After hearing assurances that borrowing an additional $20 million won’t break the bank, the Hawaii County Council on Wednesday unanimously passed a resolution paving the way for emergency roadwork on alternative routes to Puna in the event lava crosses Highway
After hearing assurances that borrowing an additional $20 million won’t break the bank, the Hawaii County Council on Wednesday unanimously passed a resolution paving the way for emergency roadwork on alternative routes to Puna in the event lava crosses Highway 130.
Resolution 554 doesn’t actually borrow the money, but declares the county’s intent to authorize a bond issue to reimburse itself for expenses should it become necessary.
“It’s just an intent. We’re not authorizing a bond,” said Hilo Councilman Dennis Onishi. “It’s just in case.”
Currently, the county’s annual debt service is 12 to 13 percent of total annual expenditures, said Deputy Finance Director Deanna Sako in response to questioning by South Kona/Ka‘u Councilwoman Brenda Ford. The Government Finance Officers Association recommends a ceiling of 15 percent.
The county’s total bond debt as of June 30 was $359.8 million, according to a report from the Finance Department. But Sako said the county had budgeted about $23.5 million to bring down that debt over the fiscal year that ends June 30.
“We’re well under the 15 percent,” Ford said.
Sako said the resolution satisfies IRS requirements in case the county, under a worst-case scenario, has to issue bonds to pay itself back for money it’s already expending to build roads. She said she still holds hope the county will get road funding from the Federal Highway Administration or the Federal Emergency Management Agency.
The county is spending $3 million to open Government Beach Road, which was a one-lane dirt road, and to connect Railroad Avenue between Nanawale States near Pahoa and Hawaiian Paradise Park.
The latest project, reopening Chain of Craters Road where it was buried by past lava flows, could cost between $12 million and $15.5 million, a spokesman for Mayor Billy Kenoi said Monday.
Nearly 8 miles of Chain of Craters Road was buried by past lava flows from the ongoing Puu Oo eruption. About 5.4 miles of that is within Hawaii Volcanoes National Park.
The re-established unpaved road would be used as an alternate route for lower Puna residents should the June 27 lava flow cut off access by crossing Highway 130 and other routes farther downslope.
If the other roads are cut off, a trip to Hilo from Pahoa would be about 64 miles by the Chain of Craters route, which would take residents through Volcano. It’s currently 17 miles.
Kenoi had projected the project would take between 45 and 60 days from the start, but he said work would be expedited if needed.
The lava flow remained active Wednesday morning but appeared to be slowing, the Hawaii County Civil Defense reported.
An overflight Wednesday morning showed that the flow had progressed northeast about 75 feet, since Tuesday, Civil Defense said. The flow front was about 0.6 miles upslope of Apaa Street, near the Pahoa Transfer Station.
Email Nancy Cook Lauer at ncook-lauer@westhawaiitoday.com.
