HomeMy WebLinkAboutREP FC 168 09/05/2007 2006-2008 REPORT OF THE
COMMITTEE ON FINANCE
DATE: September 5, 2007 RE: Comm. No. 630/Bill No. 161
PLACE: Sheraton Keauhou Bay Resort & Spa
TIME: 10:23 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 161, reports as follows:
Bill No. 161, transmitted by Director of Finance William Takaba, via Communication No. 630,
dated August 21, 2007, 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 the County's Honoka`a Large Capacity Cesspool Replacement project and the
Na`alehu and Pahala Large Capacity Cesspool Replacement project; and authorizing the issuance
of 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 the 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:
Proiect Amount
Department of Environmental Management:
Honoka`a Large Capacity Cesspool Replacement $10,163,172
Na`alehu and Pahala Large Capacity Cesspool Replacement $13,933,179
Under the terms and conditions anticipated with regards to such SRF Loan, the County shall
repay over a term of 20 years, the principal amount which shall not exceed $24,096,351 at a
fixed rate of interest, and which shall not exceed the Bond Buyer's 20-year general obligation
bond issue.
FC REPORT NO. 168
w..~_
Communication No. 631
Bill No. 161
Page -2-
Your Committee on Finance is in accord with the purpose and intent of Bill No. 161, and
recommends it pass first reading.
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Hues noes a&E Ex Respectfully submitted,
FORD X
xlcA x COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
JACOBSON X
NAEOLE X
rlLACO x DOMINIC YAGO IR
rncoNC X FC REP T N 168
YosHIMOTO X ADOPTED: SEP ~ 9 2001