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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext16 \styrsid145122 header;}{\s17\ql \li0\ri0\nowidctlpar\tqc\tx4320\tqr\tx8640\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext17 \styrsid145122 footer;}}{\*\revtbl {Unknown;}}{\*\rsidtbl \rsid145122\rsid4152570\rsid9508377\rsid9977416\rsid15601110}{\*\generator Microsoft Word 10.0.6764;}{\info {\title IN THE SUPREME COURT OF GUAM}{\author lroberto}{\operator blake_r}{\creatim\yr2005\mo8\dy12\hr9\min4}{\revtim\yr2006\mo3\dy10\hr11\min16}{\version4}{\edmins4}{\nofpages22}{\nofwords9620}{\nofchars54836}{\*\company Superior Court of Guam} {\nofcharsws64328}{\vern16391}}\margl1440\margr1440 \widowctrl\ftnbj\aenddoc\notabind\wraptrsp\transmf\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\truncatefontheight\subfontbysize\sprsbsp\wpjst\lytprtmet\hyphcaps0\horzdoc\dghspace120 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\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid15601110\charrsid9977416 IN THE SUPREME COURT OF GUAM}{\insrsid9977416 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 IN RE: REQUEST OF GOVERNOR FELIX P. CAMACHO \par RELATIVE TO THE INTERPRETATION AND APPLICATION \par OF SECTION 11 OF THE ORGANIC ACT OF GUAM}{\insrsid9977416 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 Governor Felix P. Camacho,}{\insrsid15601110\charrsid9977416 \par Petitioner \par ____________________ \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 Douglas B. Moylan, Office of the Attorney General,}{\insrsid15601110\charrsid9977416 \par Party in Interest}{\insrsid9977416 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 Supreme Court Case No. CRQ03-001}{\insrsid9977416 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 OPINION}{\insrsid9977416 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 Cite as:}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 2003 Guam 16}{\insrsid9977416 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 Filed:}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 July 23, 2003}{\insrsid9977416 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 Request for Declaratory Judgment pursuant to \par section 4104 of Title 7 of the Guam Code Annotated \par Argued and submitted on July 9, 2003 \par Hag\'e5t\'f1a, Guam \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 \par }\trowd \irow0\irowband0\lastrow \ts11\trqc\trgaph120\trleft-120\trftsWidth1\trpaddl120\trpaddr120\trpaddfl3\trpaddfr3\tblrsid9977416 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4680\clshdrawnil \cellx4560\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4680\clshdrawnil \cellx9240\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 \par }{\ul\insrsid15601110\charrsid9977416 Appearing for the Petitioner}{\insrsid15601110\charrsid9977416 - \par }{\insrsid9977416 }{\ul\insrsid15601110\charrsid9977416 Governor Felix P. Camacho:}{\insrsid15601110\charrsid9977416 \par Arthur Clark, }{\i\insrsid15601110\charrsid9977416 Esq.}{\insrsid15601110\charrsid9977416 \par Calvo & Clark, LLP \par Attorneys at Law \par 655 S. Marine Dr., Ste. 202 \par Tamuning, GU 96911 \par \cell \par }{\ul\insrsid15601110\charrsid9977416 Appearing for the Party in Interest}{\insrsid15601110\charrsid9977416 - \par }{\insrsid9977416 }{\ul\insrsid15601110\charrsid9977416 Office of the Attorney General:}{\insrsid15601110\charrsid9977416 \par Elizabeth J. Greenberg \par Assistant Attorney General \par Office of the Attorney General \par Suite 2-200E, Judicial Ctr. Bldg \par 120 West O}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Brien Drive \par Hag\'e5t\'f1a, Guam 96910\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow0\irowband0\lastrow \ts11\trqc\trgaph120\trleft-120\trftsWidth1\trpaddl120\trpaddr120\trpaddfl3\trpaddfr3\tblrsid9977416 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4680\clshdrawnil \cellx4560\clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4680\clshdrawnil \cellx9240\row }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416 \par }{\insrsid15601110\charrsid9977416 BEFORE: F. PHILIP CARBULLIDO, Chief Justice, BENJAMIN J. F. CRUZ, Justice }{\i\insrsid15601110\charrsid9977416 Pro Tempore}{\insrsid15601110\charrsid9977416 ; and RICHARD H. BENSON, Justice }{ \i\insrsid15601110\charrsid9977416 Pro Tempore}{\insrsid15601110\charrsid9977416 .}{\insrsid9977416 \par \par }{\b\insrsid15601110\charrsid9977416 CARBULLIDO, C.J.:}{\insrsid15601110\charrsid9977416 \par \par }{\b\insrsid15601110\charrsid9977416 [1]}{\insrsid15601110\charrsid9977416 \tab The Governor of Guam, Felix P. Camacho (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 Governor}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ), filed a Request for Declaratory J udgment pursuant to Title 7 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 4104 requesting that this court determine whether the issuance of bonds authorized by Public Law 27-19 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 P.L. 27-19}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) would violate Section 11 of the Organic Act of Guam, (codified at 48 U.S.C. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1423a) (}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Section 11}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ), which limits public indebtedness to 10% of the aggregate tax valuation of the property on Guam.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Related to that determination, the Governor asks the court to interpret the phrase }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 aggregate tax valuation of the property on Guam}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 as used in Section 11, and to provide guidance on how the government is to ascertain the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 aggregate tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 when determining whether the debt limitation has been exceeded.}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 We find that the allowable public indebtedness under Section 11 is to be ascertained with reference to the appraised value of the property on Guam, as refle cted on the certified tax roll in effect at the time the debt is incurred.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 We further find that the 2002 tax roll was the product of a fair and reasonable valuation system, and thus can be used to determine the current debt limit.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 From these findings, an d considering the government}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s current outstanding public indebtedness, we conclude that the issuance of the bonds authorized by P.L. 27-19 would not violate the debt-limitation clause contained in Section 11 of the Organic Act. \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 I.}{\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [2]}{\insrsid15601110\charrsid9977416 \tab Public Law 27-19, enacted on April 28, 2003, was proposed upon the Legislature}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s finding that }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 the current revenues available in the General Fund [are] . . . insufficient to pay certain obligations of the General Fund and that a mechanism is needed to provide necessary cash to the General Fund to pay such obligations . . . .}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 Guam Pub. L. 27-19, }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1 (Apr. 28, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 P.L. 27-19 authorizes the Governor of Guam to issue new bonds of up to $418,309,857 for that purpose without further legislative approval.}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\insrsid15601110 The law also authorizes the issuance of an additional $50 million of bonds only upon further approval of the Legislature. \par }}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Of that amount, $218,309,857 may be used to pay income tax refunds, utility payments to the Guam Power Authority, retirement fund payments, withholding tax payments, ge neral fund vendor payables, and public school repairs.}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 Guam Pub .L. 27-19, }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 2 (Apr. 28, 2003). }}}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 The remaining $200 million may be used to }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 fund an escrow to pay debt service on all or a portion of the Government of Guam General Obligation Bonds, 1993 Series A at matched maturity.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Guam Pub. L. 27-19, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 2 (Apr. 28, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Pursuant to the authority granted by P.L. 27-19, the Governor intends to facilitate the issuance of approximately $393 million in bonds.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [3]}{\insrsid15601110\charrsid9977416 \tab Under Title 5 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 22601, government contracts may be entered into only upon execution of the Governor, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 after approval of the Attorney General.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Title 5 GCA }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 22601 (1996).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The Attorney General, Douglas B. Moylan (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 AG}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ), in a letter to the Governor and Speaker of the 27th Guam Legislature, Vicente C. Pangelinan, dated May 14, 2003, i ndicated his refusal to sign any contract for the issuance of the bonds claiming that the issuance of the bonds would violate the debt-limitation provision of Section 11 of the Organic Act of Guam.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Req. Decl. J., Exhibit A (AG Letter).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The AG}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s conclusion was based on his opinion that the government}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s maximum debt limit allowed under Section 11 is to be based on the assessed value of property on Guam, and that, in any event, the current tax list could not be used to determine the debt limit because it is inaccurate due to the fact that the valuation of property on Guam, required to be performed every three years under 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306, was last conducted in 1993.}{\insrsid15601110 \par }{\b\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [4]}{\insrsid15601110\charrsid9977416 \tab Presumably in response to the AG}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s concerns, on June 25, 2003, the Governor signed into law Public Law 27-21 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 P.L. 27-21}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ), which amends sections of the real property tax law in two regards. First, Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306 was amended to provide that if the triennial property valuations in Guam are not conducted by the tax assessor as required under that section, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 then the }{\i\insrsid15601110\charrsid9977416 last completed }{\insrsid15601110\charrsid9977416 valuation as supplemented by the annual adjustments provided for in }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24307 shall be the property tax valuation used under the Chapter.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Guam Pub .L. 27-21 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1 (June 25, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Second, the law added subsection (l) to Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24102, to provide that the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 aggregate tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 under Section 11 of the Organic Act was to be }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 certified as being one hundred percent (100%) of the appraised value of the property on Guam based on the }{\i\insrsid15601110\charrsid9977416 last completed}{\insrsid15601110\charrsid9977416 valuation conducted pursuant to [Title 11 GCA] }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306, as supplemented by the annual adjustments provided for in }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24307.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 Guam Pub. L. 27-21, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 2 (June 25, 2003).}{ \insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [5]}{\insrsid15601110\charrsid9977416 \tab On July 1, 2003, the Governor filed the instant Request for Declaratory Judgment in this court.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The court thereafter permitted the Attorney General to intervene in the proceeding. \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 II.}{\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [6]}{\insrsid15601110\charrsid9977416 \tab This court has jurisdiction to issue declaratory judgments upon the request of the Governor under Title 7 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 4104.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 Title 7 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 4104 (as amended by P.L. 24-61, Sept. 17, 1997).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 O ur authority extends to providing }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 the interpretation of any law, federal or local, lying within the jurisdiction of the courts of Guam to decide}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 or answering }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 any question affecting the powers and duties of the Governor and the operation of the Executive Branch . . . .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 .}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 We find that the Governor}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s Request satisfies the jurisdictional standards set forth in Title 7 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 4104.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The issues presented require an interpretation of local and federal law, and relate to the Governor}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s ability to lawfully execute bonds allowed by the Legislature under P.L. 27-19, as necessary to manage the executive branch. \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 III. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416\charrsid9977416 \par }\pard \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 A.}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 Issues}{\b\insrsid15601110 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [7]}{\insrsid15601110\charrsid9977416 \tab The Governor seeks a declaratory judgment on the following three questions: \par }\pard \qj \li0\ri1440\nowidctlpar\faauto\rin1440\lin0\itap0\pararsid9977416 {\insrsid9977416 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 (1) Whether the public indebtedness of Guam, after the contemplated issuance of bonds authorized by [P.L.] 27-19, will be within 10% of the aggregate tax valuation of the property in Guam, the maximum permitted by Section 11 of the Organic Act of Guam; and \par }\pard \qj \li0\ri1440\nowidctlpar\faauto\rin1440\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 (2) Whether }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 aggregate tax valuation of the property on Guam}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 as that phrase is used in Section 11 of the Organic Act of Guam means one hundred percent (100%) of the appraised value of the taxable property on Guam; and \par }\pard \qj \li0\ri1440\nowidctlpar\faauto\rin1440\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 (3) Whether even if one or more of the triennial valuations required by 11 G.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306 has not been conducted, the Government may conclusively presume that the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 aggregate tax valuation of the property in Guam}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 as used in Section 11 of the Organic Act of Guam is not less than the aggregate appraised value ascertained by the Director of the Department of Revenue and Taxation (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 DRT}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 ), as assessor, pursuant to the last completed valuation conducted pursuant to 11 G.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 24306 as supplemented by the annual adjustments provided for in 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 24307. \par }\pard \qj \li0\ri1440\nowidctlpar\faauto\rin1440\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 Req. Decl. J., p. 4 (July 1, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The answers to these questions require a determination of the following issues: (1) the meaning of the terms }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 aggregate tax valuation,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 property,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 and }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 indebtedness}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in Section 11 of the Organic Act; (2) the sufficiency of the 2002 tax roll in determining the current debt limit; and (3) Guam}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s current level of indebtedness based on the interpretation of the relevant terms in Section 11 with reference to the 2002 tax roll.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 B.