HomeMy WebLinkAboutCOM 0118.008 2018-2020 P HeorinA
Testimony to Hawaii County Council - Finance Committee
CIP Foc156) V
May 20, 2019 Special Budget Hearing
REGARDING DEM CIP BUDGET WITHOUT LISTING NAALEHUJPAHALA LCC CLOSURE
PROJECTS TO BE FUNDED WITH CWSRF LOANS OF $71,850,000 and $36,500,000
Aloha Finance Committee Chair and Members,
CI I-3
At the Finance Committee Special Hearing on April 18, 2019, both DEM Director
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Kucharski and Finance Deanne Sako provided false information regarding the two Ka'u 8 —4 a
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large-capacity cesspool (LCC) closure projects.
1) According to the record, Mr.Kucharski "could not recall" if DEM had submitted forms
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requesting CWSRF loan funding.
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However, to prod Mr. Kucharski's memory, according to DOH Wastewater and the
2019-2020 IUP Priority List (Appendix B attached), DEM actually did submit change
requests and is currently requesting and is eligible to receive $71,850,000 to remove 163
households from the Naalehu LCC and $36,500,000 to close Pahala's LCC, affecting even
fewer homes.
2) At the April 18th hearing, Deanna Sako stated that the interest rate for HI DOH CWSRF
loans is 14Y0 per year. The rate is actually 1.25%, per CWSRF website.
This difference is important when considering the annual amount of tax money the
Council is committing for these extremely questionable projects [which the community
continues to want audited -per ongoing petitions]:
Loan: $108,350,000
20 yr. Princ/Yr $5,417,350 payment yratt 30 yr. Princ/Yr $3,611,700 payment/yr.
.5%/yr Interest $541,735 v. ACTUAL 1.25% Interest payment Year 1 $1,354,360
Ms. Sako understated the actual interest commitment by $812,625 for year one,
and that underestimate adds up over the 20-30 years of the loan.
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Than-c you for helping us! Sane ra Demorielle
Comm. No. ,
Ref. To: Pi
Ref. Date RAY 2 0 Zola