HomeMy WebLinkAboutREP FC 394 05/21/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: May 21, 1991 Re: Comm. 2512
Place: Councilroom
Time: 10 : 00 a .m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill 429 , reports
as follows :
Bill 429 proposes to amend Ordinance 90-75, the Capital Improvement
Budget for Fiscal Year 1990-91, by adjusting the appropriations and
funding sources for several wastewater projects, as the scope and
financing of these projects have changed.
Communication No. 2512 from the Finance Director, dated April 26,
1991, states the Kealakehe Effluent Disposal System was not ready
for construction in time to meet the federal project deadline.
However, the federal government agency agreed to increase the
Federal Grant allocation from $3, 619 , 000 to $3, 744 , 017 and transfer
that amount to the Hilo Wastewater Treatment and Conveyance
Project . As a result of this federal allocation and a reevaluation
of the overall Hilo project, the amount requested from the State
(Water Pollution Control) Revolving Fund was reduced from
$16, 100, 000 to $12, 724 , 311. Based on the adjusted SRF Bond amount
of $12, 724 , 311 the County is eligible to receive a State Grant for
50% or $6,362, 156 . However, your Committee was informed that the
County had earlier received from the State a loan for $3 million
which was deducted from the subject State Grant leaving a balance of
$3 , 362, 156 . Therefore, amendments to Ordinance 90-75 are needed to
delete $3 , 619, 000 from the Kealakehe Effluent Disposal System
project Federal grant; reduce the Hilo Wastewater Treatment and
Conveyance - SRF appropriation from $16, 100, 000 to $12, 724 ,311; and
add an appropriation of $3,362, 156 anticipated in State Grant
funding to the Hilo Wastewater Treatment and Conveyance Project.
Your Committee was informed the Old Waiakea Mill Sewer project was
also reevaluated and projected SRF money needed reduced by $73 ,300
from $725, 000 to $651, 700 . Based on $651, 700 the County is eligible
to receive $325, 850 or 50% of the total SRF amount . Therefore, Bill
No . 429 further amends Ordinance 90-75 by reducing the Old Waiakea
Mill Sewer - SRF appropriation from $725, 000 to $651, 700 and
establishing an account to receive an anticipated State
appropriation of $325, 850 .
The Waiakea Houselot Sewer project was similarly reevaluated and the
SRF request reduced by $900 as reflected in the suggested amendment
which reduces the SRF total from $400, 000 to $399 , 100 . The
additional amendment is needed to set up an appropriation to receive
50% State Grant in the amount of $199, 550 .
FC REPORT No . 394
ADOPTED: JUN 5 1991
FC- 394 Page 2 May 21, 1991
The proposed deletion of $2, 521, 000 from the Old Kona Airport SPS
and FM - SRF appropriation is due to the lack of available funding
from the State for this project. The current amount of general
obligation bond funding and Federal Grant funding is sufficient to
complete the project .
The projected costs for the Kealakehe Effluent Disposal System
project was reduced; however, as the Federal Grant funding was
redirected to the Hilo Wastewater Treatment and Conveyance project,
an additional $2,250, 000 is needed. Therefore, Bill 430 amends
Ordinance 90-75 by adding to the project an available SRF
appropriation for $1, 500, 000 and establishes an appropriation to
receive a State Grant which is 50% of SRF amount or $750, 000 .
Your Committee was informed the SRF funding is received as soon as
the qualified wastewater project is started. State Grants are
received only after SRF and County bond funds are expended on the
project .
Your Committee acknowledges Bill No. 430 accompanies this Bill
No. 429 and therein proposes changes to the title and body of
Ordinance No. 90-57 to reflect the proposed changes found in Bill
No . 429 .
Your Committee on Finance is in accord with the intent and purpose
of Bill 429 and recommends that it pass first reading.
HELENE H. HALE, CHAIRWOMAN /
I •1-t
ROBE T H. MAKUAKANE, VICE CHR. BRIAN J. 4; LIMA, EM:ER 'W
jr14'01-44■
TAKASHI DOMINGO, EMBER MERL K. LAI, MEMBER
(e4A.A41.1M----
HARRY RUDDLE, MEMBER SP NCER K. SCHUTTE, MEMBER
POL