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HomeMy WebLinkAboutCOM 0418.014 2000-2002 J~`Y;.~ y~lg. Harry Kim William Takaba ,~~Jr~ Mayor ~ ~=~t,_ Director r; ;t ~...1 - , 4d,_ i .,;¢4_ .f~J.=,: `Nancy E. Crawford SP~~'1 ®i N8'~'`` ~t~ ~ ~~~t( ~Deputy Drrector County of f-iavvac~u~,, ~ -;~.;;~~t:1~1 Finance Depart>rnnent 25 Aupuni Street, Room 118 • Hilo, Hawaii 96720 (808)961-8234 • Fax (808)961-8248 December 3, 2001 Honorable James Arakaki, Chairperson and Members of the County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Special Assessment Refunding Bonds Enclosed is Draft 3 in Ramseyer format of Bill 131, providing for the issuance of County of Hawaii Improvement District No. 17, Kaloko Subdivision, 2001 Special Assessment Refunding Bonds in an amount not to exceed $10,165,000. An explanation of the changes to the ordinance is attached to this memo. Bill 131 is on the agenda for the Wednesday, December 5, 2001 Council Meeting, for second reading. If there are any questions, please do not hesitate to call me. '`William Takaba Director of Finance APPROVED: Harry Kim Mayor Enc. ,~r/1 /a, 3 / ~ /t~l Ivy ~°ii~ tVa Ref. 7~~. t~~C ~ ~ I~ALOI~O REFUNDING Explanation of Bond Opdinance Iaevisions The revisions to the Bond Ordinance are in Sections 2.02(b)(ii) 3.01, 3.06(b) and Exhibit A as follows: Section 2.02(b)(ii) Section 2.02(b)(ii) is revised to correct the provision for the deposit of funds to pay issuance costs. The deposit will be made (from bond proceeds or other funds on hand in the Improvement District accounts) into the Cost of Issuance Fund to conform to other provisions (specifically in Section 4.05) regarding issuance costs. Section 3.01 Section 3.01 is revised to increase the minimum denomination of the bonds from $5,000 to $100,000. In contrast to the County's general obligation bonds, special assessment bonds are more appropriate for investment by the types of investors (primarily institutional purchasers) who are familiar with this class of bonds and can evaluate them properly. Increasing the minimum denomination to $100,000 gives the County greater assurance that the bonds will be held by appropriate types of investors. An exception to the $100,000 minimum is provided to allow bond redemptions to be made properly under Section 3.06(b). Section 3.06(b) Section 3.06(b) is revised to permit the County to redeem bonds below the minimum denomination of $100,000 to the extent necessary. This is provided because the bonds will be subject to partial redemptions from time to time and, as these partial redemptions occur, the County may need to reduce the principal of at least some bonds below $100,000. Exhibit A Exhibit A is revised to update the information regarding the owners of the parcels identified as Asst. Nos. 16-26 and 41, which were sold after first reading, and to correct the information regarding the owners of the parcels identified as Asst. Nos. 33 (typographical error) and 50 (omission of owner's name noted at first reading and typographical error in TMK). Exhibit A is also revised to clarify that the amounts shown do not reflect any prepayments of assessments which may be made after December 1, 2001.