HomeMy WebLinkAboutCOM 0173.000 2006-2008 ~~v w Nor
Harry Kim ~,c~ ~ I~
. William Takaba
Mayor ~ Director
• Nancy E. Crawford
i~•. • ~ Deputy Director
County of Hawai i
Finance Department '
Mailing AddreSS: 25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
Office Located aC 891 Ululani Sheet • Hilo, Hawai' i 96720
(808) 961-8234 • Faz (808) 961-6248
February 8, 2007
G
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The Honorable Pete Hoffinann
And Members of the Council C~ cri
County of Hawaii ~ " ~ cc
333 Kilauea Avenue, Second Floor
Hilo, HI 96720 _ ~
4J
Dear Chairman Hoffmann and Members of the Council: -
c~a
RE: COUNTY OF HAWAII, HAWAII
GENERAL OBLIGATION BONDS
2007 SERIES A, B, AND C, TOTALING $122,360,000
Pursuant to authority granted by County Council Ordinance Nos. 06-165, 04-81, and 04-59, I
have proceeded with the sale and issuance of $122,360,000 County of Hawaii, Hawaii, General
Obligation Bonds, 2007 Series A, B, and C (hereafter referred to as the "Bonds") and wish to
submit the following report.
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 January 11, 2007 with A.G. Edwards &
Sons, Inc. for the sale of the Bonds. The Bond Purchase Agreement obligated A.G. Edwards
& 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 2008 and the last principal amount maturing in 2027. The true interest
rate of the Bonds was computed to be 4.17%.
2. The refunding of the 1999 Series A and 2001 Series A bonds by the 2007 Series B and C
bonds, respectively, resulted in a net present value savings of $2,240,925.
3. Ambac Assurance Corporation has issued a policy insuring the scheduled payments of the
principal and interest of the Bonds. Based on such insurance, the Bonds have been rated
"AAA" by Standard & Poor's Rating Services, "Aaa" by Moody's Investors Services, and
"AAA" by Fitch Ratings.
Comm. hio, 173
Ref. To: L
Ref. Uata EB 0 2007
Hawaii County is an equal opportunity provider and employer.
The Honorable Pete Hoffmann
And Members of the Council
Page 2
February 8, 2007
4. Brian Hirai from the law firm of McCorriston, Mukai, Miller & MacKinnon LLP served as
bond counsel.
5. The Bank of New York Trust Company, N.A. was appointed to serve as registrar, paying
agent, and escrow agent. A full book-entry system was established for the Bonds.
6. The Bonds were purchased and delivered on January 30, 2007.
If there are any questions, please do not hesitate to call.
Sincerely,
l~n~~p
William "Fakaba
Director of Finance
APPROVED:
~ i
i
,f•- Harry Kim
U Mayor