2005 CAFR Part 2 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2005 The bonds refunded bore interest at rates ranging from 4.70%to 5.20%. The par amount of $19,545,000 plus a premium of $1,418,651 and a payment of$102,114 from the debt service fund,minus$173,736 in underwriting fees,insurance,and other issuance costs resulted in net proceeds of $20,892,029. The net proceeds were used to purchase U.S.government securities,which were deposited in an irrevocable trust administered by an escrow agent and provided full payment on the outstanding 1996 Series A refunded bonds on February 1,2006. The bonds were considered defeased and are not included in the government-wide statement of net assets. The County's total debt service requirements over the next twelve years will decrease by $1,417,104 as a result of the refunding,and the net economic gain(difference between the present values on the old and new debt)after taking into account all allocable costs of issuance of the bonds was$826,306. 2004 Series C Also in fiscal year 20.05,the County issued$5,050,140 in refunding bonds as the 2004 Series C general obligation bond issue. The refunding bonds have a true interest cost of 3.37%and were issued to current refund the 1977 Series A and 1997 Series A issues for a total of$3,619,000 and advance refund the$1,677,700 outstanding balance of the 2001 Series A Public Improvement Bonds. The bonds refunded bore interest at rates ranging from 4.85%to 5.00%. The net proceeds of $4,992,673 were used to purchase U.S.government securities. Those securities were deposited in an irrevocable trust administered by an escrow agent and provided payoffs on the 1977 Series A and 1997 Series A bonds on October 12,2004 and will provide full payment on the outstanding 2001 Series A Public;Improvements bonds on August 1,2006.The bonds were considered defeased and are nct included in the government-wide statement of net assets. The County's total debt service requirements over the next eleven years will decrease by $891,837 as a result of the refunding„and the net present value savings was$380,218. As of June 30,2005,bonds outstanding considered defeased amounted to$22,303,705. Bond Premiums During the year,a bond premium of$1,606,219 was received from the 2004 Series A general obligation bonds. At June 30,2005,total unamortized bond premiums were$2,481,728 which is being amortized over the remaining life of the respective bond issues. - 67-