HomeMy WebLinkAboutREP FC 137 03/11/1986 1984-1988 111 REPORT OF THE 111
COMMITTEE ON FINANCE
Date: March 11 , 1986 Re: Comm. 456
Place: Councilroom
Time: 9 : 00 a . m .
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill 143, reports as
follows:
The purpose of Bill 143 is to authorize the issuance of $14 million
in General obligation Bonds for the financing of various public
improvements .
The bill specifically describes the following: authorization of
bonds ; details of bonds ; redemption of bonds; registration , exchange
and transfer of bonds; execution and form of fully registered bonds;
sale of bonds ; authorization of bond anticipation notes ; security for
the bonds; tax covenant; CUSIP identification numbers; and bond
insurance .
In Committee discussion, the Finance Director stated that there are
$21 .9 million worth of projects authorized by Ordinance Nos . 85-51 ,
84-32, and 896 which could not be implemented due to the lack of
funds . Now that the market is attractive as far as the interest
rates on bonds, he encouraged the Committee to expedite the passage
of the bill .
It was learned that should the tax reform bill be passed, the County
will have to expend 5 percent of the funds within 30 days after
receipt of the bonds or lose its tax free status . The timing of the
funding will have to be worked out to allow the County to meet the
stipulation of the law. The Committee strongly urged the
Finance Director to present a proposed plan for the 5 percent
expenditure prior to the bond float . Further , the Committee was
assured by the Finance Director that any expenditures of the bond
proceeds would require Council approval before any projects can be
undertaken .
FC REPORT No. 137
ADOPTED : MAR 19 1986
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FC- 137 Page 2 March 11 , 1986
The Council Chairman recommended that the bond authorization be
increased by $500 ,000 for the Ihilani Place waterline project in
Kona. The project started off as an improvement district but because
of the size , it could not be completed. The property owners have
agreed to reimburse the County for the bond float but the additional
amount will allow the administration the flexibility to complete the
project if the final agreement is worked out .
Pursuant to Section 47-4 , HRS, and Section 3-11 , Hawaii County
Charter , all bonds issued shall be authorized by ordinance and may
relate to more than one public improvement .
Your Committee on Finance concurs with the intent of Bill 143 and
recommends that it pass first reading .
(ABSENT & EXCUSED)
FRANK DE LUZ III, CHAIRMAN
(ABSENT & EXCUSED)
ORRA' NE WJITCHAKU- NOU E, V. C. JAMES L. K. DAHLBERG, MEMBER
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TAKASHI DOMINGO, MEI :ER - SSELL S. KOKUBUN, MEMBER
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(ABSENT & EXCUSED) ''
MERLE K. LAI, MEMBER SPE CER K. SCHUTTE, MEMBER
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