HomeMy WebLinkAboutCOM 0760.000 2002-2004
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Harry Kim C a William Takaba
Mayor Director
Nancy E. Crawford
• Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
(808)961-8234 Faz(808)961-8248
September 13, 2004
Honorable James Y. Arakaki, Chairman
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
2004 SERIES A, B, and C, $55,020,000
Pursuant to authority granted by County Council Ordinances No. 04-59 and No. 04-81, I have
proceeded with the sale and issuance of $55,020,000 County of Hawaii, Hawaii General
Obligation Bonds, 2004 Series A, B, and C 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 August 17, 2004 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 2005 and the last principal amount maturing in 2025. The
true interest rate on the Bonds was computed to be 4.06%, 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. MBIA Insurance Corporation 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. The underlying rating by Moody's has been upgraded to Al.
Comm. No- -7W
Ref. To: ^I
Hawaii County is an equal opportunity provider and employer. Rcf. • ,`,?qt'
Honorable James Y. Arakaki
And Members of the Council
Page 2
September 13, 2004
3. Bank of New York in San Francisco, California, 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 September 8, 2004.
If there are any questions, please do not hesitate to call.
William Takaba
Director of Finance
APPROVED:
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Harry Kim
Mayor