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c°•' ~ <br /> <br /> DONALD IKEDA .~1~~~'• ALAN S. KONISHI <br /> County Cferk ~ OrpuN County Clerk <br /> 11 .e.~! <br /> CONSTANCE R. KIRIU <br /> OFFICE OF `rHE COU)~(`I"Y CLERK LrQUlative dudiPor <br /> County of Haunii <br /> Huunn County BuiUing <br /> 2S Aupum $trtt[ <br /> Hib. Hawaii 96720 <br /> r, <br /> February 5, 1998 <br /> TO: Council Members <br /> FROM: Leslie Chow, FiscaUProgram Review Auditor~t <br /> RE: Bill No. 180, Draft 2 <br /> A Bill for an Ordinance Authorizing the Issuance of <br /> $40 Million Dollars in General Obligation Bonds <br /> During its January 6, 1998 meeting, the County Council's Finance Committee requested the <br /> Legislative Auditor's Office to compile and provide it with basic background information on <br /> general obligation (G.O.) bonds and, in particular, the collateral issues associated with the $40 <br /> million G.O. bond proposed by the Administration. The following information is submitted to the <br /> Council in response to this request. <br /> A. General Background <br /> I. What is a General Obligation Bond? <br /> • "The term `general obligation bonds' means all bonds for the payment of the <br /> principal and interest of which the full faith and credit of the State or a political <br /> subdivision are pledged...." Section 12, article VII, Hawaii State Constitution <br /> • "For the payment of the principal and interest, the governing body shall levy ad <br /> valorem taxes without limitation as to rate or amount on all the real property <br /> subject to taxation by the county." Section 47-I2, HRS <br /> • "The interest and principal payments of bonds issued under this chapter shall be a <br /> first charge on the general fund of the county issuing same, and sufficient revenues <br /> shall be raised or provided from time to time by the county for the purpose of that <br /> payment." Section 47-13, HRS <br /> ~~.11a ~ 3 6.0 `f <br /> mta na.~ND KQ. <br /> ~ Fc <br /> Ra~tf, IA~te, FEB..., 5 1998 <br /> <br />