}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 Standard of Review}{\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [8]}{\insrsid15601110\charrsid9977416 \tab This case is brought pursuant to our original, rather than appellate, jurisdiction; thus, all issues are determined herein in the first instance.}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 See In re Request of Governor Carl T.C. Gutierrez}{\insrsid15601110\charrsid9977416 , 2002 Guam 1, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 8.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The questions presented for the court}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s determination require the interpretation of federal and local statues applicable to Guam.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The interpretation of these statutes is a legal question within this court}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s authority to decide.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See Pangelinan v. Gutierrez}{\insrsid15601110\charrsid9977416 , 2000 Guam 11, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 26 (}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Federal court decisions do not prevent this court from determining the correct interpretation of provisions of the Organic Act, Guam}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s constitution.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ), }{\i\insrsid15601110\charrsid9977416 aff}{ \i\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 d}{\insrsid15601110\charrsid9977416 }{\i\insrsid15601110\charrsid9977416 by}{ \insrsid15601110\charrsid9977416 }{\i\insrsid15601110\charrsid9977416 Gutierrez v. Pangelinan}{\insrsid15601110\charrsid9977416 , 276 F.3d 539 (9th Cir. 2002); }{\i\insrsid15601110\charrsid9977416 Government of Guam v. 221 Slot Machines}{ \insrsid15601110\charrsid9977416 , 2002 Guam 22, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 4}{\i\insrsid15601110\charrsid9977416 }{ \insrsid15601110\charrsid9977416 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Issues of statutory interpretation are questions of law that are reviewed de novo.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (citation and internal brackets omitted).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 C.}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 Discussion}{\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [9]}{\insrsid15601110\charrsid9977416 \tab The primary issue presented to the court is whether the issuance of one or more series of bonds in the aggregate amount not to exceed $418,309,857, as allowed by P.L. 27-19, would violate Section 11 of the Organic Act.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \fi1440\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 1.}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 Section 11 Debt-Limitation Provision}{\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [10]}{\insrsid15601110\charrsid9977416 \tab Section 11 of the Organic Act contains a statutory limitation upon government borrowing, commonly referred to as a debt-limitation provision.}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 15 M}{\insrsid15601110\charrsid9977416 C}{\insrsid15601110\charrsid9977416 Q}{\insrsid15601110\charrsid9977416 UILLIN, }{\insrsid15601110\charrsid9977416 T}{ \insrsid15601110\charrsid9977416 HE }{\insrsid15601110\charrsid9977416 L}{\insrsid15601110\charrsid9977416 AW OF }{\insrsid15601110\charrsid9977416 M}{\insrsid15601110\charrsid9977416 UNICIPAL }{\insrsid15601110\charrsid9977416 C}{ \insrsid15601110\charrsid9977416 ORPORATIONS}{\insrsid15601110\charrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 41.01 (3d Ed. 1949). }{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 Most states and local municipalities have constitutional or statutory limitations on borrowing. }{\i\f41\fs20\insrsid15601110 See }{\f41\fs20\insrsid15601110 15 MCQUILLIN, }{\i\f41\fs20\insrsid15601110 supra}{\f41\fs20\insrsid15601110 , }{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 41.01 (}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f36\fs20}}}{\f41\fs20\insrsid15601110 A majority of the states have constitutional or statutory limitations upon borrowing by local governments.}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f36\fs20}}}{\f41\fs20\insrsid15601110 ); }{\i\f41\fs20\insrsid15601110 Guam Telephone Authority v. Rivera}{\f41\fs20\insrsid15601110 , 416 F. Supp. 283, 285 (D. Guam 1976) (}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 Section 11 is similar to sections included in the Constitutions of most states.}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 ).}{\f41\insrsid15601110 }}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Section 11 provides in relevant part:}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 Taxes and assessments on property, internal revenues, sales, license f ees, and royalties for franchises, privileges, and concessions may be imposed for the purposes of the government of Guam as may be uniformly provided by the Legislature of Guam, and when necessary to anticipate taxes and revenues, bonds and other obligati ons may be issued by the government of Guam: }{\i\insrsid15601110\charrsid9977416 Provided, however, That no public indebtedness of Guam shall be authorized or allowed in excess of 10 per centum of the aggregate tax valuation of the property in Guam.}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 Bonds or other obligations of the governme nt of Guam payable solely from revenues derived from any public improvement or undertaking shall not be considered public indebtedness of Guam within the meaning of this section.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri1440\nowidctlpar\faauto\rin1440\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 48 U.S.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 1423a (emphasis added).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [11]}{\insrsid15601110\charrsid9977416 \tab The purposes of the debt-limitation provision in Section 11 have never been articulated by this court.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 However, it is widely recognized that debt-limitation provisions }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 serve as a l imit to taxation and as a protection to taxpayers; to maintain . . . solvency, both governmental and proprietary; and to keep [local] . . . residents from abusing their credit, and to protect them from oppressive taxation.}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 15 M}{\insrsid15601110\charrsid9977416 C}{\insrsid15601110\charrsid9977416 Q}{ \insrsid15601110\charrsid9977416 UILLIN}{\insrsid15601110\charrsid9977416 , }{\i\insrsid15601110\charrsid9977416 supra}{\insrsid15601110\charrsid9977416 , }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 41.01 (footnotes omitted); }{\i\insrsid15601110\charrsid9977416 see also}{\insrsid15601110\charrsid9977416 Tracy Nicholas Eddy, }{\i\insrsid15601110\charrsid9977416 The Referendum Requirement: A Constitutional Limitation on Local Government Debt in Florida}{\insrsid15601110\charrsid9977416 , 38 U. M}{\insrsid15601110\charrsid9977416 IAMI}{\insrsid15601110\charrsid9977416 L. R}{\insrsid15601110\charrsid9977416 EV}{ \insrsid15601110\charrsid9977416 . 677, 679 (1984) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 The primary objectives of the debt restrictions are preventing corruption, discouraging extravagance, and promoting sound fiscal policy for local governments.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ); }{\i\insrsid15601110\charrsid9977416 see also City of Hartford v. Kirley}{\insrsid15601110\charrsid9977416 , 493 N.W.2d 45, 51 (Wis. 1992) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Article XI, sec. 3(2), is intended to prevent the creation of excessive municipal debt and to protect taxpayers from the conseque nt oppression of burdensome, if not ruinous, taxation.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 Furthermore, their purpose is to }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 prevent the current legislature from binding a future legislature, and to prevent legislators from making future taxpayers pay today}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s bills.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 15 M}{\insrsid15601110\charrsid9977416 C} {\insrsid15601110\charrsid9977416 Q}{\insrsid15601110\charrsid9977416 UILLIN}{\insrsid15601110\charrsid9977416 , }{\i\insrsid15601110\charrsid9977416 supra}{\insrsid15601110\charrsid9977416 , }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 41.01; }{\i\insrsid15601110\charrsid9977416 Keller v. City of Scranton}{\insrsid15601110\charrsid9977416 , 49 A. 781, 782 (Pa. 1901) (}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 The constitutional provision i[s] intended . . . to prevent municipalities from loading the future with obligations to pay for things the present desires, but cannot justly afford, and, in short, to establish the principle that, beyond the defined limits, they must pay as they go.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ); }{\i\insrsid15601110\charrsid9977416 see also City of Hartford}{\insrsid15601110\charrsid9977416 , 493 N.W.2d at 51 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 It seeks to impose the burden of debt repayment upon those who create the obligations, not upon future generations.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \fi1440\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 2.}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\b\insrsid15601110\charrsid9977416 Aggregate Tax Valuation of the Property in Guam}{\b\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [12]}{\insrsid15601110\charrsid9977416 \tab Under Section 11, the public indebtedness of Guam cannot exceed }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 10 per centum of the }{\i\insrsid15601110\charrsid9977416 aggregate tax valuation}{\insrsid15601110\charrsid9977416 of the property in Guam.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 48 U.S.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 1423a (emphasis added).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The phrase }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 aggregate tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 is not defined in the Organic Act.}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [13]}{\insrsid15601110\charrsid9977416 \tab The Governor argues that the phrase }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 aggregate tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 means the }{ \i\insrsid15601110\charrsid9977416 appraised value}{\insrsid15601110\charrsid9977416 , as distinguished from }{\i\insrsid15601110\charrsid9977416 assessed value}{\insrsid15601110\charrsid9977416 , of the property on Guam.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 By contrast, the Attorney General argues that the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 valuation}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in Section 11 is the same as the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 value}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in local statutes governing Guam real property taxes, Chapter 24 of Division 2, Title 11 GCA.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Under 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24102, the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 value}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 is defined as }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 thirty-five per cent (35%) of the appraised value . . . .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24102(f) (1996).}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Appraised value}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 is defined in the same section as }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 the amount at which property would be taken in payment of a just debt from a solvent debtor.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 .}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \fi2160\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 a.}{\b\insrsid9977416 }{\b\i\insrsid15601110\charrsid9977416 Barrett-Anderson v. Crisostomo}{\b\insrsid15601110\charrsid9977416 .}{ \insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [14]}{\insrsid15601110\charrsid9977416 \tab Only one local court has defined the phrase }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 aggregate tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 found in the Organic Act.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See Barrett-Anderson v. Crisostomo}{\insrsid15601110\charrsid9977416 , CV0651-89 (Super. Ct. Guam Nov. 21, 1989).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 In }{\i\insrsid15601110\charrsid9977416 Barrett-Anderson}{\insrsid15601110\charrsid9977416 , GEDA authorized the issue of limited obligation infrastructure improvement bonds and water system revenue bonds.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id. }{ \insrsid15601110\charrsid9977416 at p. 1.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The then-legislative counsel issued a memo opining that the issuance of the bonds would violate the debt-limitation provision contained in Section 11 of the Organic Act.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 . at p. 2.}{\i\insrsid9977416 }{\insrsid15601110\charrsid9977416 His opinion was based on his conclusion that the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 aggregate tax valuation of the property in Guam,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 as used in Section 11, referred to the assessed value of taxable property, and not the appraised or market value of the property.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Then Superior Court Judge Janet Healy Weeks disagreed.}{ \cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 Judge Weeks was subsequently appointed Associate Justice of the Guam Supreme Court. She has since retired.}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 She concluded, instead, that the phrase }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 aggregate tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 means the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 appraise d value of the taxable property on Guam.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 . at p. 14.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 In reaching this conclusion, Justice Weeks started with the principle that the interpretation of a statute should be gleaned from the legislative intent.}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 . at p. 12.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 She found that because the concept of }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 assessed value}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 as used in relation to the assessment of property taxes was made part of local law after the enac tment of Section 11, and because these later-enacted local statutes governing real property tax assessments did not employ the same language as that used in Section 11 or otherwise reference the debt limitation in Section 11, those statutes, which premise tax assessments on 35% of the appraised value of taxable property, could not logically be used in interpreting Section 11 of the Organic Act.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Moreover, Justice Weeks found that using the assessed value as the base to calculate the debt limit would }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 set Guam}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s debt-ceiling at a far lower level then those municipalities that have proportionately greater property tax bases.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 . at p. 13.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 She concluded that }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [t]here is no indication that Congress, in enacting the Organic Act, sought to stifle economic growth on Guam by setting the debt ceiling restrictively low.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 .}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \fi2160\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 b.}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 Public Law 27-21 }{\b\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid15601110\charrsid9977416 2.}{\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [15]}{\insrsid15601110\charrsid9977416 \tab Public Law 27-21 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 2, enacted on June 25, 2003, added a new subsection (l) to Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24102 to define the phrase }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 aggregate tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in Section 11 as }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 one hundred percent (100%) of the appraised value of the property on Guam,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 thus codifying Justice Weeks}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 holding in }{ \i\insrsid15601110\charrsid9977416 Barrett-Anderson}{\insrsid15601110\charrsid9977416 .}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Guam Pub. L. 27-21 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 2 (June 25, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 This legislative determination, however, is not controlling on this court}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s interpretation of the phrase as used in Section 11.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The Guam Legislature cannot, through legislation, redefine the provisions of the Organic Act.