HomeMy WebLinkAboutCOM 1168.101 2006-2008
The Honorable Pete Hoffmann
Chairperson
Hawaii County Council
25 Aupuni Street
Hilo, HI 96720
RE: Bill for an Ordinance Authorizing the Issue of General Obligation Bonds (Bill 285).
Chairperson Hoffman and Council member:
This is my written statement asking the Council to vote against the proposed bond float,
Bill 285.
Borrowing money at this time is not prudent for many reasons. I will take this time to
explain those reasons:
First, the Council wants to borrow more money than ever before when it is obvious that
revenues will decrease next tax cycle. A decline in real estate values will bring down
the amount of real property taxes collected and decrease the amount of money available to
service the County's debts. This may also have negative effects on the County's
operating budget, especially with the 20 or so new jobs created this year.
Second, the County will have to borrow more money in a year or two to upgrade the Police
radio tower system. This is federally mandated and is projected to cost upwards of
$80,000,000. Debt service on a $112,000,000 bond is projected to be 12% of total County
expenditures next year. Adding $80,000,000 to this amount will push the projected 12% to
more than 15% which will have a negative effect on the County's credit rating and
significantly increase the amount of interest the County must pay. This is a great
example of poor foresight.
Third, cost estimates for the biggest project, the West Hawaii Civic Center, were done at
the height of the construction boom on the Big Island. Since there has been a
significant decrease in new construction over the past year it would be wise to have the
project re-bid.
Fourth, it is an election year and we will have a new mayor and council next year. It is
unfair for the current Council to impose such great debt on the next Council when it is
possible that the new Council may not want to do these projects.
Fifth, the Council has selected projects that do not seem relevant to the general public.
For example $2,190,000 to maintain trails in Waimea is excessive. $2,190,000 would be
better spent trying to solve the traffic problem in Waimea. This an example of poor
planning and prioritization, others include the free bus system, 2% land fund and the
proposed sustainability department. All of these are examples of the Council trying to
distract the public while ignoring pertinent issues like our fixing our infrastructure
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Please vote against this bond.
ee
1503 Kikaha Street
Hilo, HI 96720
(808) 960-3138