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William P. Kenoi �o� ). 7• 7 . Nancy E. Crawford <br /> Mayor ,� � �J�d�, Director <br /> y �' \ n. r '� I Deanna S. Sako <br /> Deputy Director <br /> ' � *e of N► <br /> County of Hawaii <br /> Finance Department <br /> 25 Aupuni Street, Room 2103 • Hilo, Hawai`i 96720 <br /> (808) 961 -8234 • Fax (808) 961 -8569 <br /> August 2, 2010 <br /> The Honorable J Yoshimoto <br /> And Members of the Council <br /> G <br /> County of Hawai`i <br /> 25 Aupuni Street rr <br /> Hilo, HI 96720 <br /> Dear Chairman Yoshimoto and Members of the Council: <br /> M <br /> RE: COUNTY OF HAWAII, HAWAII — <br /> GENERAL OBLIGATIONS BONDS <br /> 2010 SERIES A AND SERIES B, TOTALING $60,000,000 <br /> Pursuant to the authority granted by County Council Ordinance Nos. 04 -59, 07 -120, 08 -106, 08 -148, 09- <br /> 153, as amended, and Resolution No. 341 -10, I have proceeded with the sale and issuance of $60,000,000 <br /> County of Hawai`i, Hawai`i, General Obligation Bonds, 2010 Series A and Series B (hereafter referred to <br /> as the " Bonds ") and wish to submit the following report. <br /> 1. A Bond Purchase Agreement was entered into on July 13, 2010 with Merrill, Lynch, Pierce, Fenner & <br /> Smith Incorporated (the "underwriter ") for the sale of the Bonds. The Bond Purchase Agreement <br /> obligated the underwriter to make a bonafide offering of the Bonds to the public. The Bonds were <br /> sold with the Bonds amortizing on a level annual debt service basis, with the first principal amount <br /> maturing in 2015 and the last principal amount maturing in 2030. The true interest cost of the Bonds <br /> was computed to be 3.47 %. <br /> 2. The Series A Bonds were sold as tax - exempt bonds. The County's entire allocation of Recovery Zone <br /> Economic Development Bonds (RZEDBs) in the amount of $24,675,000 comprised the taxable Series <br /> B bonds. 45% of the interest costs of RZEDBs are subsidized by the federal government. <br /> 3. The Department of Water Supply received 25% or $15,000,000 of the bond proceeds. <br /> 4. The Bonds received a rating of "Aa2" from Moody's Investors Service, and "AA -" from both <br /> Standard & Poor's Ratings Services and Fitch Ratings. No bond insurance was purchased to enhance <br /> the rating. <br /> 5. Brian Hirai from the law firm of McCorriston, Mukai, Miller & MacKinnon LLP served as bond <br /> Counsel. Gary Kitahata was hired as a financial advisor. <br /> 6. The Bonds were purchased and delivered on July 28, 2010. <br /> Copia W ff/ <br /> Ref. Ta Ft _ <br /> Hawai'i County is an Equal Opportunity Provider and Employer Ref DA- AUG 5 2010 <br />