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 15 MCQUILLIN, }{\i\insrsid15601110\charrsid9977416 supra}{ \insrsid15601110\charrsid9977416 , }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 41.05 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [W]ith respect to territories, debt limits may be prescribed by act of Congress.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 [A] constitutional debt-limitation provision is self-executing and the legislature cannot authorize a municipality to incur a greater debt than that fixed by the constitution.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 While the Organic Act is a federal statute, it is, for all intents and purposes here, the equivalent of a constitution. }{ \i\f41\fs20\insrsid15601110 See Haeuser v. Dep}{\i\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\i\f41\fs20\insrsid15601110 t of Law}{\f41\fs20\insrsid15601110 , 97 F.3d 1152, 1156 (9th Cir. 1996) (}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 The Organic Act serves the function of a constitution for Guam.}{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 ).}{\i\f41\fs20\insrsid15601110 }{\f41\fs20\insrsid15601110 This is underscored by the well-established principle in this jurisdiction that the Guam Legislature cannot enact laws which are in derogation of the provisions of the Organic Act. 48 U.S.C.A. 1423a (}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 The legislative power of Guam shall extend to all rightful subjects of legislation of [local application] }{\i\f41\fs20\insrsid15601110 not inconsistent with this chapter }{\f41\fs20\insrsid15601110 and the law of the United States applicable to Guam}{\i\f41\fs20\insrsid15601110 .}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f36\fs20}}}{\f41\fs20\insrsid15601110 ) (emphasis added);}{\i\f41\fs20\insrsid15601110 see In re Request of Governor}{\f41\fs20\insrsid15601110 , 2002 Guam 1, }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 36 (}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 [T]he legislature may not enact a law encroaching upon the Governor's authority and powers which are mandated by the Organic Act.}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{ \f41\fs20\insrsid15601110 ) (citation omitted). }{\f41\insrsid15601110 }}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 15 M}{\insrsid15601110\charrsid9977416 C}{\insrsid15601110\charrsid9977416 Q}{\insrsid15601110\charrsid9977416 UILLIN}{ \insrsid15601110\charrsid9977416 , }{\i\insrsid15601110\charrsid9977416 supra}{\insrsid15601110\charrsid9977416 , }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 41.05.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, the Organic Act limits the legislature}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 s power with regard to government indebtedness.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See Breslow v. School District}{\insrsid15601110\charrsid9977416 , 182 A.2d 501, 504-05 (Pa. 1962) (holding that a statute which defined the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 assessed value}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in the constitution}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s debt-limit provision to mean market value was unconstitutional because it contradicted the plain language of the constitution requiring the debt limit to b e based on assessed value); }{\i\insrsid15601110\charrsid9977416 see also City Water Supply Co. v. City of Ottumwa}{\insrsid15601110\charrsid9977416 , 120 F. 309, 314 (S.D. Iowa 1903) (stating that the constitutional debt-limitation provision could not be circumvented by statute upon consent of the voters because if that were so, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 then we have no use for the constitution}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 ); }{\i\insrsid15601110\charrsid9977416 cf. City of Hartford}{\insrsid15601110\charrsid9977416 , 493 N.W.2d at 50 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Notwithstanding the legislature}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s recital that TIF bonds do not constitute a debt within the meaning of the constitution, the court must examine the substance of the obligations to ascertain their effect under art. XI, sec. 3.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The legislature}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s characterization of the bonds is not controlling on this court}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s determination of the constitutional issue.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The problem inherent in allowing the legislature to define the terms of the Organic Act is plain: } {\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 all that any Legislature would have to do, in order to circumvent the Constitution is to pass an Act defining or redefining any term or any language used in the Constitution to suit its purpose or objective.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Breslow}{\insrsid15601110\charrsid9977416 ,}{\i\insrsid15601110\charrsid9977416 }{ \insrsid15601110\charrsid9977416 182 A.2d at 505.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Such circumvention through local legislation would nullify the debt-limitation provision which Congress imposed.}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 Id. }{\insrsid15601110\charrsid9977416 at 504-05}{\i\insrsid15601110\charrsid9977416 }{\insrsid15601110\charrsid9977416 (concluding that the legislature cannot pass statutes which }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 attempt to circumvent the Constitution and double or triple the borrowing capacity of municipalities}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [16]}{\insrsid15601110\charrsid9977416 \tab Finally, we are mindful that our interpretation of Section 11 must be guided by the rules of interpretation and precedent.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 The court may not }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 permit a distortion of principles and t ime-honored precedents merely to satisfy the lust of a greedy and overindulgent, benevolent government . . . .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 Allen v. Van Buren Township of Madison County}{\insrsid15601110\charrsid9977416 , 184 N.E.2d 25, 31 (Ind. 1962). \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [17]}{\insrsid15601110\charrsid9977416 \tab }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 In cases involving statutory construction, the plain language of a statute must be the starting point.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 See Aguon v. Gutierrez}{\insrsid15601110\charrsid9977416 , 2002 Guam 14, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 6 (citations omitted).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [O]ur duty is to interpret statutes in light of their terms and legislative intent.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 Carlson v. Guam Tel. Auth.}{\insrsid15601110\charrsid9977416 , 2002 Guam 15, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 46 n.7; }{\i\insrsid15601110\charrsid9977416 see also In re Request of Gutierrez}{\insrsid15601110\charrsid9977416 , 2002 Guam 1, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 17 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 When interpreting a statute, the court}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s task is to determine the intent of the legislature and give the statute meaning without altering or amending the statute}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s scope.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Undefined terms in a statute are generally ascribed their common ordinary meaning.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Carlson}{\insrsid15601110\charrsid9977416 , 2002 Guam 15 at }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 34.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 Moreover, in determining legislative intent, a statute should be read as a whole,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 and therefore, we are to }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 constr ue each section in conjunction with other sections.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Sumitomo v. Gov}{ \i\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 t of Guam}{\insrsid15601110\charrsid9977416 , 2001 Guam 23, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 17; }{\i\insrsid15601110\charrsid9977416 Gutierrez v. Ada}{\insrsid15601110\charrsid9977416 , 528 U.S. 250, 255, 120 S. Ct. 740, 744 (2000) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [W]ords and people are known by their companions.}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [T]he language of the statute cannot be read in isolation, and must be examined within its context. . . . A statute}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s context includes looking at other provisions of the same statute and other related statutes.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Aguon}{\insrsid15601110\charrsid9977416 , 2002 Guam 14 at }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 9.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Finally, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 questions of statutory interpretation may be aided by reference to the prevailing interpretation of othe r statutes that share the same language and either have the same general purpose or deal with the same general subject as the statute under consideration.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Aguon}{\insrsid15601110\charrsid9977416 , 2002 Guam 14 at }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 11 (citation omitted).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [18]}{\insrsid15601110\charrsid9977416 \tab After reviewing the language of Section 11, we disagree with the AG}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s contention that }{\i\insrsid15601110\charrsid9977416 valuation}{\insrsid15601110\charrsid9977416 in Section 11 be interpreted as }{\i\insrsid15601110\charrsid9977416 value }{ \insrsid15601110\charrsid9977416 under Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24102(f).}{ \cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 As indicated earlier, }{\i\f41\fs20\insrsid15601110 value}{\f41\fs20\insrsid15601110 is defined as }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 thirty-five (35%) of the appraised value; }{\i\f41\fs20\insrsid15601110 appraised value}{\f41\fs20\insrsid15601110 means the amount at which property would be taken in payment of a just debt from a solvent debtor.}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 11 GCA }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{ \f41\fs20\insrsid15601110 24102(f) (emphasis added)}{\f41\insrsid15601110 . }}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 First, the two phrases are different; the term }{\i\insrsid15601110\charrsid9977416 value}{ \insrsid15601110\charrsid9977416 is distinct from the term }{\i\insrsid15601110\charrsid9977416 valuation}{\insrsid15601110\charrsid9977416 .}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See Barrett-Anderson}{\insrsid15601110\charrsid9977416 ,} {\i\insrsid15601110\charrsid9977416 }{\insrsid15601110\charrsid9977416 CV0651-89, pp. 12-13.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Second, the definition in the local statute cannot reasonably be viewed as the definition Congress intended for the phrase }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in Section 11 because the two statutes were enacted by completely different legislative bodies, and, moreover, as acknowledged by Justice Weeks in }{\i\insrsid15601110\charrsid9977416 Barrett-Anderson v. Crisostomo}{\insrsid15601110\charrsid9977416 , Section 11 was enacted prior to 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24102(f).}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 See Barrett-Anderson}{\insrsid15601110\charrsid9977416 ,}{\i\insrsid15601110\charrsid9977416 }{\insrsid15601110\charrsid9977416 CV0651-89, pp. 12-13; }{\i\insrsid15601110\charrsid9977416 Slaven v. BP America, Inc.}{ \insrsid15601110\charrsid9977416 , 973 F.2d 1468, 1475 (9th Cir. 1992) (determining that actions by a later legislature have little relevance in interpreting a prior legislature}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s actions).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Finally, and most importantly, the plain language of Section 11 does not support the AG}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s argument that the assessed value of property should be used to calculate Guam}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s debt limit.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [19]}{\insrsid15601110\charrsid9977416 \tab Reference to the Organic Act of the Virgin Islands underscores this point.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The debt-limitation provision in the Organic Act of the Virgin Islands, codified at 48 U.S.C. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1403, was enacted by the same Congress which enacted Section 11.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The Virgin Island}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}} }{\insrsid15601110\charrsid9977416 s provision was enacted a mere 10 months prior to the enactment of Section 11.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Title 48 U.S.C. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1403 provides that }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 no public indebtedness of the government of the Virgin Islands shall be incurred in excess of 10 per centum of the }{\i\insrsid15601110\charrsid9977416 aggregate}{\insrsid15601110\charrsid9977416 }{ \i\insrsid15601110\charrsid9977416 assessed}{\insrsid15601110\charrsid9977416 }{\i\insrsid15601110\charrsid9977416 valuation}{\insrsid15601110\charrsid9977416 of the taxable real property in the islands.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 48 U.S.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1403 (emphasis added).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Congress provided that the governmental debt of the Virgin Islands be determined by the }{ \i\insrsid15601110\charrsid9977416 assessed}{\insrsid15601110\charrsid9977416 valuation of the taxable property.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 In contrast, the same Congress in enacting the Organic Act of Guam did not provide that the debt limit of the government of Guam be based on the }{\i\insrsid15601110\charrsid9977416 assessed}{\insrsid15601110\charrsid9977416 values of the property on Guam.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 48 U.S.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1423a.}{\insrsid9977416 } {\insrsid15601110\charrsid9977416 Rather, the debt limit under Section 11 is to be determined by the }{\i\insrsid15601110\charrsid9977416 tax valuation}{\insrsid15601110\charrsid9977416 of the property on Guam.}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 .}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 This difference in the statutory language demonstrates that under the plain language of Section 11, the debt limit is not to be based on the }{\i\insrsid15601110\charrsid9977416 assessed}{\insrsid15601110\charrsid9977416 valuation of property.}{ \insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [20]}{\insrsid15601110\charrsid9977416 \tab In fact, in other jurisdictions where courts have interpre ted their debt-limitation provisions as requiring the limit to be based on assessed values, their constitutional debt limitation provisions specifically provided that assessed values be used.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See e.g. }{\insrsid15601110\charrsid9977416 }{\i\insrsid15601110\charrsid9977416 Breslow}{\insrsid15601110\charrsid9977416 , 182 A.2d at 503-05 (invalidating as unconstitutional a local law which redefined the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 assessed value}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 to mean }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 market value}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 for purposes of the debt-limitation provision where the Constitution provided that }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [t]he debt of any . . . school district . . .shall never exceed seven (7) per centum upon the }{\i\insrsid15601110\charrsid9977416 assessed value of the taxable property}{\insrsid15601110\charrsid9977416 . . . .