Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-03-14
Mayor Tells Supervisors $3.50,
600 Necessary for City Hail,
100000 For Roads

Mayor Lane read TO the supervisors
last night mis- promised message on
the proposed $3.50. 900 bond issue He
asked that an issue Of $250.000 be au-
thor:zed for a new city hall, $l50,eD0
for the building and Si01,0e9 for the
lot-and 100000 for roads. He spoke
CT the possibility Of the feiesal scv-
eminent building military rn4d
around the island al cost OF $1,000.
900. but thought that only implied an
obligation on the part of the c,nGty
to. do its share In the building OF goJd
roads.
The message was received oy the
board and placed on file To be- consis,-
cred at some future meeting.
II follows In full: ga b
Net Balance Small. fE| |iilIx
Il submit herewith for yuuf aolIsld
Grafton estimates Of anicuntS REQUIRED
for public improvements slSis
in my first Bessaee tits. isestian
Of finances was d scussed at spgne
length, to which your attaatl0n il in
vited sff Fl 81 ifl
The large deficit at the end OF the
last fiscal year has lenr serious as
pect to this question. II illustrates
that the gap between needs and means
which often tends to widen Is seldom
bridged satisfactorily for any consid.
erahle period. while the task of max;
Ing ends meet is perennial
Eat first 1t has seemed as II little
that was urgent had remained undone.
and yet. at the beginning of the term
lcf the present board OF supervisors,
with net balance in the general
fund Of $i.44S.92. there has appeared
the usual formidable array Of pressing
/, new needs that never cease to accu.
mulate with wonderful rapidity in a
present-day live political Industrial
and social organism.
Should Be Surplus.
The government cannot. any more
than a private enterprise, be SUGGEST
fully financed on a small surplus with
which to meet the absolutely neces-
sary increases In expenditures. Not
only should allowances be made for
maintaining the government from one
tax-paying period to the next but. v
possible, there should be maintained
surplus as ! margin for emergency
II
tons in revenues. The status Of our
public finances at the present time Is
such as to require most careful
thought In order to avoid another Pc
Rod OF financial deficiency ct an early
date.
Seldom has the board OF superyt
sors been confronted with so many i'm
portant problems as now, but seldom
has 1t met under more suspicious con-
ditions Of proving equal to the situa-
ton.
Principal Needs.
ct will readily be seen that perma.
nent improvements within the next
few years must be provided for main
ly out of loan funds. Nothing has
been done In this direction since the
establishment Of city and county gov
eminent and there Is pressing need
that much shall be done during the
4 next few years. The permanent inn
provements required will be consider
/ ed more particularly elsewhere in this
message, under the appropriate head
ings; but, In general. 1t may be stated
here that the principal needs are for
a city hall and roads.
Bonding Limitation.
The limit prescribed by Law to
which bonds may be issued is two and
one-half per centum of the assessed
value Of property in the city and coun-
lty, or say, $2,250.O00, in the aggre-
gate, on an assessed valuation OF $780,.
100000. and one-haf Of one per
centum of such assessed value or.
say, $45G,000, in any one year;
but 1t viii probably be advisable In
any event to issue bonds, not all at
once, but in instruments. SO as to avoid
keeping an unnecessarily large sum
Id idleness and 80 as not to affect Ia
Dor condition too seriously. The total
amount of bond Issue to be authorized
Is $750,000, or, say, 500, 900 to be Is.
sued during the first year, and $780,
900 during the second year.
The term Of which bonds may be
issued Is Is years, redeemable at any
time after FIVE years; and the rate OF
interest is not more than i've per cent
UNI pei annum; payable ser1i-annually
This should facilitate the sale Of
bonds 1T par. but, even II the condE
ton of the bond market is such sthat
the bonds may be sold at q discount
sHch sale cannot be made at less than
two per centiIm below the nominal
par value of such bonds. II, the rate
of interest is hyej per centum, there
win have to be set aside annually FOR
sinking fund. in addition TO interest. Il
the term Of the bonds is Is years. an
j amount equal IN the aggregate to the
+ par value of such bonds at maturity.
Spend Without WAISTS.
/ Tin ulder to justify the issue Of
/ bonds adequate provisions should be
made for the expenditure Of the pro
ceeds TO the best advantage and with
out waste, and for the upkeep Of the
proposed public improvements, so thai
they viii not require to be replaced
before tie bonds are paid, for Il would
be foolish In the extreme and unjust