HomeMy WebLinkAboutREP FC 016 01/07/2003 2002-2004OFFICE INFORMATION ONLY
Meeting: Council—January 23, 2003
Action: Filed. Pursuant to Comm. 37.2 (transmitting replacement Bill 45), motion
to close file on the bill was adopted. FC -16 recommended passage of Bill
16, Draft 2; however no Draft 2 was generated prior to the new bill going
forward.
Re: Bill 16; Comm. 37 (2002-2004 term); FC -16 not adopted)
REPORT OF THE
COMMITTEE ON FINANCE
DATE: January 7, 2003 Re: Comm. No. 37/Bill No. 16
PLACE: Council Chambers
'MME: 11:40 a.m.
Council Chair and Members
Hawaii County Council
lilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 16, reports as follows:
Bill No. 16, transmitted by Mayor harry Kim via Communication No. 37, dated
December 5. 2002, authorises the issuance of $21,000,000 in general obligation bonds for the
purpose of financing various public improvements ofthe County of liawai'i: fixes the form,
denominations, and other details of such bonds; provides for their sale to the public: and
authorizes the issuance and sale of a like principal amount of tfhc issuance and sale of such
bonds.
According to Mayor Kim, the bond proceeds would he used to fund the following projects:
1) Ke Ala O Kcauhou (Alii Parkway) $9.000.000
2) ADA Curb Cuts $2.900.000
3) ADA Parks Facilities Renovations $L600.000
4) West I lawai'i Civic Center— Design/Construction $2,000.000
5) Fire — Land Acquisition/Renovation $2.500.000
6) Puna County Complex $1.250.000
7) Police Communications Facility (Radio Shop) $ 750.000
Mayor Kim explained that the Finance Director had developed general guidelines to be followed
on the issuance of general obligation bonds for capital projects. The guideline, dated
October 25, 2002, states that smaller bond amounts ($10 million - $20 million) would be issued
annually. and that the debt limit must stay within the legal limit 15110 of the total assessed value
and within "prudent debt service limit of 15"% of general expenditures." The County debt is
currently at 10.0% of its general expenditures. While the administration planned to issue 510
million in bonds, this fiscal year, it is requesting a $21 million issuance "because ofthe
magnitude of the County's immediate needs_" A debt service projection schedule over 20 years
for $21 million at an interest rate of 5% was provided.
Your Committee amended this measure by approving a $14 million general obligation bond float
for the Alii Parkway. ADA Curb Cuts and ADA Parks Facilities Renovations.
F(REPORT NO. 16
During its discussion, Committee Members requested a presentation by the Mayor or
Administration at its next Finance Committee meeting on the merits 1br the four remaining
projects not included in the amended bill.
pursuant to Chapter 3. Section 5-3.3(c). I lawaii County Charter, the Director of Finance shall
negotiate loans and the issuance and sale of bonds and notes when authorized by the Council.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 16. as amended
to Draft 2, and recommends it pass first reading.
smc
Respectfully Submitted
ON FINANCII
ADOPTED:
N'ES %OEs A&h: F\
CHt1NC
X
SAFARIK
X
ARAKAKI
X
ELARIONOFF
X
HOLSCHOH
X
JACOBSON
X
LEITHEAD-TODD
X
REYNOLDS
X
TYLER
X
Respectfully Submitted
ON FINANCII
ADOPTED: