BOARD OF WATER SUPPLY
COUNTY OF MAUI WAILUKU, MAUI, HAWAII

RESOLUTION NO. 03 (1992)

RESOLUTION WITH RESPECT TO RATES AND CHARGES
REQUIRED BY BOND RESOLUTION



WHEREAS, Section 8.02(A) of the Bond Resolution adopted on December 17, 1991, as amended
and supplemented: (i) requires that the Board of Water Supply of the County of Maui, 
Hawaii, shall at all times fix, charge and collect such rates and other charges as shall 
be required in order that in each Fiscal Year the Net Revenues shall not be less than the 
Net Revenue Requirement for such Fiscal Year; and (ii) provides that the failure in any Fiscal 
Year to comply with the foregoing rate covenant shall not constitute an Event of Default if 
the Board shall comply with Section 8.02(B) of the Bond Resolution; and

WHEREAS, Section 8.02(B) of the Bond Resolution requires that on or before June 1 in each 
Fiscal Year, the Board: (i) shall complete a review of its financial condition for the purpose 
of estimating whether the New Revenues for such Fiscal Year and for the next succeeding Fiscal 
Year will be sufficient to comply with the rate covenant in Section 8.02(A) of the Bond Resolution; 
and (ii) shall by resolution make a determination with respect thereto; and

WHEREAS, the Director of Water Supply and his staff have completed a review of the financial 
condition of the Department of Water Supply projected for the Fiscal Years ending June 30, 
1992, and June 30, 1993, based on actual figures as of March 1, 1992, and have prepared a report 
with respect thereto: now, therefore,

BE IT RESOLVED BY THE BOARD OF WATER SUPPLY, as follows:

1.    The financial review of the Department of Water Supply as prepared by the Director 
of Water Supply and his staff and as summarized in a report submitted at the meeting of 
the Board at which this Resolution is adopted, is hereby found and determined to be reasonable, 
and is hereby accepted.

2.    Based on said report, the Net revenues for the Fiscal Year ending June 30, 1992, are 
projected to be $ 9,430,496.00 and the Net Revenue Requirement for such Fiscal Year is projected 
to be $ 9,637,023.00.

3.    Based on said report, the Net Revenues for the Fiscal Year ending June 30, 1993, are projected 
to be $ 7,799,844.00 and the Net Revenue Requirement for such Fiscal Year is projected to be $ 6,900,306.00.

4.    It is hereby found and determined that, although there are insufficient Revenues to meet 
the rate covenant set forth in Section 8.02(A) of the Bond Resolution for the Fiscal Year ending 
June 30, 1992, the Revenues will be sufficient to meet said rate covenant for the Fiscal Year 
ending June 30, 1993.

5.    The Director of Water Supply is hereby authorized and directed to file with the Trustee on 
or before July 1, 1992, a copy of this Resolution certified by the Director of Water Supply to be 
accurate and complete, together with a Written Certificate of the Director of Water Supply required 
by Section 8.02(B) of the Bond Resolution, which Written Certificate shall have attached thereto a 
copy of the report referred to in Section I hereof.

6.    All capitalized terms set forth herein shall have the respective meanings ascribed to them as 
defined in the Bond Resolution.

ADOPTED this 19th day of May, 1992.
	

BOARD OF WATER SUPPLY 
COUNTY OF MAUI

Larry Jefts
Its Chairman

APPROVED TO FORM AND LEGALITY
Guy Haywood
Corporation Counsel