County can use general obligation bonds instead of district bonds

The council, in lieu of the issuance of community facilities district bonds as provided in this article, may in its sole discretion issue general obligation bonds of the County, or authorize payment of the required amount from the capital projects fund of the County, or both, in order to pay or reimburse the costs of facilities to be financed and any incidental expenses related thereto. All such general obligation bonds shall be authorized, issued and sold in accordance with chapter 47, Hawai‘i Revised Statutes, as amended, and any facility authorized to be financed under this chapter shall be an “undertaking” within the meaning of chapter 47. Without limiting the generality of the provisions of the foregoing sentence, the form, name, date, denomination, numbers, maximum interest rate, method of execution and all other terms and details of such general obligation bonds shall be fixed and determined in accordance with and as provided by chapter 47. No right of prior redemption need be reserved in the issuance of such bonds, nor shall either the amounts or dates of the maturities of or of the interest on any such bonds be required to conform in any way to the amounts and due dates of any special taxes levied or to be levied under this chapter. The validity of such general obligation bonds shall not be affected in any way by any proceedings taken, contracts made or acts performed in connection with any facility or any special tax for such facility. If general obligation bonds are issued as provided in this section, except as otherwise provided herein, the council may subsequently direct all moneys collected on account of special taxes for the costs of any facility to finance which such bonds have been issued or for incidental expenses, after the issuance of such bonds, to be applied to the reimbursement of the general fund of the County for interest on and principal of such general obligation bonds. Any amounts collected on account of such special taxes as aforesaid which are not so directed by the council to be applied to such reimbursement shall be appropriated to and become a part of the capital projects fund or general fund of the County as the council may from time to time direct. In connection with any facilities financed with the proceeds of general obligation bonds, proceedings for establishment of a community facilities district or districts or improvement area or areas therein and levy of special taxes with respect thereto may be undertaken at any time prior to or while such general obligation bonds are outstanding to reimburse the County for the cost of such facilities or debt service on such bonds (and such related financing and administrative costs and incidental expenses as the council may determine). Community facilities district bonds may be issued, in accordance with sections 32- 57 through 32-70, to refund all or part of such general obligation bonds. The refunding of any such general obligation bonds (whether with community facilities district bonds or other general obligation bonds) shall not affect the amount or time of payment of any special taxes, except as the council may determine in accordance with section 32-70. (1994, ord 94-77, sec 3.)32-71