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (citation omitted) (emphasis added); }{\i\insrsid15601110\charrsid9977416 Allen}{\insrsid15601110\charrsid9977416 , 184 N.E.2d at 29 (holding that because, under the constitutional language, the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 value of taxable property}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 was to be ascertained }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 by the last }{ \i\insrsid15601110\charrsid9977416 assessment}{\insrsid15601110\charrsid9977416 ,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 the debt limitation was to be based on the assessed value) (citing Article 13, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1 of the Indiana Constitution which provided that }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [n]o political or municipal corporation in this State shall ever become indebted in any manner or for any pur pose to an amount in the aggregate exceeding two percent of the value of the taxable property within such corporation, to be ascertained by the last }{\i\insrsid15601110\charrsid9977416 assessment}{\insrsid15601110\charrsid9977416 for State and county taxes, previous to the incurring of such indebtedness}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ); }{ \i\insrsid15601110\charrsid9977416 Phelps v. City of Minneapolis}{\insrsid15601110\charrsid9977416 , 219 N.W. 872, 873-74 (Minn. 1928) (holding that the debt limit was to be based on the assessed, as opposed to actual, value of the taxable property in light of the constitutional language limiting the net indebtedness of the city to 10% }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 of the last }{\i\insrsid15601110\charrsid9977416 assessed}{\insrsid15601110\charrsid9977416 value of all taxable property therein}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (emphasis added); }{\i\insrsid15601110\charrsid9977416 City of Chicago v. Fishburn}{\insrsid15601110\charrsid9977416 , 59 N.E. 791, 792-93 (Ill. 1901) (determining that the constitutional provision limiting the debt limit to 5% of the value of taxable property as of the last assessment referred to the }{ \i\insrsid15601110\charrsid9977416 assessed}{\insrsid15601110\charrsid9977416 value and not actual value, especially in light of the common understanding that the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 assessment, in connection with taxation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 means }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 an official valuation of property for the purp ose of fixing the proportion of taxes which each one shall pay,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 and the commonly known fact that }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 property was not assessed at full value}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ); }{\i\insrsid15601110\charrsid9977416 Baisden v. City of Greenville}{\insrsid15601110\charrsid9977416 , 111 So. 2, 4-5 (Ala. 1927) (holding that the constitutional debt-limitation provision which limited the municipality}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s indebtedness to a fixed percent of }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 the }{ \i\insrsid15601110\charrsid9977416 assessed}{\insrsid15601110\charrsid9977416 value of the property therein,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 means }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 the assessed value of the property as fixed for state taxation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (internal quotations omitted) (emphasis added).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [21]}{\insrsid15601110\charrsid9977416 \tab Viewing Section 11, there is simply no requirement that the debt limit be based on }{\i\insrsid15601110\charrsid9977416 assessed}{\insrsid15601110\charrsid9977416 values.}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 Had Congress wished to limit Guam}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s indebtedness to a percentage of assessed values, it could have included that language in Section 11 as they did with the Virgin Islands, and as was done by the framers of the c}{\insrsid9977416 onstitutions of several states.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [22]}{\insrsid15601110\charrsid9977416 \tab The debt limit under Section 11 is to be based on the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}} {\insrsid15601110\charrsid9977416 tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 of property.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 48 U.S.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1423a.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 We interpret the phrase }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 tax valuation}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 to mean the appraised value of property}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 on Guam, and not the assessed value, because all taxes on property must necessarily be based, in the first instance, upon appraised values of the property.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24102(f) (defining value for purposes of tax levies as }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 thirty-five percent (35%) of the}{\i\insrsid15601110\charrsid9977416 appraised value}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (emphasis added); }{\i\insrsid15601110\charrsid9977416 Hansen v. City of Hoquiam}{\insrsid15601110\charrsid9977416 , 163 P. 391, 392 (Wash. 1917) (recognizing that while a state statute required that property be assessed at a rate not exceeding 50% of actual value, because this assessment rate }{\i\insrsid15601110\charrsid9977416 was necessarily based on the actual value}{\insrsid15601110\charrsid9977416 , then logically in every assessment the appraised value of the property was ascertained).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Moreover, there is nothing in the Organic Act limiting the levy of property taxes to a certain percentage of actual or market value.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, it cannot be presumed that Congress meant to restrict the debt limit to a particular assessment rate to be determined by the local legislature.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The better reading of the phrase }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 tax valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 is the value which Congress contemplated the taxes would be based, which, considering the absence of a limitation regarding assessment r ates, could only rationally be the appraised market value of the property.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [23]}{\insrsid15601110\charrsid9977416 \tab Further, our interpretation is consistent with the maximum power to tax granted by Congress.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Congress granted the local legislature the power to tax property.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 48 U.S.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 1423a.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Congress also intended that the government of Guam be able to incur }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in the constitutional sense.}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 Any bonds or other obligations which are not issued upon the pledge of governmental taxes and revenues are not }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in the constitutional sense, and are thus not generally subject to a constitutional debt-limitation provision.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 City of Hartford}{\insrsid15601110\charrsid9977416 , 493 N.W.2d at 51 n.13 debt in a constitutional sense }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 must be an undertaking enforceable by the creditor }{\i\insrsid15601110\charrsid9977416 against the municipality or its assets}{\insrsid15601110\charrsid9977416 ) (citation omitted and emphasis added).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Because Section 11 contains a limitation on }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 indebtedness,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Congress clearly granted the government the authority to incur }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 that is, the power to incur obligations payable out of the general revenues of the government.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The power to incur }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 is clearly tied to the power to tax, because in incurring debt, the government pledges its credit, }{\i\insrsid15601110\charrsid9977416 i.e.}{\insrsid15601110\charrsid9977416 , its taxing power.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See Id}{\insrsid15601110\charrsid9977416 . at 55-56.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, the limitation on incurring debt in Section 11 must be interpreted consistently with the power to tax.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 Because Congress did not impose an assessment rate in the Organic Act, Congress clearly granted the legislature the power to impose taxes on the full market value of property.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 We thus can only interpret the debt limitation in Section 11 consistently with the maximum grant of power to tax allowed by Congress.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 It follows that the congressionally imposed limitation on government indebtedness under Section 11 is based on the full market value of property, and not anything less.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Whether the legislature chooses to levy based upon assessed values which are lower than actual values, or whether the legislature declines to tax the property at a rate necessary t o satisfy the underlying obligations, are matters of policy and fiscal management which this court cannot dictate.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Nor are we called to pass upon those questions.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 The issue before us relates to the object upon which the debt limit in Section 11 is based, and basing it on appraised values is entirely consistent with the taxing authority granted to the legislature under the Organic Act.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \fi1440\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 3.}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 Meaning of }{\b\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid15601110\charrsid9977416 Property.}{\b\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [24]}{\insrsid15601110\charrsid9977416 \tab The next relevant issue pertains to the property upon which the debt limit is to be calculated.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Under Section 11, the government}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s indebtedness shall not exceed 10% of the tax valuation of the }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 property on Guam.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The Governor argues that all property on Guam is to be considered, real and personal, and without regard to whe ther the property is exempt from taxation.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The AG argues that because only real property has been assessed for taxation purposes, only real property is to be considered in determining the allowable indebtedness.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The AG further argues that property which is exempted from taxation should not be considered. \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [25]}{\insrsid15601110\charrsid9977416 \tab Again, with this issue, we look first to the language of Section 11, and draw comparison to the debt-limitation provision contained in the Organic Act of the Virgin Islands.} {\insrsid9977416 }{\insrsid15601110\charrsid9977416 Under 48 U.S.C. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1403, the Virgin Islands}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 total indebtedness is a percentage of the value of }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 real property.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 48 U.S.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1403.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 The same Congress in enacting Section 11 limited Guam}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s debt to a percentage of }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 property.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Because the word }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 property}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in Section 11 is not further modified or clarified, it could only mean that all property on Guam, whether real or personal, be potentially included in calculating the debt limit.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Property clearly includes both real and personal property.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 15 M}{\insrsid15601110\charrsid9977416 C}{\insrsid15601110\charrsid9977416 Q}{ \insrsid15601110\charrsid9977416 UILLIN}{\insrsid15601110\charrsid9977416 , }{\i\insrsid15601110\charrsid9977416 supra}{\insrsid15601110\charrsid9977416 , }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 41.08 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 The valuation [of property used to calculate the debt limit] is usually based on the . . . value of personal as well as real property, but in some jurisdictions}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 the . . . value of real estate is the basis.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ); }{\i\insrsid15601110\charrsid9977416 see McLeland v. Marshall County}{\insrsid15601110\charrsid9977416 , 201 N.W. 401, 409 (Iowa 1924) (finding that the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 property}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in the constitutional debt limitation provision means real and personal property); }{\i\insrsid15601110\charrsid9977416 Bauch v. City of Cabool}{\insrsid15601110\charrsid9977416 , 148 S.W. 1003, 1006 (Mo. Ct. App. 1912) (holding that stock of merchants are included in determining tax valuation of }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 property}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in the debt-limitation provision).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [26]}{\insrsid15601110\charrsid9977416 \tab Further, unlike the Virgin Islands}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 Organic Act, where the debt limit is based on the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 taxable}{ \insrsid15601110\charrsid9977416 . . . property in the islands,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 the debt limit in Guam}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s Organic Act is to be based on the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 property on Guam.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 Compare }{\insrsid15601110\charrsid9977416 48 U.S.C. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1403, }{ \i\insrsid15601110\charrsid9977416 with }{\insrsid15601110\charrsid9977416 48 U.S.C. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1423a.}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 One conclusion from this comparison is that Congress did not intend to base Guam}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s debt limit on }{\i\insrsid15601110\charrsid9977416 taxable}{\insrsid15601110\charrsid9977416 property, or in other words, property currently taxed}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\fs20\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 We note that the Governor argues that }{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 taxable property}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f36\fs20}}}{\f41\fs20\insrsid15601110 in the Virgin Islands}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 Organic Act refers to property which }{ \i\f41\fs20\insrsid15601110 may}{\f41\fs20\insrsid15601110 be taxed, as distinguished from property that }{\i\f41\fs20\insrsid15601110 is}{\f41\fs20\insrsid15601110 being taxed. }{\i\f41\fs20\insrsid15601110 See}{\f41\fs20\insrsid15601110 Governor}{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 s Opening Brief, p. 30 n.14 (July 7, 2003). The Governor argues that Section 11 should be interpreted the same way, as including in the debt limit all property which is capable of being taxed, }{\i\f41\fs20\insrsid15601110 i.e.}{ \f41\fs20\insrsid15601110 , is }{\i\f41\fs20\insrsid15601110 taxable}{\f41\fs20\insrsid15601110 . The Governor}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 s contention that both Organic Acts should be interpreted in a similar manner ignores the fact that the two provisions employ different language. If the Governor}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 s interpretation of the Virgin Islands}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 Organic Act were accepted, then this would mean that by deleting the phrase }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 taxable property}{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 in Section 11, then all property on Guam, whether taxable or not (}{\i\f41\fs20\insrsid15601110 i.e.}{ \f41\fs20\insrsid15601110 , capable of being taxed or not), can be used to determine the debt limit. This is untenable because if interpreted in that manner, then we could include property on Guam owned by the United States in c alculating the debt limit. We do not think the Congress intended that U.S. owned property be included. Overall, we think that the phrase }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{ \f41\fs20\insrsid15601110 taxable property}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 in the Virgin Island}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 s Organic Act is better interpreted to mean property which is actually taxed, as distinguished from property which is merely capable of being taxed. }{ \i\f41\fs20\insrsid15601110 See}{\f41\fs20\insrsid15601110 }{\i\f41\fs20\insrsid15601110 Campbell v. Red Bud Consol. Sch. Dist.}{\f41\fs20\insrsid15601110 , 198 S.E . 