HomeMy WebLinkAboutCOM 0805.000 2008-2010William P. Kenoi
Mayor
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
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Nancy E. Crawfokd
Director of Finance
cc: Mike Okumoto, Treasury
County
Finance
25 Aupuni Street, Suite
(808) 961-8234
of Hawaii
Department
2103 • Hilo, Hawaii 96720
• Fax (808)961 -8569
HawaiS County is an Equal Opportunity Provider and Employer
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Nancy E. Crawford
Director
Deanna S. Sako
Deputy Director
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Re: Amending the Bond Authorization Ordinance 08 -148
Enclosed is a bill for an ordinance that amends Ordinance 08 -148, which had authorized
the issuance of general obligation bonds, in an aggregate principal amount not to exceed
$8,000,000, to fund all or a portion of the costs of the Kaloko Housing Program 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 08 -148 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. goS
Ref. w P y
Ref. PQ Pate APR 23 201
Form #: B -52
7/18/91
DEPARTMENT: Finance DATE: April 19, 2010
STAFF CONTACT: Mike Okumoto PHONE: 933 -6240
A. REQUEST:
Approval to amend Ordinances 04 -59, 07 -120, 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.
SIGNED:
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DATE: .yl /thn
J YOSHIMOTO
Chair & Presiding Officer
EMILY I. NAEOLE
Vice Chair
April 22, 2010
J Yoshimoto, Chair
Hawai`i County Council
25 Aupuni Street
Hilo, Hawai`i 96720
RE: Bill No. 248 : An Ordinance Amending Ordinance No. 08 -148 of the County of
Hawai`i, Pertaining to the Issuance of General Obligation Bonds for the Purpose of Funding All or
a Portion of the Costs of the Kaloko Housing Program Project for the County.
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:
J Yoshimoto, Chair
Hawai`i County Council
HAWAII COUNTY COUNCIL
County of Hawaii
Hawaii County Building
25 Aupuni Street
HJo,
Halvah 96720
Disapproved /Date /Refer to FC:
J Yoshimoto, Chair
Hawai`i 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