HomeMy WebLinkAboutREP FC 151 10/07/2003 2002-2004REPORT OF THE
COMMITTEE ON FINANCE
DATE: October 7, 2003
PLACE: Council Chambers
l'IME: 10:25 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Re: Comm. No. 358/Bill No. 154
Your Committee on Finance, to which was referred Bill No. 154, reports as tollows:
Bill No. 154, transmitted by Director of Finance William Takaba, via Communication No. 358,
dated September 23, 2003, authorizes the Mayor of the County of Hawaii to enter into an
intergovernmental agreement for a State Water Pollution Control Revolving Fund Loan (SRF)
for wastewater public improvement projects; and authorizes the issuance of $20,000,000 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 t Iawai'i State Revolving Fund
Loan Program prepared by the Wastewater Brands of the Hawaii Department of health in April
1994, part of the loan process requires a "resolution or ordinance passed by the County Council
which authorizes the SRF loan application and identities the dedicated source(s) of revenue (i.a.
general obligation bonds) which will fund the project and repayment of the loan with interest"
fhe 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
l~he County of Hawaii, pursuant to Section 342D-54, I Iawai'i Revised Statutes, has submitted
an application for a SRh Loan to the Director of the Department of Health, State of Hawaii, to
finance the construction of the wastewater projects as follows:
Project
Deparlmenl of Environmen[al MunuKement
Kalaniana'ole Interceptor Sewer Rehabilitation
Kealakehe Sewage Effluent Reuse
Komohana Heights Collector Sewer
Queen Lili`uokalani Collector Sewer
Deparlmenl ofPahlic Works:
Replacement of Large Capacity Cesspools
Amount
$6,000,000
$2,000,000
$2,000,000
$2,000.000
$8A00,000
FC REPOR"C NO. I51
Under the terms and conditions anticipated with regards to such SRf Loan, the County shall
repay over a term of twenty years the principal amount drat cannot exceed $20,000,000 at a lixed
rate of interest, which shall not exceed the Bond Buyer's 20-year general obligation bond issue.
Managing Director Dixie Kaetsu clarified the SRF is similar to a bond in that the County will get
$20,000,000 from the State: however the County must draw down the monies as it expends it.
Also. Ms. Kaetsu explained that the gang cesspool situation for the plantations is being assisted
by Dennis Tulang, to support the communities.
Your Committee on finance is in accord with the purpose and intent of Bill No. 154, and
recommends it pass first reading.
smc
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CHIING X
SA FARIK X
ARA KAKI X
ELARIONOFF X
HOLSCHUH X
JACOBSON X
REYNOLDS X
TULANG X
T\'LER X
Respectfully submitted
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AARON S.Y. CFIUNG, CHAIR
FC RF,POR1' NU. 1'
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