(a) Improvement district bonds.
(1) In the event of an election to pay all or any part of any assessment imposed pursuant to Articles 8 through 14 of this chapter in installments, subject to subsection (b), the unpaid amount of such assessment, including without limitation the cost of land acquisition and the costs specified in §§ 14-9.1(a) and 14-10.2(a) and the cost of funding a debt service reserve fund for the payment of the principal of and interest on improvement district bonds, shall be obtained by the issuance of sufficient improvement district bonds of the city. However, if the aggregate of the assessment installments for all property owners in the improvement district is less than $1,000 in each year, then improvement district bonds need not be issued.
(2) The improvement district bonds shall be authorized by resolution of the council. The improvement district bonds shall:
(A) Either be in coupon or registered form;
(B) Bear the name of the benefited improvement district;
(C) Be dated;
(D) Be numbered;
(E) Be in the appropriate denomination;
(F) Bear interest at such rate or rates per year, but not more than 15 percent per year, payable at such time or times and at such place or places;
(G) Mature at such time or times so as to cover the outstanding installment payments determined upon, pursuant to Articles 8 through 14 of this chapter; and
(H) Be subject to call at such price or prices and upon such terms and conditions, and may be subject to tender by the holders thereof upon such terms and conditions;
all as determined by resolution by the council.
The improvement district bonds shall bear the facsimile signature of the director of budget and fiscal services of the city and the seal of the city or a facsimile thereof, shall be attested by the facsimile signature of the mayor of the city, and shall bear a certificate of the authentication manually executed by the registrar for the improvement district bonds. No improvement district bond shall be valid or obligatory unless authenticated by the registrar. Interest coupons, if any, shall bear a facsimile signature of the director of budget and fiscal services of the city.
The director of budget and fiscal services of the city shall designate the registrar, if any, for the improvement district bonds and the place of registration and transfer of such improvement district bonds. The registrar shall maintain such books of registry as shall be required by the resolution of the council. The director of budget and fiscal services may serve as registrar.
(3) The improvement district bonds shall be payable only out of the moneys collected on account of assessments made for the improvements for which they are issued and the city shall not otherwise guarantee payment of such bonds. Interest payments may be advanced by the director of budget and fiscal services out of moneys available in the improvement district revolving fund.
(b) General obligation bonds—capital projects fund.
(1) The council, in lieu of the issuance of improvement district bonds as permitted by subsection (a), may in its sole discretion, issue general obligation bonds of the city, or authorize payment of the required amount from the capital projects fund of the city, or both, to pay the unpaid amount of any assessment required to pay the contract price of the related improvement and any other cost involved in the improvement, including without limitation the cost of land acquisition and the costs specified in §§ 14-9.1(a) and 14-10.2(a) and the cost of funding a debt service reserve fund for the payment of the principal of and interest on general obligation bonds. The council shall have power to issue general obligation bonds of the city for the purpose of establishing, maintaining or replenishing the capital projects fund. All such general obligation bonds shall be authorized, issued, and sold in accordance with HRS Chapter 47, as amended.
(2) Without limiting the generality of the foregoing sentence, the form, name, date, denomination, numbers, maximum interest rate, method of execution and all other details of such general obligation bonds shall be fixed and determined in accordance with and as provided by such chapter. 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 any such bonds be required to conform in any way to the amounts and due dates of any assessments. 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 improvement or any assessments for such improvements.
(3) If general obligation bonds are issued as provided in this subsection, except as otherwise provided herein, the council may subsequently direct all moneys collected on account of assessments and interest to be applied to the reimbursement of the general fund of the city for interest on and principal of such general obligation bonds. Any amounts collected that are not so directed by the council to be applied to such reimbursement, are in excess of the amounts required for such reimbursement, or are collected on account of assessments and interest for any improvement financed from the capital projects fund, shall be appropriated to and become a part of the capital projects fund.
Sections 14-12.2(a) and §§ 14-12.3, 14-12.4, and 14-12.5 shall not apply to such general obligation bonds and shall be restricted in their application to improvement district bonds. Article 13 shall not apply to such general obligation bonds, unless the council, in its sole discretion, shall consent to the application of Article 13 to such bonds. The refunding of any such general obligation bonds shall not in any way affect the payment of assessment installments and the interest thereon or the amounts and times of such payments, unless such refunding is part of a plan consented to by the council and adopted under Article 17 of this chapter.
(c) Advances from available funds. In the event of an election to pay all or any part of any such assessment in installments, the amount required for immediate use during the period before the issuance of improvement district or general obligation bonds or the provision of funds from the capital projects fund, to pay the contract price of the improvements or the installments of the assessment therefor, from time to time as they fall due, may be advanced out of any available funds. In connection with any improvements financed with the proceeds of general obligation bonds of the city, proceedings for establishment of an improvement district or districts or zones therein and imposition of assessments may be undertaken at any time before or while such general obligation bonds are outstanding to reimburse the city for the cost of such improvements (and such related financing and administrative costs as the council shall determine).
In the event of an election to pay all or any part of such assessments in installments, improvement district bonds or general obligation bonds may be issued in accordance with Articles 8 through 14 of this chapter for the purpose of making such reimbursement, including the payment of any reasonable administrative fee or expense of the city associated with the improvements, proceedings taken under Articles 8 through 14 of this chapter or the issuance or carrying of bonds, and any reasonable fee that the city may impose for financing or refinancing the improvements from the proceeds of general obligation bonds.
(d) Term of bonds. Except as shall be limited by the State constitution, the council may fix, or authorize the director of budget and fiscal services to fix, the maturity or maturities of improvement district bonds and general obligation bonds issued to budget and fiscal services improvements under Articles 8 through 14 of this chapter.
(Sec. 24-5.1, R.O. 1978 (1987 Supp. to 1983 Ed.)) (1990 Code, Ch. 14, Art. 27, § 14-27.1) (Am. Ords. 89-2, 90-91)