225, 229 (Ga. 1938) (concluding that the value of personal property exempted from taxation should not be included in determining the debt limit of 7% of the }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 assessed value of all }{\i\f41\fs20\insrsid15601110 taxable}{\f41\fs20\insrsid15601110 property). In fact, it appears from the Virgins Islands}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 Five-Year Plan for Fiscal Recovery that the debt limit is based on property that is actually being taxed. }{\i\f41\fs20\insrsid15601110 See }{ \f41\fs20\insrsid15601110 5 Year Plan for Fiscal Recovery, www.usvi.org (July 23, 2003). In the report it was stated that in 1999, the Virgin Island}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f36\fs20}}}{\f41\fs20\insrsid15601110 s debt limit was $731 million, which is ten percent of the }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 taxable property in the Virgin Islands}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 valued at $7.31 billion. }{\i\f41\fs20\insrsid15601110 See }{ \f41\fs20\insrsid15601110 http://www.usvi.org/oit/5yrplan/section%20viii%20plan%20of%20finance_pages1-25.htm}{\i\f41\fs20\insrsid15601110 }{\f41\fs20\insrsid15601110 (July 23, 2003). In that same year, the government collected $55,382,513 in real property tax. }{\i\f41\fs20\insrsid15601110 See }{\f41\fs20\insrsid15601110 http:// www.usvi.org/oit/5yrplan/part%20i%20-%20section%20i_exhibit%20i-30,%20pages%20i-30%20and%20i-31.htm}{\i\f41\fs20\insrsid15601110 }{\f41\fs20\insrsid15601110 (July 23, 2003). Because real property tax is levied at 1.25% of 60% of the actual value of real property, a simple calculation reveals that a tax on $7.31 billion would yield approximately the same amount as the tax actually collected for that year. }{ \i\f41\fs20\insrsid15601110 See}{\f41\fs20\insrsid15601110 http://www.usvi.org/oit/5yrplan/part%20i%20-%20section%20i_general%20fund_pages%20i-1%20through%20i-40.htm (July 23, 2003). Thus, it appears that the $7.3 1 billion which the government based its debt limit on included the value of property which was }{\i\f41\fs20\insrsid15601110 actually}{\f41\fs20\insrsid15601110 taxed, and not exempt property. }{\i\f41\fs20\insrsid15601110 Id}{ \f41\fs20\insrsid15601110 . (noting that 46% of all real property in the Virgin Islands is exempt from real property taxes by virtue of both the }{\i\f41\fs20\insrsid15601110 local law}{\f41\fs20\insrsid15601110 and the Virgin Island}{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 s Organic Act). \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 {\f41\fs20\insrsid15601110 }}}{\insrsid15601110\charrsid9977416 .}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 This conclusion is conceivable; however, such interpretation disregards both the language of Section 11 and the policies underlying debt limitation provisions.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [27]}{\insrsid15601110\charrsid9977416 \tab Section 11 provides that the debt limit be based on the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\i\insrsid15601110\charrsid9977416 tax}{\insrsid15601110\charrsid9977416 valuation}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 of property in Guam.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Congress must have meant something when it used the word }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 tax}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in the first part of the clause.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 By using the term tax valuation, it is clear that the debt limit is to be based on the value of property being taxed.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 By specifying that the tax valuation is to be used, there would be no need to then say that the debt limit is to be based on the taxable property.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 If so, the clause would read: }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 aggregate tax valuation of the taxable property on Guam.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Because }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 tax}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 is used in th e first part of the clause, it would be superfluous to then say that the debt limit is to be based on the taxable property.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Moreover, it is imprudent to base the debt limit on non-taxed property because such property is not revenue generating.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 Debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in the constitutional sense is secured by taxes and revenues from the general fund.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The object of the limit is to place a cap on debt which is to be satisfied from the ge neral revenues of the government.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Property which is not taxed does not contribute to the general revenue of the government, and thus should not be used to determine the debt limit.}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 See State ex rel. Village of Oak Hill v. Brown}{\insrsid15601110\charrsid9977416 , 180 N.E. 707, 709 (Ohio 1932) (finding that }{\i\insrsid15601110\charrsid9977416 because bonds were secured by taxable property}{ \insrsid15601110\charrsid9977416 , and because the indebtedness was therefore calculated based upon taxable property, the 1930 list, which included non-taxable property, could not be used in determining the city}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s debt limit) (emphasis added)}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 See also }{\i\f41\fs20\insrsid15601110 Employees}{ \i\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\i\f41\fs20\insrsid15601110 Retirement System v. Ho}{\f41\fs20\insrsid15601110 , 352 P.2d 861, 886-87 (1960), w here the dissenting justices provided a good explanation of the rationale for tying the debt limit to the property values, stating: \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 {\f41\fs20\insrsid15601110 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0 {\f41\fs20\insrsid15601110 It has been argued that the use of a percentage of assessed value as a measure of the State debt limit is without signific ance, since the real property tax is a county revenue. However, as explained by the Chairman of the Committee on Taxation and Finance during debate . . . upon consideration of the debt limit provisions, June 19, 1950: the people that buy the bonds are in terested in the ratio of your debts to your assessed value because while all of the tax revenues of the State or the counties naturally are available for the payment of the debt, it}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 s been customary for bondholders to look to the real property tax as their real collateral. \par \par It is noteworthy that the power to impose a real property tax is reserved to the State by Article VII, section 3, so that this customary collateral may be looked to when the general faith and cr edit of the State are pledged as is done in the case of general obligation bonds, even though there be no real possibility that resort to the real property tax may be necessary. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 {\f41\fs20\insrsid15601110 \par }{\i\f41\fs20\insrsid15601110 Employees}{\i\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\i\f41\fs20\insrsid15601110 Retirement System}{\f41\fs20\insrsid15601110 , 352 P.2d at 886-87.}{ \f41\insrsid15601110 \par }}}{\insrsid15601110\charrsid9977416 .}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 This interpretation is not inconsistent with our previous determination that the appraised value of property be used to determine the government}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 s debt limit. It is one thing to base the debt limit on a valuation consistent with the legislature}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 s maximum authority to tax property, because it is the taxes on property which secures the debt. So long as the legislature can tax property at its full ap praised valuation, there is adequate security underlying the debt. This is especially so in light of the fact that the legislature may increase the tax rate (}{\i\f41\fs20\insrsid15601110 i.e.}{\f41\fs20\insrsid15601110 , the levy), to satisfy the government}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 s debt. I t is a different thing altogether to say that the government can incur debt based on property it has chosen not to tax at all. Such exempt property cannot possibly generate revenue, thus does not secure the debt, and therefore should not be included in t he determining the debt limit at the present time.}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 If the government decides to tax currently exempt property in the future, then its debt limit may be increased according}{\insrsid9977416 ly at that later point in time.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [28]}{\insrsid15601110\charrsid9977416 \tab Accordingly, under Section 11, property which is not taxed at the present time, including personal property and exempt real property, is not included in determining the debt limit.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \fi1440\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 4.}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 Calculating the Debt limit: Sufficiency of 2002 Tax Rolls}{ \insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [29]}{\insrsid15601110\charrsid9977416 \tab Having determined that under Section 11, the debt limi t is to be based on the appraised value of all taxed property on Guam, the next logical question is where or how to ascertain the appraised value of property.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The language of Section 11 does not answer the question. \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [30]}{\insrsid15601110\charrsid9977416 \tab Unlike the debt-limitation provisions in other jurisdictions, Section 11 does not specify the particular interval of time when the debt limit computation is to be determined. }{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Cf. Allen}{\insrsid15601110\charrsid9977416 , 184 N.E.2d at 27 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 No political or municipal corporation in this State shall ever become indebted in any manner or for any purpose to an amount in the aggregate exceeding two percent of the value of the taxable property within such corporation, }{ \i\insrsid15601110\charrsid9977416 to be ascertained by the last assessment for State and county taxes, previous to the incurring of such indebtedness}{\insrsid15601110\charrsid9977416 . . . .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (quoting Article 13, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 1 of the Indiana Constitution) (partial emphasis added).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Notwithstanding such omission in Section 11, we conclude that the value of property must necessarily be based on the tax roll in effect at the time the debt is incurred.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Debt limits are generally calculated based on the value of property listed at the time the governmental debt is incurred.}{\i\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 State v. Spring City}{\insrsid15601110\charrsid9977416 , 260 P.2d at 527, 529 (Utah 1953) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 It is true that the validity of an indebtedness should be determined as of the time when it is incurred. . . . If, therefore, the bonds in question were valid when issued, they do not become invalid because of the fact that the defendant Spring City ended the year 1948 with a deficit.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, it is at that time that the debt limit should be determined.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [31]}{\insrsid15601110\charrsid9977416 \tab Under Guam law, the tax assessor is required to make a new tax list each year.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Title 11 GCA }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24305 (1996) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Annually, on o r before the first day of September, the assessor shall ascertain all the taxable property in Guam and shall assess it to the persons owning or claiming it on the first Monday in March of that year at the value as determined in accordance with }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ); Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24320 (1996) (}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 The assessor shall prepare an assessment roll in wh ich shall be listed all property which it is the duty of the assessor, to assess.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The annual tax roll is to be certified by the Secretary of the Board of Equalization by October 31st of each year.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See}{\insrsid15601110\charrsid9977416 Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24518 (1996).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 These annual lists contain the property valuations for property on Guam.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See}{\insrsid15601110\charrsid9977416 Decl. of Artemio B. Ilagan, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 19-23 (July 7, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Exempt property is also noted on the annual roll.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See}{\insrsid15601110\charrsid9977416 Decl. of Artemio B. Ilagan, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 19-23 (July 7, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, the most recent tax roll, which contains the most recent tax valuations, should be used to determine the government}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s debt limit.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [32]}{\insrsid15601110\charrsid9977416 \tab Therefore, in determining the government}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s current debt limit, we use the appraised valuations of property as certified in the 2002 tax roll.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 In so doing, we reject the AG}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s contention that the 2002 tax list cannot be relied upon because it was computed in violation of 11 GCA }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306, which provides that property on Guam be revalued every three years.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 As emphasized by the AG, the last triennial valuation required under 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 24306 was conducted in 1993, and became effective in 1995.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The AG argues that because a valuation has not been conducted since then, and because there is evi dence that the property values on Guam have severely depreciated since that time, the 2002 tax list cannot be relied upon in determining the government}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s current debt limit.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 We disagree.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [33]}{\insrsid15601110\charrsid9977416 \tab Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306 as it existed prior to amendment by P.L. 27-21, (hereinafter }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 11 GCA }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306 (1996)}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ), provided in relevant part:}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 Commencing with the first Monday in March of 1978 and continuing every three (3) years thereafter the assessor shall reascertain the value of all property in Guam and such valuation shall be used as the basis for assessm ent during the annual adjustments for property which has been either improved or suffered loss, as provided by }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 24307. \par }\pard \qj \li0\ri1440\nowidctlpar\faauto\rin1440\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 24306 (1996).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Under 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 24307, the tax valuations for the years intervening the triennial valuations are to be based on the last triennial valuation as updated pursuant to section 24307.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Specifically, section 24307 requires the tax assessor to ascertain the value of all property which has become taxable since the last valuation, such as new improvements to real property, or has changed in value due to a change in use, destruction, or other loss.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24307 (1996). \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [34]}{\insrsid15601110\charrsid9977416 \tab On June 25, 2003, P.L. 27-21 was enacted, which amended 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 24306 to provide that if the tax assessor fails to conduct the triennial valuations of property in Guam as required under that section, then the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 last}{\insrsid15601110\charrsid9977416 }{\i\insrsid15601110\charrsid9977416 completed}{\insrsid15601110\charrsid9977416 valuation as supplemented by the annual adjustments provided for in }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24307 shall be the property tax valuation used under this Chapter.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Guam Pub. L. 27-21, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1 (June 25, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Essentially, P.L. 27-21 identifies the manner in which the annual assessments are to be generated if the required triennial valuation is not conducted.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [35]}{\insrsid15601110\charrsid9977416 \tab Notwithstanding the recent amendment to section 24306, for purposes of determining the debt limit we are constrained to determining the s ufficiency of the 2002 list with regard to the law at the time the list was certified.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The amendment to section 24306 pursuant to P.L. 27-21 is not relevant here because it was not in effect at the time the 2002 tax roll was certified.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The procedure for establishing annual tax valuations announced in section 24306 }{\i\insrsid15601110\charrsid9977416 as amended}{\insrsid15601110\charrsid9977416 cannot work to retroactively affect the valuations contained in the 2002 tax roll.