HomeMy WebLinkAboutREP FC 014 01/06/2009 2008-2010REPORT OF THE
COMMITTEE ON FINANCE
DATE: 1 /6/2009
PLACE: Council Chambers
TIME: 1:03 p.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Re: Comm. No. 58/Bill No. 12
Your Committee on Finance, to which was referred Bill No. 11, reports as follows:
Bill No. 12, transmitted by Finance Director Nancy Crawford, via Communication No. 58, dated
December 19, 2008, amends Ordinance No. 04-59, as amended, pertaining to the issuance of general
obligation bonds for the purpose of financing various public improvements.
The language to be added to the 2004 bond authorization ordinance is the same as language that is
included in all subsequent bond ordinances. U.S. Treasury regulations require that the County declare its
intention to use funds to reimburse itself for capital expenditures made in advance of the bond issuance.
Because the County will sometimes be using certain short-term options, such as bond anticipation notes,
to supply funds for CIP in advance of the bond issuance, this language must be included. It also provides
us with the important flexibility to manage cash flow and debt to the best advantage of the County.
Councilmember Ford asked where the $7 million increase in this amendment was going. Director
Crawford advised that they were only adding language to be able to repay the CoLmty for money
expended up front while waiting to sell the bonds. The $7 milEon was added when the original ordinance
was first amended.
Councilmember Hoffmann asked that if until 2004 this language had not been included in bond
ordinances but has been since that time to allow the County to reimburse itself. Director Crawford stated
that this was correct and that the department has always sought Council approval to sell bonds. The
problem was the projects didn't always flow as quickly as we had hoped, and we would end up holding
money and having arbitrage issues. The result is we may do short-term borrowing and then repay ,
ourselves. Mr. Hoffmann asked if in other words the department is actually paying out money in order to
get the projects moving more quickly. Ms. Crawford stated that was correct.
Councilmember Ford stated that the bond authorization for the West Hawaii Civic Center Cied the
funding to specific projects and she would like to see that from now on.
FC Report No. 14
Comm. No. 58
Bill 12
Fage 2
Your Committee on Finance is in accord with the purpose and intent of Bill No. 12, and recommends it
pass first reading.
sao
AYES NOES A&E ES
ENRIQUES X
FORD X
GREENWELL X
HOFFD7ANN X
IKEDA X
NAEOLE X
ONISHI X
YAGONG X
YOSHIP~OTO X
Respectfully submitted,
COMMITTEE ON FINANCE
DOMINIC YAGONG
FC REPOR"
ADOPTED: