HomeMy WebLinkAboutREP FC 119 09/20/2011 2010-2012 REPORT OF THE
COMMITTEE ON FINANCE
DATE: September 20, 2011 Re: Comm. No. 355/Bill 97
PLACE: Council Chambers
West Hawaii Civic Center
Kailua-Kona, Hawai`i
TIME: 11:07 a.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Your Committee on Finance, to which was referred Bill No. 97, reports as follows:
Bill No. 97, transmitted by Director of Finance Nancy Crawford, via Communication No. 355
dated September 7, 2011, is a bill for an ordinance amending Chapter 12, Article 4 of the
Hawaii County Code 1983 (2005 Edition, as amended), Relating to Finance and Payment.
The purpose of this bill is to clarify the uses of various funds as discussed in Chapter 12 relating
to Improvement Districts. This bill primarily addresses the appropriate uses of the improvement
district revolving fund and the changes allow for the advance payment of pre-formation costs.
These costs are expected to be reimbursed when the bonds are issued after the improvement
district is formed. Additionally, the bill clarifies that the administrative fees currently collected
are used for administrative costs.
Deputy Director of Finance Deanna Sako and Treasure Mike Okumoto appeared before Your
Committee.
Council Member Hoffmann requested more information regarding what qualifies as a pre-
formation cost. Mr. Okumoto explained a pre-formation cost would include contracting services
and/or engineering studies prior to the start of construction. He further explained this is the first
time an Improvement District has been formed for a Sewer project and they needed a funding
source for pre-formation costs.
Your Committee on Finance is in accord with the purpose and intent of Bill 97, and recommends
it pass first reading.
be
AYES NOES A&E EX Respectfully submitted,
BLAS X
FORD X COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
ONISHI X
PILAGO X
SMART X BRENDA FORD, CHAIR
YAGONG X FC REPORT NO. 119
YOSHIMOTO X ADOPTED: OCT 0 5 2011