Honolulu suspends debt guidelines
HONOLULU - Honolulu's city managing director quietly approved suspending debt guidelines to allow for borrowing to finance the city's $5.27 billion rail project.
The Honolulu Star-Advertiser uncovered last year's suspension through documents obtained under the Freedom of Information Act.
The decision by City Managing Director Douglas Chin was never publicly announced and City Council Budget Committee Chairwoman Ann Kobayashi says she was never notified.
Chin says there was no legal requirement that the Mayor's Office notify the council about suspending the debt guidelines, which are designed to limit the amount of money the city spends each year to repay general obligation bond debt.
The city will borrow hundreds of millions of dollars beginning next year to maintain cash flow needed to pay contractors while the 20-mile rail line is under construction.