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Home My WebLink AboutCOM 0803.000 2008-2010William P. Kenoi A9aror Nancy E. Crawford Director of Finance Enc. cc: Mike Okumoto, Treasury `2211u a`te County Finance 25 Aupuni Street, Suite (808) 961-8234 April 20, 2010 J Yoshimoto, Council Chair and Members of the Hawai'i County Council Hawai'i County Council 25 Aupuni Street Hilo, Hawai'i 96720 of Hawaii Department 2103 • Hilo, Hawaii 96720 • Fax (808) 961 -8569 Hawaii County is an Equal Opportunity Provider and Employer Nancy E. Crawford Director Deanna S. Sako Deputy Director N N S2 3 Cr! fn 0 t ' t-i Re: Amending the Bond Authorization Ordinance 07 -120 Enclosed is a bill for an ordinance that amends Ordinance 07 -120, which had authorized the issuance of general obligation bonds, in an aggregate principal amount not to exceed $40,000,000, to fund costs of the Waikoloa Workforce Housing Project. The proposed amendment to the interest rate and redemption provisions within the bond ordinance will allow the County to issue taxable bonds under the American Recovery and Revinvestment Act (ARRA). Under the provisions of the ARRA, general obligation bonds of the County may be issued as taxable "Build America Bonds" or "Recovery Zone Economic Development Bonds" which are eligible for federal interest subsidy payments. Bond Ordinance 07 -120 is one of five bond ordinances that we are amending at this time. They all authorize the sale of bonds for CIP funding and they have not been fully issued yet. The County is planning a bond issue in July which will refinance current short term bond anticipation notes that are outstanding and borrow an additional amount based on anticipated expenditures during the upcoming months. The County may issue "Build America Bonds" or "Recovery Zone Economic Development Bonds" in the event that market conditions remain favorable for these types of bonds. Since the bond issuance process will begin shortly, we humbly ask for a waiver from the Finance Committee and to have this bill heard at the next Council Meeting scheduled for May 5, 2010. If there are any questions, please do not hesitate to call County Treasurer Mike Okumoto at 933 -6240. Comm. No. O 0 3 Ref. To: LA' ((ALVA ( Ref. Date APR 23 2111f1 Form #: B -52 7/18/91 A. REQUEST: SIGNED: DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Finance DATE: April 19, 2010 STAFF CONTACT: Mike Okumoto PHONE: 933 -6240 Approval to amend Ordinances 04 -59, 07 -12Q 08 -106, 08 -148, and 09 -153 is requested. The proposed amendments to the interest rate and redemption provisions of these ordinances will allow the County to issue taxable bonds under the American Recovery and Reinvestment Act (ARRA). It is also requested that the Finance Committee review be waived due to the minor nature of the changes and because the bond issuance process will begin shortly. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): Ordinances 04 -59, 07 -120. 08 -106, 08 -148, and 09 -153 represent bond ordinances with authorization for CIP funding that has not been fully issued. The County is planning a bond issue in July which will refinance current short term bond anticipation notes that are outstanding and borrow an additional amount based on expected expenditures during the upcoming months. The exact amount will be determined closer to the bond sale date and will be dependent on interest rates and expenditure trends. The American Recovery and Reinvestment Act(ARRA), provides an interest subsidy to the County on taxable bonds, providing an attractive option for financing capital improvements. It is likely that we will issue taxable (vs. the traditional tax - exempt) bonds to take advantage of the interest subsidy. The requested amendments will allow the County to issue Build America Bonds or Recovery Zone Economic Development Bonds that are authorized under ARRA in the event that market conditions remain favorable for these types of bonds. DATE: 777/0 J YOSHIMOTO Chair & Presiding Officer EMILY I. NAEOLE Vice Chaff April 22, 2010 J Yoshimoto, Chair Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 RE: Bill No. 246 : An Ordinance Amending Ordinance No. 07 -120 of the County of Hawai`i, Pertaining to the Issuance of General Obligation Bonds for the Purpose of Funding Costs of the Waikoloa Workforce Housing Project. Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of Hawai`i, this written request is submitted with my approval that the above - referenced matter be waived from the Finance Committee to the full Council for immediate action. In reviewing this matter, timely approval is crucial. It is therefore advantageous that approval is granted and the matter be placed onto the next Council agenda for review. However, in the event this request is denied, for whatever reason, I understand the matter shall be referred to the Finance Committee for placement on its future agenda. Sincerely, Dennis "Fresh" Onishi, Chair Finance Committee Approved /Date /Waive to Council: HAWAII COUNTY COUNCIL County ofHawai't Haxat't County Budding 25 Aupuni Street Hilo, Ilawat'i 96720 Disapproved /Date /Refer to FC: J Yoshimoto, Chair J Yoshimoto, Chair Hawaii County Council Hawaii County Council Hawaii County is an Equal Opportunity Provider and Employer GUY ENRIQUES BRENDA FORD KELLY GREENWELL PETE HOFFMANN DONALD IKEDA DENNIS "FRESH" ONISHI DOMINIC YAGONG