HomeMy WebLinkAboutRES 282 Draft 01 1988-1992COUNTY OF HAWi0.~, w,r,S'~ATE OF HAWAII
RESOLUTION No. 282 9~
A RESOLUTION PROVIDING FOR THE ASSIGNMENT
OF $7,545,000 OF THE COUNTY OF HAWAII
PRIVATE ACTIVITY HOND ALLOCATION
TO THE STATE OF HAWAII
WHEREAS, Section 146 of the Internal Revenue Code of 1986, as
amended (the "Federal Law"), in effect, establishes a $150 million
ceiling on the principal amount of tax-exempt private activity bonds
which may be used within the State of Hawaii during any calendar
year; and
WHEREAS, the Federal Law allows each state to establish its own
formula to allocate the tax-exempt private activity bonds among its
governmental units by enacting state law; and
WHEREAS, Chapter 39B, HRS, modifies the Federal allocation
formula to provide more flexibility and to better serve the needs of
issuers of Hawaii private activity bonds; and
WHEREAS, Chapter 39B, HRS, allocates an amount equal to 5.03
percent of the annual State ceiling of $150 million or the amount of
$7,545,000 for the 1990 calendar year to the County of Hawaii; and
WHEREAS, the County of Hawaii does not plan to use all of its
tax-exempt private activity bond allocation for 1990; and
WHEREAS, Chapter 39B, HRS, provides that the County of Hawaii,
by resolution of its governing body, may assign all or part of its
private activity bond allocation to the State of Hawaii for a
specified calendar year.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HAWAII that of the $7,545,000 allocated to the County of Hawaii for
the 1990 calendar year pursuant to Chapter 39B, HRS, $7,545,000 be
and is hereby assigned to the State of Hawaii, said assignment to be
carried forward as permitted by Federal Law and applied to the
issuance of private activity bonds for qualified projects, with
preference being given to qualified projects located in the County
of Hawaii.
BE IT FURTHER RESOLVED that the County Clerk transmit copies of
this resolution to the Director of Finance of the State of Hawaii.
DATED at Hilo, Hawaii, this 6th day of February 1991.
INTRODUCED BY:
~~
COUNCIL MEMBER
COUNTY COUNCIL
County of Hawaii
Hilo, Hawaii
I hereby certify that the foregoing RESOLUTION was by
the vote indicated to the right hereof adopted by the COUNCIL
of the County of Hawaii on February 6 , 1991
ATTEST:
U CLERK CHAIRMAN & PRESI ING OFFICER
ROLL CALL VOTE
AYES NOES ABS EX
ARAKAKI X
DE LIMA X
DOMINGO X
HALE
KOKUBUN
LAI X
MAKUAKANE
RUDDLE X
SCHUTTE
8
Reference
RESOLUTION NO. 2~~1
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t of Finance
Lorraine R. Inouye
Mayor
William Takaba
Director
25 Aupuni Street, Room 118 • Hilo, Hawau 96720 • (8081 961-8234 • Fax (808) 961-8248
January 25, 1991
The Honorable Russell Kokubun, Chairman,
and Members of the County Council
County of Hawaii
25 Aupuni Street
Hilo, HI 96720
SUBJECT: PRIVATE ACTIVITY BOND ALLOCATION
Enclosed, please find a proposed resolution providing for
the assignment of $7,545,000 of the County of Hawaii
private activity bond allocation to the State of Hawaii.
Background
Under federal law each State is limited as to the amount
of private activity bonds which may be issued as
tax-exempt bonds each calendar year. The State of Hawaii
was limited to $150,000,000 for the calendar year 1990.
Under Chapter 39B, Hawaii Revised Statutes, 5.03%, or
$7,545,000, was allocated to the County of Hawaii.
According to a letter we received on January 22, 1991 from
our bond counselors, Wood Dawson Smith & Hellman, "If the
County has no projects under the headings indicated for
which it anticipates it might issue bonds prior to
December 31, 1993, the County might consider assigning its
allocation back to the State prior to February 15, 1991."
The State could then carry forward such amounts, together
with any of its own allocation and apply it to private
activities during the neat three years. The State could
give preference to projects with the County in making such
allocations.
If the County fails to assign this allocation to the
State, then such allocation will be lost. If the County
elects to assign its allocation, such assignment should be
effected by resolution adopted prior to February 15 1991.
COMM. NO..----•-~6`~
To: Council
Honorable Russell Kokubun, Chairman
Page Two
January 25, 1991
Since we do not anticipate issuing any private activity
bonds in the near future, the administration recommends
that a resolution be adopted which would assign our
private activity bond allocation of $7,545,000 back to the
State of Hawaii.
A i n
We would appreciate it very much if the enclosed
resolution be adopted by the County Council prior to
February 15, 1991. Based on the meeting schedule of the
County Council and its committees, it does not appear that
the Finance Committee would be able to review this
resolution prior to the neat Council meeting.
Would you consent to waiving Finance Committee review so
that the February 15 deadline can be met? Thank you for
whatever assistance you can provide in expediting the
passage of this resolution.
WILLIAM TAKABA
Director of Finance
Enclosures -Re~ ~,~~
APPROVED:
LORRAINE R. OUYE
Mayor