HomeMy WebLinkAboutREP FC 099 2005-05-03 (2004-2006OFFICE INFORMATION ONLY
Meeting: Council - June 1, 2005
Action: Postponed (Draft 3) at first reading; never take up again.
Also postponed at first reading on May 18, 2005
Re: Rill 79; Comm. 209 (2004-2006 term); FC -99 (Draft 2 forward with a
negative recommendation due to 4 ayes, 4 noes and I absent; FC 99 not
adopted, no vote taken at Council level).
REPORT OF THE
COMMITTEE ON FINANCE
DATE: May 3, 2005 Re: Comm. No. 209/Rill No. 79
PLACE: Council Chambers
TIME: 9:04 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 79, reports as follows:
Bill No. 79, transmitted by Council Member Bob Jacobson, via Communication No. 209, dated
March l8, 2005, authorizes the issuance of $10,000,000 general obligation bonds of the County
of l lawai`i for the purpose of acquiring land for public access, open space and natural resource
preservation; fixing the form, denominations, and certain other details of such bonds and
providing for their sale to the public; and authorizing the issuance and sale of a like principal
amount of general obligation bond anticipation notes in anticipation of the issuance and sale of
such bonds.
The approval of Bill No. 79 will allow the County to acquire lands or property with priority
given to coastal lands. The longstanding needs are for: the preservation of coastal areas, open
space, cultural and historic sites, recreation areas, natural resources, and the provision of public
access to the ocean, mountains, recreation, hunting and gathering areas.
Pursuant to Chapter 3, Section 5-33(c), Hawaii County Charter, the Director of Finance shall
negotiate loans and the issuance and sale of bonds and notes when authorized by the Council.
Communication No. 209.2 from Mayor Harry Kim, dated April 17, 2005, provided comments 011
Bill No. 79, which states that based on the advice from the County's Bond Counsel, Brian Ilirai,
he is unable to support this bill. Mr. Hirai advised that selling bonds and placing the proceeds in
a special fund for the purpose of acquiring property at some future date could be considered a
'premature issuance' and would certainly raise arbitrage and tax exemption questions.
Originally heard on April 19, 2005, this measure was postponed to allow Council Members time
to review this measure more thoroughly.
Bill 79, Draft 2 was referred to Your Committee, dated April 20, 2005, from Council Member
Bob Jacobson, which makes a number of technical and non -substantive changes recommended
by the Bond Counsel.
Your Committee heard testimony in favor to the measure from Susan O'Neil.
William Takaba, Director of Finance, explained that the amendments in Draft 2 identify the
purpose and form of the ordinance. Ile also explained that the purpose limits the scope of the
bond issuance.
FC REPORT NO. 99
A motion to approve was made and seconded, followed by a vote by the eight Members in
attendance. The final vote, as reflected below, prompted the Committee Chair to forward this
measure to the full Council with a negative recommendation.
Your Committee on Finance forwards Bill No. 79, as amended to Draft 2, to the Council with a
negative recommendation.
smc
11 Is
NOES
ASF:
F%
ARAKAKI
X
HIGH
X
HOFFNIANN
X
HOLSCHFH
X
IKEDA
X
ISBELL X
JACOBSON X
PILAGO X
SAFARIK X
Respectfully submitted,
COMMITTEE. ON FINANCE
I
VIRU IA ISBELL. CHAIR
FC REPORT NO. 99
ADOPTED: _ _