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [36]}{\insrsid15601110\charrsid9977416 \tab At the outset, we agree with the AG that the fact that the Organic Act does not include a requi rement that tax valuations be conducted at a particular frequency indicates that the Congress gave the legislature the authority to determine the frequency of valuations for assessment purposes.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The legislature}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s intent as to when tax valuations were to be conducted was evident at the time the 2002 tax roll was certified.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Specifically, the legislature required, by statute, that property valuations be conducted every three years.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306 (1996).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [37]}{\insrsid15601110\charrsid9977416 \tab However, we do not find that the failure to undertake the triennial valuation required by 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306 (1996) rendered the 2002 tax roll, and the valuations contained therein, invalid for purposes of ascertaining the debt limit.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 The reason is evident in the statutory language.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306 (1996) specifically provides that the triennial valuations }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 shall be used as the basis for }{\i\insrsid15601110\charrsid9977416 assessment}{\insrsid15601110\charrsid9977416 . . . .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24306 (1996).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, while the fact that the required triennial valuations were not conducted may affect the validity or accuracy of individual }{\i\insrsid15601110\charrsid9977416 tax}{ \insrsid15601110\charrsid9977416 }{\i\insrsid15601110\charrsid9977416 assessments}{\insrsid15601110\charrsid9977416 , an issue we do not decide here, these triennial valuations are simply not required for purposes of determining the debt limit.}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 With regard to the debt limit, we have already stated that the calculation is to be based on the most recent tax valuation as certified by the responsible government officer at}{\insrsid9977416 the time the\~debt is incurred.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [38]}{\insrsid15601110\charrsid9977416 \tab We further emphasize that it is unnecessary to address the AG}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 s contention that the 2002 tax list cannot be used for taxation purposes because of the alleged decline in values of property on Guam.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Such an inquiry concerning the accuracy of the tax list is more relevant in a case brought for the purposes of challenging the propriety of tax assessments, and in any event, necessarily requires the benefit of the fact-finding process and the mechanisms available in such proceedings.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 For purposes here, where the question is whether the 2002 ta x list can be relied upon in calculating the debt limit, all that is required is a determination of whether the 2002 tax list was developed in accordance with the sufficient procedures provided under the law.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 To the extent that sufficient procedures existed to ensure a fair and reasonable valuation, we are satisfied that the current tax list may be used to calculate the debt limit.}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 This is not to foreclose the AG from challenging, in accordance with Guam law, the preparation of the 2002 tax roll list.}{\f41\insrsid15601110 }}}{\insrsid15601110\charrsid9977416 \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [39]}{\insrsid15601110\charrsid9977416 \tab A particular method of property tax valuation must be sustained unless the assessor}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s actions are }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 discriminatory or so unreasonable that property is substantially overvalued and thus injustice and illegality result . . . .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Uniroyal, Inc. v. Board of Tax Review}{\insrsid15601110\charrsid9977416 , 438 A.2d 782, 789 n.8 (Conn. 1981).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The test for unreasonableness must be judged in the first instance by reference to the limits on the taxing power set forth under applicable law.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [40]}{\insrsid15601110\charrsid9977416 \tab The only limit to the legislature}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 s taxing power in the Organic Act is the requirement in Section 11 that taxes be }{\i\insrsid15601110\charrsid9977416 uniform}{\insrsid15601110\charrsid9977416 .}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 48 U.S.C.A. }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1423a. (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Taxes and assessments on property . . . may be imposed for the purposes of the government of Guam }{\i\insrsid15601110\charrsid9977416 as may be uniformly provided}{ \insrsid15601110\charrsid9977416 by the Legislature of Guam.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 The fact that the 2002 tax roll was based on a 1993 appraisal does not appear to violate the requirement of uniformity in the Organic Act, nor does it render the valuations in the 2002 l ist unacceptably discriminatory or unreasonable.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 In fact, other courts have found tax valuations spanning this length of time to be acceptable.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 }{\i\insrsid15601110\charrsid9977416 Uniroyal, Inc.}{\insrsid15601110\charrsid9977416 , 438 A.2d at 787 (confirming the legislature}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s authority to determine that tax assessment valuations be conducted every ten years) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 The remedy of revaluation was established by the legislature and it was the judgment of the legislature that the remedy need only be available once each decade.}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ); }{\i\insrsid15601110\charrsid9977416 cf. Allen}{\insrsid15601110\charrsid9977416 , 184 N.E.2d at 27 (quoting an Indiana statute, Chapter 316 of the Acts of 1959, as providing for the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 reassessment, for taxation purposes, of all real estate and improvements made thereon in 1961 and }{\i\insrsid15601110\charrsid9977416 every eight years thereafter}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [41]}{\insrsid15601110\charrsid9977416 \tab Moreover, there are mechanisms which exist in the statutory scheme to ensure the fairness of the valuations in the 2002 list.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 Under 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24307, the assessor is required to update the tax roll annually with information regarding new properties and the destruction of old properties.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24307 (requiring the tax assessor, during the years between the triennial assessment, to }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ascertain the value of all property . . . which shall h ave become taxable since the last valuation, including new improvements or additions to old improvements . . . and in the case of destruction or injury . . . the value of which shall have been included in the former valuation of the property, the assessor shall determine the value of such loss and reduce the valuation accordingly.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 Furthermore, property owners who claim a reduction in valuation based on the change in use of their property, or because of destruc tion or injury to the property, are required to file a report with the tax assessor by March 1st of the year in which the reduction is sought.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24310 (1996).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Similarly, with regard to reduction in appraisal values due to market forces, the law provides a mechanism to challenge an annual assessment.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24509 (1996) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 [A]ny person assessed, or his agent, may file with the Board [of Equalization] on or before September 15 [until October 15], a written application for equalization of his assessment or correction of the roll.}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ), }{\i\insrsid15601110\charrsid9977416 and }{\insrsid15601110\charrsid9977416 Title 11 }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24511 (1996) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 The Board, }{\i\insrsid15601110\charrsid9977416 upon a showing of unreasonableness}{\insrsid15601110\charrsid9977416 , may increase or reduce any assessment . . . throughout Guam.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (emphasis added).}{\insrsid9977416 } {\insrsid15601110\charrsid9977416 Thus, the law provides mechanisms to protect taxpayers from being taxed on an inaccurate assessment.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 A failure to file a report with the tax assessor claiming a devaluation based on change in use or destruction or injury to property results in the waiver of }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 of any right to such reduction in the valuation.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24310.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Similarly, a failure to file an application for equalization on or before October 15 for the alteration of the roll of any year bars a claim for alteration of the roll for that year. Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 24510 (1996).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, the law forces property owners to chall enge the last tax list and the valuations contained therein.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Presumably, taxpayers act in accordance with their rights and with the interest in not being subjected to higher taxes.}{ \cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 In fact, there have been many appeals made to the Board of Equalization. We do note that there are over approximately 300 pending assessment appeals currently before the Board, several of which represent appeals by condominium or multi-family residences. }{\i\f41\fs20\insrsid15601110 See }{ \f41\fs20\insrsid15601110 Decl. of Artemio B. Ilagan, }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 18 (July 7, 2003). These represent the appeals outstanding since 2000. This is indeed problematic to us. However, we do not find this detrimental to the analysis herein because of the representation that the Governor has app ointed members to the Board who are awaiting confirmation. We can only presume that the Board members, when appointed, will act expeditiously in carrying out their duties as set forth under the law. We also find that most of the outstanding appeals were filed in 2001 and 2002, thus the backlog is for recent years. To the extent there becomes a backlog for a significant number of years, then we may have a clearer case that the valuation system is failing. Moreover, until those appeals are concluded, th e presumption is that the assessments are correct. }{\i\f41\fs20\insrsid15601110 See FMC Corp. (Peroxygen Chems. Div.) v. Unmack}{\f41\fs20\insrsid15601110 , 677 N.Y.S.2d 269, 272 (N.Y. 1998)}{\i\f41\fs20\insrsid15601110 }{\f41\fs20\insrsid15601110 (}{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 Our analysis begins with the recognition that a property valuation by the tax assessor is presumptively valid . . . . }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 ). Additionally, the numbers of appeals are not high in relation to the total number of land and building parcels on Guam, which, according to the record, exceeded 50,000.}{\f41\insrsid15601110 }}}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 Because the tax lists are composed of property valuations which reflect values based on the last assessment in light of taxpayer challenges to property values, the valuations contained in the 2002 tax roll possess an indicia of reliability.}{ \insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [42]}{\insrsid15601110\charrsid9977416 \tab From our record, it appears that adequate procedures existed for arriving at the valuations in the 2002 tax roll.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Furthermore, property owners have not been unduly deprived of their statutory rights to challenge assessments.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, we find that the 20 02 tax roll was the product of a fair and reasonable valuation system.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Accordingly, the 2002 tax list may be relied upon to determine the current debt limit under Section 11.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [43]}{\insrsid15601110\charrsid9977416 \tab Although this is not a contested suit in the traditional s ense, we adopt the standard for such cases that the burden to show that a tax valuation system and the methodology employed therein is unreasonable rests with the person challenging them.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See}{ \insrsid15601110\charrsid9977416 Title 11 GCA }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 2451 1 (1996) (providing that the Board of Equalization may increase or reduce an assessment }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 upon a showing of unreasonableness}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ); }{\i\insrsid15601110\charrsid9977416 Uniroyal, Inc.}{ \insrsid15601110\charrsid9977416 , 438 A.2d at 789 n.8.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Here, the AG has not shown that the statutory procedures governing the establishment of the 2002 tax roll are inadequate for purposes of arriving at the current valuation.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Accordingly, and in light of the fact that the 2002 tax list has not been invalidated by a court of competent jurisdiction in the appropriate case, we conclude that the 2002 list may be considered in calculating the government}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s current debt limit.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [44]}{\insrsid15601110\charrsid9977416 \tab According to the documents in the record, the appraised values of the real property on Guam and structures thereon as certified on the 2002 tax roll is $11.333 billion.}{ \insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 Decl. of Artemio B. Ilagan, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 22 (July 7, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Approximately $183.7 million of the total represents exempt property.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Decl. of Artemio B. Ilagan, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 23 (July 7, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, the appraised value of non-exempt property is $11.1493 billion.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 In accordance with the 2002 list, the government}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s debt limit, calculated at 10% of the appraised value, is $1.11493 billion.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\pard \qj \fi720\li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 5.}{\b\insrsid9977416 }{\b\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\b\insrsid15601110\charrsid9977416 Indebtedness}{\b\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [45]}{\insrsid15601110\charrsid9977416 \tab The final issue before the court is whether the issuance of the bonds authorized under P.L. 27-19 would violate the Organic Act in light of our interpretation of Section 11.} {\insrsid9977416 }{\insrsid15601110\charrsid9977416 In calculating the debt limit pursuant to a constitutional debt-limitation statute, the court must: (1) determine the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 aggregate tax value of property in Guam;}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 (2) calculate the amount which is 10% of that amount; (3) determine the outstanding }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 public indebtedness;}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 and (4) determine whether the indebtedness contemplated under P.L. 27-19, when added to the outstanding }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 public indebtedness,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 would exceed the 10% figure.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See Miller v. City of Glenwood}{\insrsid15601110\charrsid9977416 , 176 N.W. 373, 376 (Iowa 1920) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}} {\insrsid15601110\charrsid9977416 An observance of . . . [the constitutional debt-limit] provision involves: First, an inspection of the tax list to ascertain the amount of taxable property in value in the city; and, second, avoidance of debt beyond the limit of 5 per cent. of such value.}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Having discussed the first two issues relevant to the calculation, the remaining issues relate to the outstanding public indebtedness, and the indebtedness which may be created upon the issuance of the bonds.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [46]}{\insrsid15601110\charrsid9977416 \tab Section 11 imposes a limit on }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 public indebtedness.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 48 U.S.C.A. }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1423a.