HomeMy WebLinkAboutCOM 0025.000 2020-2022Harry Kim
Mayor
County of Hawaii
Finance Department
Deanna S. Sako
Director
Steven A. Hunt
Deputy Director
25 Aupuni Street, Room 2103 • Hilo, Hawaii 96720
(808) 961-8234 • Fax (808) 961-8569
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November 13, 2020 .�
Aaron Chung, Council Chair and°
Members of the Hawaii County Council.
Hawaii County Council
25 Aupuni Street
Hilo, HI 96720
Dear Chairman Chung and Members of the Council:
RE: COUNTY OF HAWAII, HAWAII
GENERAL OBLIGATION BONDS
2020 SERIES A. B, C, AND D TOTALING $77,135,000
Pursuant to the authority granted by County Council Ordinance Nos. 04-59, as amended, 07-120,
as amended, 08-106, as amended, 08-148, as amended, 11-40, as amended, 12-77, 12-150, 12-
1639 13-23, 14-115 15-18, 15-68, 15-1215 16-66, 18-06, 18-51, 18-60, 20-27 and 20-68, I have
proceeded with the sale and issuance of $77,135,000 County of Hawaii, Hawaii, General
Obligation Bonds, 2020 Series A, B, C, and D (hereafter referred to as the "Bonds") and wish to
submit the following report.
1. A Bond Purchase Agreement was entered into on October 15, 2020 with BofA Securities, Inc.
(the "underwriter") for the sale of the Bonds. The Bond Purchase Agreement obligated the
underwriter to make a bonafide offering of the Bonds to the public. The Bonds were sold
with the Bonds amortizing on a level annual debt service basis, with the first principal amount
maturing on March 1, 2021 and the last principal amount maturing in 2040. The combined
all -in true interest cost of the Bonds was computed to be 2.19%.
2. The $59,815,000 Series A bonds were issued to generate new money proceeds that were used
to retire _$30 million in bond anticipation notes and to finance various capital improvement
projects. The all -in true interest cost (TIC) for Series A (tax exempt, new money series) was
2.32%.
3. The $2,315 million Series B taxable bonds will be used to finance various capital
improvement projects. Series C and Series D bonds were used to refund $17.615 million of
the 2010 Series B bonds. The refunding of these bonds resulted in a net present value savings
of $2.0 million or 11.6% of the par amount.
Comm. No. 2,5
Ref. To:' "C„
INE o to .C n 2020 .
'Hawai'i County is an Equal Opportunity Provider and Employer
Aaron Chung, Council Chair and
Members of the Hawaii County Council
Page 2
November 5, 2020
4. The Bonds received a rating of "AA" with a stable outlook from S&P Global Ratings Inc.,
"Aa2" with a stable outlook from Moody's Investors Service, and "AA+" with a negative
outlook from Fitch Ratings.
5. The bonds were underwritten by BofA Securities, Inc. Brian Hirai from the law firm of
McCorriston Miller Mukai & MacKinnon LLP served as bond counsel. Fieldman Rolapp,
Associates served as municipal pricing advisor. U.S. Bank National Association was selected
to serve as paying agent for the Bonds. A full book -entry system was established for the
Bonds.
6. The Bonds were purchased and delivered on November 4, 2020.
Please do not hesitate to call me should you have any questions.
Sincerely,
Deanna S. Sako
Director of Finance