COUNTY OF MAUI, BOARD OF WATER SUPPLY
RESOLUTION NO. 12 (1998)

REQUESTING THE ISSUANCE AND SALE OF GENERAL OBLIGATION
REFUNDING BONDS OF THE COUNTY OF MAUI, HAWAII
IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
MILLION EIGHT HUNDRED FIFTY THOUSAND DOLLARS ($1,850,000)
FOR THE PURPOSE OF REFUNDING ALL OR A PART OF CERTAIN
OUTSTANDING WATER SYSTEM GENERAL OBLIGATION BONDS ISSUED
TO FINANCE THE WATER WORKS OF THE COUNTY



	WHEREAS, the Department of Water Supply ("Department") of the County 
of Maui, Hawaii ("County") consisting of a Board of Water Supply ("Board"), 
the Director, a Deputy Director, and the necessary staff has, pursuant to the 
Charter of the County, the full and complete authority to manage, control and 
operate water systems owned and operated by the County, including all the County 
water rights and water sources, together with all materials, supplies and 
equipment and all real and personal property used in connection with such water 
systems, and has, pursuant to such authority, managed, controlled, and operated 
such water systems; and

	WHEREAS, under the Constitution of the State of Hawaii, Hawaii Revised 
Statutes, and the Charter of the County, the Board may by resolution request and 
consent to the issuance of general obligation refunding bonds of the County to 
refund outstanding bonds of the Board, and to pledge the revenues of the Department 
to the payment and security of such refunding bonds; and

	WHEREAS, the Board has determined that it is financially advantageous and 
in the best interest of the Department to request that the County issue a series 
of General Obligation Refunding Bonds for the purpose of refunding certain maturities 
of the County's outstanding General Obligation Water Bonds, 1971, and to advance refund 
certain maturities of the County's outstanding general obligation Bonds, 1992, Series 
A in the aggregate outstanding principal amount of $1,850,000; and

	WHEREAS, the Board finds and determines it to be beneficial to the management 
and operation of the water systems of the County to request and consent to the issuance 
of such refunding bonds; now, therefore,

	BE IT RESOLVED by the Board:

1. That pursuant to Part I, Chapter 47, Hawaii Revised Statutes as amended, the 
County Council ("Council") is hereby requested to authorize the issuance of general 
obligation bonds of the County in an aggregate principal amount not to exceed ONE 
MILLION EIGHT HUNDRED FIFTY THOUSAND DOLLARS ($1,850,000), the proceeds derived from 
the sale thereof to be used for refunding all or a portion of the General Obligation 
Water Bonds, 1971, and General Obligation Bonds 1992, Series A that were issued for 
the purpose of providing financing for the waterworks of the County, and which require 
reimbursement of the General Fund from the revenues of the Department. The Director 
of Finance of the County in accordance with and subject to the Constitution and laws 
of the State of Hawaii and the Charter and ordinances of the County including the 
ordinance authorizing the Refunding Bonds, shall fix and determine the form, date, 
denomination, and maturities of the Refunding Bonds, which shall mature in substantially 
equal installments of principal and interest which he deems to be in the best interest 
of the Department. The Refunding bonds shall be substantially in the form of the 
general obligation bonds of the County heretofore issued with such omissions from 
such form, such insertions therein, and such variations thereof, as shall be deemed 
necessary and desirable to reflect the provisions of the Constitution and laws of 
the State of Hawaii and the Charter and ordinances of the County, including the 
ordinance authorizing the Refunding Bonds. The Refunding Bonds shall have such further 
details as shall be determined by the Director of Finance consistent with the Constitution 
and laws of the State of Hawaii and the Charter and ordinances of the County including 
the ordinance authorizing the Refunding Bonds, all as the Director of Finance deems to 
be in the best interest of the Department; and

2. That the Council is hereby requested to authorize the Director of Finance to 
issue and sell the Refunding Bonds at such time as the Director of Finance shall 
determine in the best interest of the Department; and

3. That the Refunding Bonds shall be deemed issued for a public undertaking from 
which revenues are derived, to wit: for the waterworks of the County. The Board hereby 
covenants that the General Fund of the County of Maui shall be reimbursed for the payment 
of the principal of and interest on said Refunding Bonds. The Board further pledges as 
security for repayment of the bonds Department of Water Supply revenues from the undertakings 
which the Refunding Bonds will finance. Such reimbursement will be made in a manner 
consistent with the provisions of the Constitution and laws of the State of Hawaii and 
the County Charter.

4. This Resolution shall take effect upon the adoption thereof, and a certified copy 
shall be delivered to the Mayor and to the Council.

Approved as to form and legality:

Gary Zakian
Deputy Corporation Counsel
County of Maui