COUNTY OF MAUI BOARD OF WATER SUPPLY
RESOLUTION NO. 15 (1998)

AUTHORIZATION FOR INTERFUND BORROWING



	WHEREAS, Board unencumbered restricted funds in the Central Maui Source and Water
System Development funds total approximately $3.1 million as of June 30, 1998; and 

	WHEREAS, the total unencumbered balances of these restricted funds will not be 
needed for projects before September, 1998; and

	WHEREAS, the Board approved Resolution No. 06 (1997) Relating to Interfund 
Borrowing (see Exhibit A); and
	
	WHEREAS, the funds in the Board's Capital Reserve Fund, used for system 
repair and replacement projects, are all encumbered as of June 30, 1998; and

	WHEREAS, the Board is in need of short term financing until the receipt 
of the proceeds of the bond issue, which was approved by the Maui County Council 
on July 17, 1998; and

	WHEREAS, the proceeds of this bond issue are expected to be received in 
the County Treasury on August 12, 1998; and

	WHEREAS, it is in the public's benefit to proceed expeditiously with repair 
and replacement projects;

	BE IT RESOLVED by the Board of Water Supply of the County of Maui as follows:

1.  That the Director is authorized to borrow from the Central Maui Source Development 
Fund and the Water System Development Fund monies to be used to fund replacement and 
improvement projects for fiscal year 1999; and

2.  That the amount of these borrowed funds shall not exceed the unencumbered funds 
or $3.1 million, whichever is less; and

3.  That the borrowed funds shall be reimbursed or repaid no later than September 30, 
1998 from the proceeds of the sale of general obligation bonds and/or revenues from 
water sales; and

4.  That the Board be given a monthly status report as to the amount of transfer, 
the projects to be funded by the transfer, the source of the funding, and the proposed 
time schedule for reimbursement or repayment of the loan.

ADOPTED the 21st day of July, 1998.

Robert K. Takitani, Chairperson
Maui County Board of Water Supply

Approved as to form and legality:

Gary W. Zakian, Deputy Corporation Counsel



EXHIBIT "A"
COUNTY OF MAUl, BOARD OF WATER SUPPLY
RESOLUTION NO. 06 (1997)

RELATING TO INTERFUND BORROWING


	WHEREAS, the Board approved a Bond Resolution on December 17, 1991 
(the "Bond Resolution") authorizing and providing for the issuance of revenue bonds for the 
purposes of the Water System; and

	WHEREAS, Board funds are established for restricted purposes, and

	WHEREAS, fund balances from time to time exceed encumbrances, now, therefore, 
be it resolved by the Board of Water Supply of the County of Maul as follows:

1 ) That in the event there are monies in the Restricted Fund that, in the judgement of 
the Director, are in execess of the amounts necessary for the immediate requirements of 
the respective fund and where such action will not impede the necessary or desirable 
operations of the Board, the Board may approve by resolution interfund borrowing without 
interest, and    

2) That funds borrowed by the Board from its restricted funds are to be held to the same 
standard as funds borrowed through the issuance of bonds as set forth in the General Provisions 
for the Issuance of Bonds, Section 3.03 of Article III of the Bond Resolution in December 17, 
1991, and

3) That requirements of Section 3.03 that can not be given effect are to be so noted in all 
Interfund Borrowing Resolutions; and

4) That such resolution shall state a) the amount of the loan requirement, b) the reason or 
justification for the loan, c) the source of funding to reimburse or repay the transfer or 
loan, and d) the time schedule proposed for reimbursement or repayment of the loan, which 
shall not exceed one year from the date of borrowing, and

5) That a copy of this resolution be attached to any Interfund Borrowing Resolution.

IN WITNESS WHEREOF, and by proper vote of the Board of Water Supply, I have hereunto subscribed 
my name and affixed the seal of the Board of Water Supply this 21st day of October, 1997.

Dorvin Leis, Chairperson
Maui County Board of Water Supply

APPROVED AS TO FORM AND LEGALITY:

Gary Zakian
Deputy Corporation Counsel
County of Maui