HomeMy WebLinkAboutCOM 0912.000 2008-2010 William P. Kenoi �o� ). 7• 7 . Nancy E. Crawford
Mayor ,� � �J�d�, Director
y �' \ n. r '� I Deanna S. Sako
Deputy Director
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County of Hawaii
Finance Department
25 Aupuni Street, Room 2103 • Hilo, Hawai`i 96720
(808) 961 -8234 • Fax (808) 961 -8569
August 2, 2010
The Honorable J Yoshimoto
And Members of the Council
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County of Hawai`i
25 Aupuni Street rr
Hilo, HI 96720
Dear Chairman Yoshimoto and Members of the Council:
M
RE: COUNTY OF HAWAII, HAWAII —
GENERAL OBLIGATIONS BONDS
2010 SERIES A AND SERIES B, TOTALING $60,000,000
Pursuant to the authority granted by County Council Ordinance Nos. 04 -59, 07 -120, 08 -106, 08 -148, 09-
153, as amended, and Resolution No. 341 -10, I have proceeded with the sale and issuance of $60,000,000
County of Hawai`i, Hawai`i, General Obligation Bonds, 2010 Series A and Series B (hereafter referred to
as the " Bonds ") and wish to submit the following report.
1. A Bond Purchase Agreement was entered into on July 13, 2010 with Merrill, Lynch, Pierce, Fenner &
Smith Incorporated (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 in 2015 and the last principal amount maturing in 2030. The true interest cost of the Bonds
was computed to be 3.47 %.
2. The Series A Bonds were sold as tax - exempt bonds. The County's entire allocation of Recovery Zone
Economic Development Bonds (RZEDBs) in the amount of $24,675,000 comprised the taxable Series
B bonds. 45% of the interest costs of RZEDBs are subsidized by the federal government.
3. The Department of Water Supply received 25% or $15,000,000 of the bond proceeds.
4. The Bonds received a rating of "Aa2" from Moody's Investors Service, and "AA -" from both
Standard & Poor's Ratings Services and Fitch Ratings. No bond insurance was purchased to enhance
the rating.
5. Brian Hirai from the law firm of McCorriston, Mukai, Miller & MacKinnon LLP served as bond
Counsel. Gary Kitahata was hired as a financial advisor.
6. The Bonds were purchased and delivered on July 28, 2010.
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Ref. Ta Ft _
Hawai'i County is an Equal Opportunity Provider and Employer Ref DA- AUG 5 2010
The Honorable J Yoshimoto
And Members of the Council
Page 2
August 2, 2010
If there are any questions, please do not hesitate to call.
Sincerely,
41^-(1 F
Nancy E. Crawford
Director of Finance
APPROVED:
William P. Kenoi
Mayor