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, in determining the amount of current governmental debt, we must interpret the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 indebtedness.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 \par \par }{\b\insrsid15601110\charrsid9977416 [47]}{\insrsid15601110\charrsid9977416 \tab Courts agree that the terms }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 and }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 indebtedness}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 in the constitutional sense are not technical terms; but rather, should be viewed }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 in their broad, general meaning, of all contractual obligations to pay in the future for considerations received in the present.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Keller}{\insrsid15601110\charrsid9977416 , 49 A. at 782; }{\i\insrsid15601110\charrsid9977416 see also City of Hartford}{\insrsid15601110\charrsid9977416 , 493 N.W.2d at 51 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [T]here is nothing technical about the meaning of debt in its constitutional sense.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ); }{ \i\insrsid15601110\charrsid9977416 Knowlton v. Ripley County Mem}{\i\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 l Hosp.}{ \insrsid15601110\charrsid9977416 , 743 S.W.2d 132, 136 (Mo. Ct. App. 1988) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 A debt is understood to mean an unconditional promise to pay a fixed sum at some specified time, and is quite different from a contract to be performed in the future, d epending upon a condition precedent, which may never be performed, and which cannot ripen into a debt until performed.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 ) (citation omitted).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Similarly, debt, in a constitutional sense, has been characterized as an obligation in which the debtor is obliged to pay and the creditor has a right to receive and enforce payment.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 City of Hartford}{\insrsid15601110\charrsid9977416 , 493 N.W.2d at 51 n.12; }{ \i\insrsid15601110\charrsid9977416 State ex rel. Capitol Addition Bldg. Comm}{\i\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 n v. Connelly}{ \insrsid15601110\charrsid9977416 , 46 P.2d 1097, 1100 (N.M. 1935) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 The idea of a }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in the constitutional sense is that an obligation has arisen out of co ntract, express or implied, which entitles the creditor unconditionally to receive from the debtor a sum of money, which the debtor is under a legal, equitable, or moral duty to pay without regard to any future contingency.}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (citation omitted).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Furthermore, debt only arises out of an obligation to pay money from funds to be provided in the future, as distinguished from funds presently on hand.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See City of Hartford}{ \insrsid15601110\charrsid9977416 , 493 N.W.2d at 51; }{\i\insrsid15601110\charrsid9977416 see also Hodges v. Crowley}{\insrsid15601110\charrsid9977416 , 57 N.E. 889, 892 (Ill. 1900)}{\i\insrsid15601110\charrsid9977416 }{\insrsid15601110\charrsid9977416 (finding that debt in the constitutional sense is something payable in the future because an obligation payable out of present funds is characterized as }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 one thing simply given and accepted in exchange for another}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 ) (citation omitted).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Another recognized proposition is that constitutional debt limitations }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 comprehend[ ] a debt pledging for its repa yment the general faith and credit of the state or municipality . . . and contemplating the levy of a general property tax as the source of funds with which to retire the same.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 State ex rel. Capitol Addition Bldg. Comm}{\i\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 n}{\insrsid15601110\charrsid9977416 , 46 P.2d at 1101.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Finally, to constitute debt, the obligation }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 must be an absolute undertaking; if the municipality may avoid its obligation or if there remain conditions precedent to it, there is no indebtedness.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 City of Hartford}{\insrsid15601110\charrsid9977416 , 493 N.W.2d at 51 n.13 (citation omitted).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 executory and contingent contracts which are to be performed }{\i\insrsid15601110\charrsid9977416 in futuro}{ \insrsid15601110\charrsid9977416 do not constitute an indebtedness against the municipal or quasi municipal corporation, in the sense of the constitutional inhibition, until such contracts have been performed.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 Because contingent obligations are not }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 debt}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 in the constitutional sense, the so-called }{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 unfunded liability}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 obligations of the Retirement Fund are not }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 debt.}{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 This liability is contingent in nature. }}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Knowlton}{ \insrsid15601110\charrsid9977416 , 743 S.W.2d at 137 (recognizing that installment lease with the option for annual renewal were not debts) (citation omitted).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [48]}{\insrsid15601110\charrsid9977416 \tab As shown above, courts scrutinize the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in constitutional debt-limitation provisions with regard to both the nature of the obligation itself and the source of payment securing the obligation.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 From these principl es, courts have recognized various types of obligations which are not included in the definition of }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Section 11 specifically excludes certain obligations from t he debt calculation.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Section 11 provides that }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [b]onds or other obligations of the government of Guam payable solely from revenues derived from any public improvement or undertaking shall not be considered public indebtedness of Guam within the meaning of this subsection.}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 48 U.S.C.A. 1423a.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 We do not believe that the exclusion in Section 11 precludes us from otherwise interpreting the term }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 indebtedness}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 as used in Section 11.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The most that can be said is that Congress intended that there be no question that certain obligations are not to be included in determining the amount of public indebtedness for debt-limitation purposes.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 Accordingly, we will interpret }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 indebtedness}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in Section 11 with reference to the definition of }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 which necessarily encompasses exclusions, recognized by other courts.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [49]}{\insrsid15601110\charrsid9977416 \tab Whether certain governmental obligations constitute debts in the constitutional sense, and are thus to be included in the debt limit calculation, is a highly litigated issue. }{\insrsid9977416 }{\insrsid15601110\charrsid9977416 For purposes here, we will contain the analysis to the outstanding obligations evidenced in the record.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The following is a list of outstanding obligations of the government of Guam as of December 31, 2002, set forth in the Declaration of Edward Untalan, the Finance and Economic Director of the Guam Economic Deve}{\insrsid9977416 lopment and Commerce Authority:}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\trowd \irow0\irowband0\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 1. Note to Farmers Home Administration (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 Superior Court Note}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) secured by the Judicial Building Center and court fees\cell }\pard \qj \li0\ri0\nowidctlpar\intbl\tqr\tx2124\faauto\rin0\lin0\pararsid9977416 {\insrsid9977416 }{\insrsid15601110\charrsid9977416 $ \tab 6,678,135\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow0\irowband0\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 2. Government of Guam General Obligation Bonds, 1993 Series A secured by the Full Faith and Credit of the Government of Guam\cell }\pard \qj \li0\ri0\nowidctlpar\intbl\tqr\tx2124\faauto\rin0\lin0\pararsid9977416 {\insrsid9977416 }{ \insrsid15601110\charrsid9977416 $\tab 135,235,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow1\irowband1 \ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 3. Government of Guam General Obligation Bonds, 1995 Series A secured by the Full Faith and Credit of the Government of Guam\cell }\pard \qj \li0\ri0\nowidctlpar\intbl\tqr\tx2124\faauto\rin0\lin0\pararsid9977416 {\insrsid9977416 }{\insrsid15601110\charrsid9977416 $\tab 50,020,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 { \insrsid15601110\charrsid9977416 \trowd \irow2\irowband2\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr \brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 4. Government of Guam $10 million loan as per P.L. 26-84 secured by the pledge of Federal Government Section 30 monies and the Full Faith and Credit of the Government of Guam\cell }\pard \qj \li0\ri0\nowidctlpar\intbl \tqr\tx2124\faauto\rin0\lin0\pararsid9977416 {\insrsid9977416 }{\insrsid15601110\charrsid9977416 $\tab 10,000,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow3\irowband3\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 5. Government of Guam Limited Obligation Infrastructure Improvement Bonds, 1997 Series A, secured by Hotel Taxes\cell }\pard \qj \li0\ri0\nowidctlpar\intbl\tqr\tx2124\faauto\rin0\lin0\pararsid9977416 {\insrsid9977416 }{\insrsid15601110\charrsid9977416 $\tab 64,195,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 { \insrsid15601110\charrsid9977416 \trowd \irow4\irowband4\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr \brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 6. Government of Guam Limited Obligation Highway Refunding Bonds, 2001 Series A, secured by Liquid Fuel Taxes, Vehicle Registration and License Fees, etc. \cell }\pard \qj \li0\ri0\nowidctlpar\intbl\tqr\tx2124\faauto\rin0\lin0\pararsid9977416 { \insrsid9977416 }{\insrsid15601110\charrsid9977416 $\tab 47,875,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow5\irowband5 \ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 7. GEDA Tobacco Settlement Asset-Backed Bonds, Series 2001A, secured by Tobacco Settlement Receipts\cell }\pard \qj \li0\ri0\nowidctlpar\intbl \tqr\tx2124\faauto\rin0\lin0\pararsid9977416 {\insrsid9977416 }{\insrsid15601110\charrsid9977416 $\tab 10,702,980.10\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow6\irowband6\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 8. GEDA Tobacco Settlement Asset-Backed Bonds, Series 2001B, secured by Tobacco Settlement Receipts\cell }\pard \qj \li0\ri0\nowidctlpar\intbl \tqr\tx2124\faauto\rin0\lin0\pararsid9977416 {\insrsid9977416 }{\insrsid15601110\charrsid9977416 $\tab 13,494,478.85\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow7\irowband7\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 9. Government of Guam Limited Obligation (Series 30) Bonds, \par Series 2001A, secured by the pledge of Federal Government Section 30 monies and the Full Faith and Credit of the Government of Guam \cell }\pard \qj \li0\ri0\nowidctlpar\intbl\tqr\tx2124\faauto\rin0\lin0\pararsid9977416 {\insrsid9977416 }{ \insrsid15601110\charrsid9977416 $\tab 70,675,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow8\irowband8 \ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 10. Revenue Bonds secured by the revenues generated by a government agency or instrumentality}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 This Item represents 13 separate bond issuances with outstanding amounts due. All of these bonds are payable directly from the revenues of the government entity. }}}{\insrsid15601110\charrsid9977416 \cell }\pard \qj \li0\ri0\nowidctlpar\intbl \tqr\tx2124\faauto\rin0\lin0\pararsid9977416 {\insrsid9977416 }{\insrsid15601110\charrsid9977416 $\tab 774,360,656\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow9\irowband9\lastrow \ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7020\clshdrawnil \cellx7020\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth2340\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\insrsid15601110\charrsid9977416 \par }{\i\insrsid15601110\charrsid9977416 See}{\insrsid15601110\charrsid9977416 Decl. of Edward Untalan, Exhibit A (July 7, 2003). \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [50]}{\insrsid15601110\charrsid9977416 \tab The total amount of these debts rounded upwards to the nearest dollar amounts to $1,183,236,250.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Of that amount, the Revenue Bonds (Item 10) are not considered }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 because they are fully payable and secured only by the revenue generated from public improvements or undertakings.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{\insrsid15601110\charrsid9977416 48 U.S.C.A. }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 1423a (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Bonds or other obligations of the government of Guam payable solely from revenues derived from any public improvement or undertaking shall not be considered public indebte dness of Guam within the meaning of this subsection.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 ).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [51]}{\insrsid15601110\charrsid9977416 \tab Similarly, the Superior Court Note (Item 1), which is secured by court fees and a mortgage on the judicial center building, is similarly not }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 because the obligation is secured by a pledge of the fees payable to the court which are revenues from a public undertaking.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id}{ \insrsid15601110\charrsid9977416 .}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Additionally, the fact that the building is used to secure the note does not render the note a debt because there is no pledge of the general revenue for its payment.} {\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See Lerch v. Md. Port Auth.}{\insrsid15601110\charrsid9977416 , 214 A.2d 761, 772 (Md. 1965).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 In }{\i\insrsid15601110\charrsid9977416 Lerch v. Maryland Port Authority}{\insrsid15601110\charrsid9977416 , the court recognized the majority view that }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 the acquisition of property by a municipality under an agreement whereby the cost thereof is to be paid out of the revenue from the property itself does not give rise to a debt . . . within the meaning of a constitutional or statutory limitation of indebtedness, although the property so acquired is encumbered by a mortgage or lien to secure the payment of the cost thereof, where the encumbrance does not attach to any other property o f the municipality . . . .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 . (citation omitted).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Although the court there considered a debt-limitation provision significantly different from ours, we agree with the rationale that the pledge of a structure t o secure the payment of bonds or other obligation issued to finance its construction is not }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 because }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 the municipality can walk away from the obligation none the poorer.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 From the point of view of assets and revenues available for expenditure it is in the same position after entering into these obligations as it was before.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 . at 774 (citation omitted) (distinguishing obligations secured by previously existing property from obligations secured by property which is to be constructed with the bond proceeds, the latter of which is not }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 ); }{\i\insrsid15601110\charrsid9977416 City of Hartford}{\insrsid15601110\charrsid9977416 , 493 N.W.2d at 52 (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 According to the pre-existing asset doctrine, an obligation is not debt in the constitutional sense if it is neither 1) a g eneral obligation of the municipality entitling the creditor to look to the municipality}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s revenue for repayment nor 2) secured by any asset owned by the municipality }{\i\insrsid15601110\charrsid9977416 prior to its incurring the obligation}{\insrsid15601110\charrsid9977416 .