COM 0636.004 1996-1998 - Laserfiche WebLink

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Bill 180, Draft Two Page Two 2. What are the general parameters on the use of funds raised by a bond float? • Bond proceeds may be used to finance the costs of public improvements and other purposes as authorized by law. Section 47-3, HRS. • A statement that the bond proceeds will be devoted towards the costs of appropriations for public improvements in a capital budget ordinance that is identified in the bond authorization ordinance, is a sufficient statement of purpose. Individual public improvements do not need to be identified in the bond authorizing ordinance. Section 47-6, HRS. • Bond proceeds may only be used for the purposes for which they are issued, unless otherwise determined by the governing body. Section 47-5, HRS. 3. What are the parameters on the use of the bond proceeds from this particular proposed bond authorization? • Bill No. 180, Draft 2, (section 2) identifies three permissible uses of the bond proceeds: 1) To pay for appropriations, made in Ordinance 95-75, as amended, Ordinance 96-68, as amended, and Ordinance 97-82 as amended, for public improvement projects to be financed from general obligation bond funds; (See attachment A.) 2) To pay the costs of issuance of the bonds; and 3) To reimburse the General Fund for funds borrowed to pay costs of the appropriations mentioned above. • The bond ordinance may be amended to allow the use of funds for additional purposes. Mr. Takahashi noted in Communication No. 636.03, that proposed amendments to the bond ordinance to allow use of this bond authorization for capital projects authorized in subsequent capital budgets can be expected. • In the past the Council has also precluded funding of a specific project. As an example, bond Ordinance 95-82 contained language precluding the use of proceeds from that authorization to pay for the plans, financing, or construction of the Kealakehe Golf Course.