HomeMy WebLinkAboutCOM 0037.029 2002-2004 ~~v w
Harry Kim ~''•'~C ~`!o William Takaba
MnYOr Direelor
• Nancy E. Crawford
Depury DirecJOr
,•ti'oi'M~
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo, Hawaii 9672U
(808) 961-8234 • fax (808) 961-R248 -
April 16, 2003
The Honorable James Y. Arakaki
And Members of the Council
County of Hawaii
25 Aupuni Street
Hilo, HI 96720
Dear Chairman Arakaki and Members of the Council:
RE: COUNTY OF HAWAII, HAWAII
GENERAL OBLIGATION BONDS
2003 SERIES A, $36,310,000
Pursuant to authority granted by County Council Ordinance No. 03-49, I have proceeded with
the sale and issuance of $36,310,000 County of Hawaii, Hawaii General Obligation Bonds, 2003
Series A, and wish to submit the following report on the sale and issuance of the Bonds.
1. After analysis of the relative merits of selling the Bonds at a competitive or a negotiated
sale, a Bond Purchase Agreement was entered into on April 1, 2003 with A.G. Edward &
Sons, Inc. for the sale of the Bonds. The Bond Purchase Agreement obligated A.G.
Edward & Sons, Inc. 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 in 2006 and the last principal amount maturing in 2023. The
true interest rate on the Bonds was computed to be 4.25%, which is the rate obtained by
doubling the semiannual interest rate, compounded semiannually, necessary to discount
the principal and interest rate on the Bonds from the respective dates of payment to the
delivery date of the Bonds and the sale price of the Bonds.
2. Financial Security Assurance Inc. has issued a policy insuring the scheduled payments of
the principal of and interest on the Bonds. Based on such insurance, the Bonds have been
rated "AAA" by Standard & Poors' Corporation and "Aaa" by Moody's Investors
Services.
Comm. No.3~
Ref. To:
Ref. Date, aPR ~ ~ ~nn~
The Honorable James Y. Arakaki
And Members of the Council
Page 2
April 16, 2003
3. Bank of Hawaii in Honolulu, Hawaii, was appointed to serve as Registrar and Paying
Agent for the Bonds. A full book-entry system was established for the Bonds.
4. The Bonds were delivered and the purchase price paid for on Apri] 16, 2003.
If there are any questions, please do not hesitate to call.
William Tak ba
Director of Finance
APPROVED:
~IVV~'
Harry Kim
Mayor