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (emphasis added).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [52]}{\insrsid15601110\charrsid9977416 \tab Furthermore, the bonds secured by the tobacco settlement money (Items 7 and 8) are not considered }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debts}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 because they are secured by a }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 special fund}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 which is not funded by revenue derived from taxation, and the obligation does not now, or cannot in the future, burden the general fund.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Bd. of State Harbor Comm}{\i\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 rs v. Dean}{ \insrsid15601110\charrsid9977416 , 258 P.2d 590, 592 (Cal. Dist. Ct. App. 1953).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 [A] limitation upon municipal indebtedness is not violated by an obligation which is payable out of a special fund, if the municipality is not liable to pay the same out of its general funds should the special fund prove to be insufficient, }{ \i\insrsid15601110\charrsid9977416 and the transaction by which the indebtedness is incurred cannot in any event deplete the resources of the municipality}{\insrsid15601110\charrsid9977416 .}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 . (emphasis added) (citation omitted).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [53]}{\insrsid15601110\charrsid9977416 \tab We do find, however, that the bonds secured by other taxes such as hotel tax and fuel tax (Items 5 and 6), which are part of the general fund, constitute }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debts}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 for purposes of the debt-limitation provision.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 These bonds are not secured by }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 the revenues derived from a public improvement or undertaking}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 and thus do fall within the obligations excluded from }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 indebtedness}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in Section 11.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 Furthermore, these bonds do not fall within the special fund doctrine.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 We agree with the jurisdictions which hold that }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 an obligation to be funded from general tax revenues, whether they be }{\i\insrsid15601110\charrsid9977416 ad valorem}{ \insrsid15601110\charrsid9977416 or excise taxes, is a }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 within the meaning of the debt-limitation provision.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 State ex rel. Lesmeister v. Olson}{\insrsid15601110\charrsid9977416 , 354 N.W.2d 690, 697 (N.D. 1984).}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 By accepting the argument that }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 a pledge of any specific tax revenues would be sufficient to invoke the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 special fund}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 doctrine, the constitutional debt limitation would be largely nullified, since the legislature could exempt almost any obligation from its strictures merely by identifying a specific tax from which the obligation could be paid.}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 . at 698 (citation omitted).}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Under this contention the Legislature . . . could divide the public revenue into numerous subdivisions, calling one the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 road fund,}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 another the }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 school fund,}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 . . . and others almost without limit.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Debts could then be contracted in unlimited amounts and payable in the far distant future, and still be immune from attack as violating constitutional provisions limiting indebtedness . . . .}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 A mere statement of the proposition carries with it, it seems to us, its own refutation.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{ \i\insrsid15601110\charrsid9977416 Id}{\insrsid15601110\charrsid9977416 . (citation omitted).}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 We note that the court in }{\i\f41\fs20\insrsid15601110 Olson}{\f41\fs20\insrsid15601110 discussed the meaning of }{ \f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 debt}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}} {\f41\fs20\insrsid15601110 under a significantly different debt-limitation provision, however, again, we find that court}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{ \f41\fs20\insrsid15601110 s logic to be compelling for application with regard to the limit contained in Section 11.}}}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [54]}{\insrsid15601110\charrsid9977416 \tab All other items listed above pledge the full faith and credit of the government, and are thus }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debts}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 in the constitutional sense and are to be added to the overall government indebtedness.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 State ex rel. Capitol Addition Bldg. Comm}{\i\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\i\insrsid15601110\charrsid9977416 n}{\insrsid15601110\charrsid9977416 , 46 P.2d at 1101 (debt is an obligation }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 pledging for its repayment the general faith and credit of the state or municipality . . . and contemplating the levy of a general property tax as the source of funds with which to retire the same.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ).}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [55]}{\insrsid15601110\charrsid9977416 \tab The Governor also admits that in addition to the bond obligations listed above, there is currently an estimated deficit of $10,642,709.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 The Governor argues that these amounts are not debts under Section 11 because they are obligations made in anticipation of revenues for the fiscal year.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 We agree.}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 Obligations which are part of current expenses, and are expected to be paid from current revenues, are not debt.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See City of Waycross v. Tomberlin}{ \insrsid15601110\charrsid9977416 , 91 S.E. 560, 561 (Ga. 1917); }{\i\insrsid15601110\charrsid9977416 Wilkes County v. Mayor and Council of Washington}{\insrsid15601110\charrsid9977416 , 145 S.E. 47, 53 (Ga. 1928) (}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 Before a liability for a legitimate current expense can be incurred by a municipality without creating a debt . . . there must, at the time of incurring the liabili ty, be a sufficient sum in the treasury which can be lawfully used to pay the liability incurred, or there must be authority and ability to raise a sufficient sum to discharge the liability by taxation during the current year . . . .}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 ) (citation omitted).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 The current obligations identified are not }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debts}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 because they are not payable in the future from taxes to be collected beyond the fiscal year.}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [56]}{\insrsid15601110\charrsid9977416 \tab In his Opening Brief, the AG identifies several other obligations, not treated above, which he believes should be included in the calculation of the current outstanding debt. }{\insrsid9977416 }{\insrsid15601110\charrsid9977416 These include:}{\insrsid15601110 \par }{\insrsid9977416\charrsid9977416 \par }\trowd \irow0\irowband0\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7830\clshdrawnil \cellx7830\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth1530\clshdrawnil \cellx9360\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 1. Utility Payments to GPA\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\tqr\tx1314\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 $\tab 30,400,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow0\irowband0\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt \brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7830\clshdrawnil \cellx7830\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb \brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth1530\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 2. Payments to the Retirement Fund \cell }\pard \ql \li0\ri0\nowidctlpar\intbl\tqr\tx1314\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 $\tab 25,300,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 { \insrsid15601110\charrsid9977416 \trowd \irow1\irowband1\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr \brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7830\clshdrawnil \cellx7830\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth1530\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 3. Vendor Payables\cell }\pard \ql \li0\ri0\nowidctlpar\intbl \tqr\tx1314\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 $\tab 5,300,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow2\irowband2 \ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7830\clshdrawnil \cellx7830\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth1530\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 4. Withholding Tax Payments from 2002\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\tqr\tx1314\faauto\rin0\lin0\pararsid9977416 { \insrsid15601110\charrsid9977416 $\tab 15,400,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow3\irowband3 \ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7830\clshdrawnil \cellx7830\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth1530\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 5. Past Due Income Tax Refunds\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\tqr\tx1314\faauto\rin0\lin0\pararsid9977416 { \insrsid15601110\charrsid9977416 $\tab 139,200,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow4\irowband4 \ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7830\clshdrawnil \cellx7830\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth1530\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 6. Past Due Obligations for the current year\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\tqr\tx1314\faauto\rin0\lin0\pararsid9977416 { \insrsid15601110\charrsid9977416 $\tab 80,000,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow5\irowband5 \ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7830\clshdrawnil \cellx7830\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth1530\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 7. Receivables through May 30, 2003 due to the Gov}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 t of Guam Retirement Fund\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\tqr\tx1314\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 $\tab 130,500,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow6\irowband6\ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7830\clshdrawnil \cellx7830\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth1530\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 8. Department of Education Debt \cell }\pard \ql \li0\ri0\nowidctlpar\intbl\tqr\tx1314\faauto\rin0\lin0\pararsid9977416 {\insrsid15601110\charrsid9977416 $\tab 21,000,000\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid15601110\charrsid9977416 \trowd \irow7\irowband7\lastrow \ts11\trgaph108\trleft0\trftsWidth1\trpaddl108\trpaddr108\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth7830\clshdrawnil \cellx7830\clvertalt\clbrdrt\brdrs\brdrw15\brdrcf8 \clbrdrl\brdrs\brdrw15\brdrcf8 \clbrdrb\brdrs\brdrw15\brdrcf8 \clbrdrr\brdrs\brdrw15\brdrcf8 \cltxlrtb\clftsWidth3\clwWidth1530\clshdrawnil \cellx9360\row }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [57]}{\insrsid15601110\charrsid9977416 \tab We do not find that any of these items are }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{ \insrsid15601110\charrsid9977416 debt}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 under Section 11.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 These items appear to have been incurred with the purpose of payment out of revenues for the years that they were incurred.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, at the time they were incurred they were current obligations, and they have not changed in form merely because they were not paid as contemplated during the fiscal years in which they became due. \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [58]}{\insrsid15601110\charrsid9977416 \tab Accordingly, in light of the foregoing, the total amount of }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f36\fs24}}}{\insrsid15601110\charrsid9977416 public indebtedness}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 is $378,000,000.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 As stated earlier, according to the 2002 tax list, the appraised value of the real property on Guam and structures thereon is $11.333 billion.}{\insrsid9977416 }{\i\insrsid15601110\charrsid9977416 See }{ \insrsid15601110\charrsid9977416 Decl. of Artemio B. Ilagan, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 22 (July 7, 2003).}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 Approximately $183.7 million of the total represents exempt property.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Decl. of Artemio B. Ilagan, }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 23 (July 7, 2003).}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Thus, the appraised value of non-exempt property is $11.1493 billion, rendering the government}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s debt limit, calculated at 10% of the appraised value, to be $1.11493 billion. \par }{\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [59]}{\insrsid15601110\charrsid9977416 \tab The final remaining issue is whether the issuance of the bonds as authorized by P.L. 27-19 will cause the government to exceed the debt limit.}{\insrsid9977416 }{ \insrsid15601110\charrsid9977416 We find that it would not.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Even assuming the total amount of bonds authorized (totaling $418,309,857) are is sued, and assuming that all bonds issued under P.L. 27-19 are considered }{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 new}{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 debt to be added to the government}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s current indebtedness of $378,000,000, the debt limit of $1.11493 billion would not be exceeded.}{\cs15\super\insrsid15601110\charrsid9977416 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\f41\super\insrsid15601110 \chftn }{\f41\fs20\insrsid15601110 It is worthy of mention that the bonds under P.L. 27-19 which may be used to fund an escrow to pay debt service on the 1993 Series A bonds are not }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f36\fs20}}}{\f41\fs20\insrsid15601110 debt.}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 }{\i\f41\fs20\insrsid15601110 See Keeney v. Kanawha County Court}{ \f41\fs20\insrsid15601110 , 175 S.E. 60, 61 (W. Va. 1934). }{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 [T]here is . . . overwhelming authority to the effect that the issuance of refunding bonds is not the creation of a new debt, but is simply a change in the form of the old and in the evidence representing it.}{\f41\fs20\insrsid15601110 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\f41\fs20\insrsid15601110 }{\i\f41\fs20\insrsid15601110 Id}{\f41\fs20\insrsid15601110 .}{\f41\insrsid15601110 \par }}}{\insrsid15601110\charrsid9977416 \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid15601110\charrsid9977416 IV. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9977416 {\b\insrsid9977416 \par }{\b\insrsid15601110\charrsid9977416 [60]\tab }{\insrsid15601110\charrsid9977416 Section 11}{\b\insrsid15601110\charrsid9977416 }{\insrsid15601110\charrsid9977416 of the Organic Act limits the public indebtedness of Guam to 10% of the }{ \insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 aggregate tax valuation of the property on Guam.}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 This debt limit is to be calculated on the appraised value of the real or personal property currently subject to taxation.}{ \insrsid9977416 }{\insrsid15601110\charrsid9977416 The appraised values of such property should be taken from the tax roll in effect at the time the debt is incurred.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 We find that the 2002 tax list is appropriate for use in calculating the government}{\insrsid15601110\charrsid9977416 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid15601110\charrsid9977416 s current debt limit notwithstanding that the last valuation of the property on Guam was conducted in 1993.}{\insrsid9977416 }{\insrsid15601110\charrsid9977416 Based on the valuations provided in the 2002 tax lis t, and considering the current outstanding debt of the government of Guam, the issuance of bonds authorized under P.L. 27-19 would not violate Section 11 of the Organic Act.}{\insrsid9977416 \par }}