$99.5 million bond issue to complete Kenoi priority projects

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The Hawaii County Council, with very little comment, made quick work Tuesday unanimously passing a $99.75 million bond issue requested by Mayor Billy Kenoi.

The Hawaii County Council, with very little comment, made quick work Tuesday unanimously passing a $99.75 million bond issue requested by Mayor Billy Kenoi.

The bond issue, Kenoi’s largest request yet, will go for a multitude of county projects in all nine council districts. Kenoi, who is term-limited after December 2016, said this will be the last borrowing request of his administration.

Kohala Councilwoman Margaret Wille questioned how the projects on the list were selected, saying there should have been more consultation with the Community Development Plan committees. She noted there were South Kohala projects on the list but none for North Kohala.

Finance Director Deanna Sako said each county department selected projects that were “ready to go.” She said some other projects had already been covered under prior bond issues, adding that the CDP committees do contact her office requesting projects.

Hilo Councilman Aaron Chung was concerned that affordable housing projects accounted for just $2.5 million of the almost $100 million being borrowed. He’d prepared an amendment adding another $2 million for homeless programs, but decided not to introduce it after talking with Kenoi.

“They’ve assured me they have enough resources to do this if and when it does develop,” Chung said.

Of the bond issue, slightly more than half, $50 million, will go for 18 projects for the Department of Parks and Recreation, with new facilities ranging from the Waimea District Park, to a community park in Hawaiian Paradise Park to improvements to tennis courts, Hilo Municipal Golf Course clubhouse and Hilo Drag Strip.

Another $20 million would be spent on 12 Public Works improvement projects, including Mamalahoa Highway, Ane Keohokalole Highway, Kilauea-Keawe Street resurfacing, Komohana Street, Waikoloa shoulder widening and more.

The $10 million for six Department of Environmental Management projects would focus on the Hilo sewer outfall repair, Kealakehe effluent reuse, various other wastewater projects and recycling project improvements.

Fire Department funding of $9 million would include the Haihai station and the Waimea volunteer fire station. Mass Transit funding of $5,000 would build bus shelters and create a master plan for islandwide bus routes.

Radio tower repairs for the Civil Defense Agency, $1 million to design an office for the county prosecutor at the West Hawaii Civic Center and micro housing and other affordable housing initiatives round out the list.

The county will pay another $750,000 on top of the bond issue for the cost of issuing the bonds.

The county’s annual debt service — how much interest and principal it pays annually on its borrowing — is currently 7.8 percent of expenditures. That figure would go up to 13.2 percent if all the borrowing currently authorized by the council were issued. It would reach 13.8 percent once the proposed bonds are authorized and issued.

The Government Finance Officers Association recommends a ceiling of 15 percent.

Total bonded indebtedness for the county now stands at $357.6 million not counting the new bond issue. The full faith and credit of the taxpayer is pledged under general obligation, or G.O., bonds, compared to other types of bonds that rely on revenues from services or special districts, for example.

Project listing:

Parks &Recreation $50 million

Waimea Park

Hilo Municipal Golf Course Clubhouse Improvements

Honaunau Rodeo Arena Improvements

Mauna Kea Recreational Area

Kukuihaele Park Improvements

KALO Gymnasium Interior

Hualani Park Ballfields Improvements

Alii Kai Subdivision New Park Development

Kailua Park Soccer Fields Improvement

Hilo Drag Strip Improvements

Hokulani Street Park

Shipman Park Lighting and Improvements

Kealakehe Regional Park Critical Habitat

Kaipalaoa Landing Park Development

Hawaiian Paradise Park, Community Park

Islandwide Tennis Court Improvements

ADA Transition Plan

Repairs/Improvements to Facilities

Public Works $20 million

Mamalahoa Highway (Route 19) Improvements

Kilauea-Keawe Street Resurfacing

Manono Street Improvements

Kapiolani Street Improvements

Kawailani Street Improvements

Komohana Street

Kaiminani Drive Phase II

Manowai opae Road

Waikoloa Shoulder Widening

Ane Keohokalole Highway (Hina Lani to Kaiminani)

Honokaa Safe Drop Off (matching funds)

Drywells

Environmental Management $10 million

Hilo Outfall Repair

Repair/Replacement of Wastewater facilities

Kealekehe Effluent Reuse-Makai (Rl Water)

Repair Wastewater Digesters

Repair Pua Wet Well

Solid Waste projects (repairs and recycling improvements)

Fire $9 million

Haihai (Kawailani) Station

Administration Complex (Includes Server Room move from Civil Defense)

Waimea Volunteer Station

Mass Transit $5 million

Baseyard facility (matching funds)

Bus Shelters

Master Plan for island wide facilities

Housing $2.5 million

Transitional Housing Micro Units

Ouli Ekahi repairs

Park at Ulu Wini

Kamakoa Nui Phase II (additional revolving funds)

Civil Defense $1.5 million

Radio Tower repairs

Prosecutors Office $1 million

Design of West Hawaii office

Costs of Issuance $750,000

Total $99,750,000