
1996, to sell the government bonds, he said.
Manalili declined to comment on whether the
county should increase its debt while economic
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