HomeMy WebLinkAboutCOM 0821.000 2008-2010William P. Kenoi
Manor
May 6, 2010
J Yoshimoto, Council Chair and
Members of the Hawai'i County Council
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
f
Nancy E. Crawfor
Director of Finance
Enc.
cc: Treasury
Res. 3cii -t
County
Finance
25 Aupum Street, Suite
(808) 961-8234
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
G
0
—C
Re: Recovery Zone Economic Development Bonds
The American Recovery and Reinvestment Act (ARRA) allows the issuance of taxable
bonds with an interest payment tax subsidy of 35% to 45% by the Federal Government.
With the present interest rate environment, it is economically beneficial for the County to
issue these types of bonds. The bonds with the 45% subsidy are called Recovery Zone
Economic Development Bonds. It is a requirement that the issuer's legislative body
declare the "economic recovery zone" where these monies can be utitlized.
The City and County of Honolulu and the County of Kauai have already issued Recovery
Zone Economic Development Bonds by declaring their whole island as a recovery zone.
We intend to use these precedents to designate the entire geographic area of the County
of Hawai'i as its recovery zone, This will allow the expenditure of these monies without
regard to location within our County.
Enclosed is a resolution that authorizes the creation of a Recovery Zone under the
provisions of the ARRA for the purpose of issuing Recovery Zone Economic Development
Bonds.
Our bond sales period has been set in July, and it is important to have required approvals
in place beforehand, so pre -sale activities can commence without hesitation. We are
requesting a waiver from the Finance Committee and to have this resolution heard at the
next Council meeting scheduled for May 19, 2010.
Should you have any questions, please feel free to contact County Treasurer Mike Okumoto.
Comm. Pdo. S
Ref. To: tr4)( CC11 t, to
got p ate MAY 07 2010
Form #: B -52
7/18/91
DEPARTMENT: Financ e •
STAFF CONTACT: Mike Okumoto
A. REQUEST:
SIGNED:
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
Request passage of the attached resolution. The resolution is a requirement in order to issue taxable bonds
under the American Recovery and Reinvestment Act. Waiver of Finance Committee review is also
, requested. Our bond sales period has been set in July, and it is important to have required approvals in
place beforehand, so pre -sale activities can commence without hesitation.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
The American Recovery and Reinvestment Act allowed the issuance of taxable bonds with a interest
payment tax subsidy of 35% to 45% by the Federal Government. With the present interest rate environment,
it is economically beneficial for the County to issue these types of bonds. The bonds with the 45% subsidy
are called Recovery Zone Economic Development Bonds. It is a requirement that the issuer's legislative
body declare the "economic recovery zone" where these monies can be utitlized. The City and County of
Honolulu and the County of Kauai have already issued Recovery Zone Economic Development Bonds by
declaring their whole island as a recovery zone. We intend to use these precedents to designate the entire
geographic area of the County of Hawaii as its recovery zone. This will allow the expenditure of these
monies without regard to location within our County.
DATE: May 6, 2010
PHONE: 933 -6240
DATE: MAY - 6 2010
J YOSHIMOTO
Chair & Pres,drng Officer
EMILY I. NAEOLE
Vice Cha,r
May 6, 2010
J Yoshimoto, Chair
Hawai`i County Council
25 Aupuni Street
I -Lilo, Hawai`i 96720
RE: Resolution No. 341 -101 : Resolution Authorizing the Creation of a Recovery Zone
Under the Provisions of the American Recovery and Reinvestment Act of 2009 for the
Purpose of Issuing Recovery Zone Economic Development Bonds; Designation of the
Local Suballocation of the Volume Cap with Respect to the Recovery Zone Economic
Development Bonds to General Obligation Bonds of the County of Hawai`i
Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of
Hawaii, 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.
Dennis "Fresh" Onishi, Chair
Finance Committee
Approved /Date /Waive to Council: DisapprovedfDate /Refer to FC:
HAWAT`I COUNTY COUNCIL
County of Ilawa'i
Hawar'i Camp Building
25 Aupuni Street
Ht(o, Hawai'i 96720
W J Yoshimoto, Chair J Yoshimoto, Chair
Hawai`i County Council 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