HomeMy WebLinkAboutCOM 0027.000 2012-2014 William P. Kenoi � I`\�yj-;� Nancy DE eCrrawford
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Deanna S. Sako
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County of Hawaii
Finance Department
25 Aupuni Street, Suite 2103 • Hilo,Hawaii 96720
(808)961-8234 • Fax(808)961-8569
December 4, 2012
J Yoshimoto, Council Chair and -
Members of the Hawai`i County Council
Hawai`i County Council -'
25 Aupuni Street
Hilo, Hawai`i 96720
Re: Bill for an Ordinance authorizing the Issuance of General Obligation Refunding Bonds
Attached for your consideration is a bill for an ordinance authorizing the issuance of general
obligation refunding bonds, not to exceed $60,000,000.00 for the purpose of refinancing outstanding
County debt in the form of bonds that were issued and loans that were acquired at higher interest
rates.
Interest savings due to refinancing are expected to be noteworthy. As an example, the 2003 Series A
bond issue is expected to save an estimated average of$300,000 per year for the next twelve years.
In total, we expect to save approximately $7.6 million in cash flow savings. Refinancing candidates
being considered include the 2003 and 2004 bond issues, a housing loan, an improvement district
project, and several state revolving fund loans for wastewater projects.
In order to meet our scheduled bond sale date and take advantage of anticipated favorable sales
conditions in January 2013, we are requesting that this bill be waived from the Finance Committee
and be placed on the December 19, 2012 Council agenda.
If you have any questions, please feel free to contact Mike Okumoto at 933-6240, or me at 961-8234.
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Nancy awford
Director of Finance
APPROVED
William P. Kenoi
Mayor
Enc. Comm: N�o 7
Ref. To.
3•It 1O> Ref. Date
Hawaii County is an Equal Opportunity Provider and Employer
Form #: B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Finance DATE: December 4, 2012
STAFF CONTACT: Mike Okumoto PHONE: 933-6240
A. REQUEST:
Council approval is requested for a refunding bond ordinance. The refunding bond ordinance authorizes
refinancing of existing County debt to take advantage of today's lower interest rates. The ordinance has a
not-to-exceed amount of$60 million which would be the maximum amount that would be refinanced.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
Interest rates are at historic lows. The Finance Department has examined the County's existing debt and
has listed bond and loan refinancing candidates in the refunding bond ordinance. Interest savings will be
substantial. For instance, refunding the 2003 Series A bond issue will save an estimated $3.4 million in present
value savings or an average of about $300,000 per year for the next 12 years. Refinancing candidates include
the 2003 and 2004 bond issues, a housing loan, an improvement district project, and several state revolving
fund loans for wastewater projects.
SIGNED: DATE: / /30 //R
Department ead
VALERIE POINDEXTER 4oJM - "'ti;�. KAREN EOFF
Chairperson : - -^ Vu;e BRENDA FORD
p DRU KANUHA
GREGGOR ILAGAN _= ' ZENDO KERN
Vice Chair ±i41 4.0-/ DENNIS"FRESH"ONISHI
` "" MARGARET WILLE
J YOSHIMOTO
HAWAI`I COUNTY COUNCIL
County of Hawai`i
Hawai`i County Building
25 Aupuni Street
Hilo, Hawaii 96720
December 6, 2012
J Yoshimoto, Chairperson
Hawai`i County Council
25 Aupuni Street
Hilo, Hawai`i 96720
RE: Bill No. 10 : Bill for an Ordinance authorizing the Issuance of General
Obligation Refunding Bonds.
Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of
Hawai`i, this written request is submitted with my approval that the above-referenced matter be
waived from the Committee on Finance to the full Council for immediate action. In reviewing
this matter, timely approval is crucial. It is therefore advantageous that approval is granted and
the matter be placed onto the next Council agenda for review. However, in the event this request
is denied, for whatever reason, I understand the matter shall be referred to the Committee on
Finance for placement on its future agenda.
Sincerely,
Valerie Poindexter, Chair
Committee on Finance
Approved/Date/Waive to Council: Disapproved/Date/Refer to FC:
J Yos o o, Chairperson J Yoshimoto, Chairperson
Hawai`i County Council Hawai`i County Council
Hawai`i County is an Equal Opportunity Provider and Employer