Laserfiche WebLink
REPORT OF THE <br />COMMITTEE ON FINANCE <br />DATE: 1 /6/2009 <br />PLACE: Council Chambers <br />TIME: 1:03 p.m. <br />Council Chair and Members <br />Hawaii County Council <br />Hilo, Hawaii 96720 <br />Re: Comm. No. 58/Bill No. 12 <br />Your Committee on Finance, to which was referred Bill No. 11, reports as follows: <br />Bill No. 12, transmitted by Finance Director Nancy Crawford, via Communication No. 58, dated <br />December 19, 2008, amends Ordinance No. 04-59, as amended, pertaining to the issuance of general <br />obligation bonds for the purpose of financing various public improvements. <br />The language to be added to the 2004 bond authorization ordinance is the same as language that is <br />included in all subsequent bond ordinances. U.S. Treasury regulations require that the County declare its <br />intention to use funds to reimburse itself for capital expenditures made in advance of the bond issuance. <br />Because the County will sometimes be using certain short-term options, such as bond anticipation notes, <br />to supply funds for CIP in advance of the bond issuance, this language must be included. It also provides <br />us with the important flexibility to manage cash flow and debt to the best advantage of the County. <br />Councilmember Ford asked where the $7 million increase in this amendment was going. Director <br />Crawford advised that they were only adding language to be able to repay the CoLmty for money <br />expended up front while waiting to sell the bonds. The $7 milEon was added when the original ordinance <br />was first amended. <br />Councilmember Hoffmann asked that if until 2004 this language had not been included in bond <br />ordinances but has been since that time to allow the County to reimburse itself. Director Crawford stated <br />that this was correct and that the department has always sought Council approval to sell bonds. The <br />problem was the projects didn't always flow as quickly as we had hoped, and we would end up holding <br />money and having arbitrage issues. The result is we may do short-term borrowing and then repay , <br />ourselves. Mr. Hoffmann asked if in other words the department is actually paying out money in order to <br />get the projects moving more quickly. Ms. Crawford stated that was correct. <br />Councilmember Ford stated that the bond authorization for the West Hawaii Civic Center Cied the <br />funding to specific projects and she would like to see that from now on. <br />FC Report No. 14 <br />