HomeMy WebLinkAboutREP FC 401 09/21/1987 1984-1988 - • REPORT OF THE •
COMMITTEE ON FINANCE
Date: September 21 , 1987
Place: Councilroom
Time: 10 :00 a .m . •
Chairman and Members
Hawaii County Council
Hilo , Hawaii 96720
Your Committee on Finance , to which was referred Resolution
zNo . 348-87 , reports as follows:
The purpose of Resolution No . 348-87 is to request that the
Technical Corrections Act of 1987 include an amendment which will
prohibit funds from being used for TRANS cash flow calculations if
they have "legislative , judicial or contractual requirements that
such amounts can be reimbursed" .
The need for the above amendment is based on the following reasons:
1 . Footnote 173 of the section on Tax Exempt Bonds has raised
concerns among issuers , bond counsel and the municipal
securities industry;
2 . Footnote 173 would include restricted funds in determining
projected cash flow deficits for the purpose of calculating
borrowings by state and local governments;
3. Footnote 173 would force issuers to issue lesser
borrowings , lower than necessary to meet cash flow
requirements , in order to avoid exposure to arbitrage
rebate provisions of the Tax Reform Act of 1986 ;
4. State Treasurers are seeking an amendment to the Technical
Corrections Act of 1987 to include current treasury
regulations which prohibit funds from being used for Tax
and Revenue Anticipation Notes (TRANS ) cash flow
calculations if they have "legislative , judicial or
contractual requirements that such amounts be reimbursed".
Your Committee on Finance concurs with the intent of Resolution
No . 348-87 and its adopt ' .
FRANK DE LUZ III, CHAIRMAN ,t(04„.tr/ ,‘,,k‘
.400,ORRA NE TCHAKU- OUYE, V.C. • ►'' ` L. K. DAHLBERG MEMBER
TAKASH .SOMI Ge " ' • `` S ELL S. KOKUB N, MEMBER
MER: E K. LAI, MEMB `''. S' ENCER K. SCHUTTE, MEMBER
A/KK FC REPORT NO . 401
ADOPTED : 0CT 1987