HomeMy WebLinkAboutREP FC 066 05/31/2011 2010-2012 REPORT OF THE
COMMITTEE ON FINANCE
DATE: May 31, 2011 Re: Comm. No. 213 /Bill 53
PLACE: Council Chambers
Hilo, Hawaii
TIME: 1:33 p.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Your Committee on Finance, to which was referred Bill 53, reports as follows:
Bill 53, transmitted by Finance Director Nancy Crawford via Communication 213 dated May 17,
2011, a bill for an ordinance authorizing the Mayor to enter into an intergovernmental agreement
for a State Water Pollution Control Revolving Fund Loan (SRF) of $2,300,000 for this (Pua
Sewage Pump Station — Pump Replacement) project; and authorizing the issuance of general
obligation bonds for the purpose of financing this improvement project.
Director of Environmental Management Frank DeMarco, Director of Finance Nancy Crawford
appeared before Your Committee. Mr. DeMarco stated several reasons for this improvement
project. Ms. Crawford explained the benefit of State Water Pollution Control Revolving Fund
Loan (SRF) at a low 1 /2 % interest and clarified this is only a preliminary loan agreement.
Furthermore, Ms. Crawford does not recommend exchanging general obligation bonds funding
other projects for this project when an opportunity like this is available.
Pursuant to the County Procedures Manual for Participation in the Hawai`i State Revolving Fund
Loan Program, prepared by the Wastewater Branch of the Hawai`i Department of Health in April
1994, part of the loan application process requires a "resolution or ordinance passed by the
County Council which authorizes the SRF loan application and identifies the dedicated source(s)
of revenue (i.e., general obligation bonds) which will fund the project and repayment of the loan
with interest." The Council's authorization of the issuance of general obligation bonds will serve
as a pledge of its general obligation authority as security for repayment of the loan and interest.
Your Committee on Finance is in accord with the purpose and intent of Bill 53, and recommends
it pass first reading.
dkr
AYES NOES A &E EX Respectfully submitted,
BLAS X
FORD x COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
PILAGO X 7Z�- --
SMART x BRENDA FORD, CHAIR
YAGONG X FC REPORT NO. 66
YOSHIMOTO X ADOPTED: ,J 1 5 2011