Sewer loan reserve fund rules and reporting

(a) For the purpose of payment of guaranteed loans in default, there shall be created a reserve fund, to be known as the sewer connection reserve fund, which shall at all times be not less than fifteen percent of the total amount of loans guaranteed and shall be funded by the general fund or other available sources. If a guaranteed borrower defaults on a loan, the bank shall be paid from this reserve fund without further council action. If this repayment of the loan causes the reserve fund to fall below fifteen percent of the total amount of loans guaranteed, the director of finance will then submit to the council a bill for an ordinance to transfer the money from the general fund or other available sources if such a transfer is necessary to maintain the required level of the fund. All interest generated by the fund shall be deposited into the County of Hawai‘i general fund. (b) In the event grant monies are available to finance sewer connection costs, the sewer connection reserve fund may be used to finance connection costs for those lot owners eligible for grant funding and only to the extent that the sewer connection reserve fund can be reimbursed from the grant. (c) At least once every three months the director of finance shall prepare and submit to the council a report on the status of the loan program, including but not limited to the following: (1) The number of guaranteed loans outstanding; (2) The total dollar value of all guaranteed loans outstanding; (3) The balance in the reserve fund; and (4) The number of hookups to be required in the next increment. (1992, ord 92-136, sec 1; am 2012, ord 12-158, sec 3.)21-45