Maui is dipping back into the public bond market for the first time in three years. A whopping $301.8 million in General Obligation bonds are being prepped for a public sale next Wednesday to finance a handful of key projects across the county. The sale, slated for 11:30 a.m. Eastern Daylight Time via the Bidcomp/Parity electronic system, is a sign of confidence by county officials in their fiscal health and the prospects of snaring investment at favorable rates.
As reported by The Maui News, Marcy Martin, the County Finance Director, claimed Maui's "strong bond ratings reflect Maui’s resiliency, liquidity and strong financial management." The decision to return to competitive sale practice, not utilized since a negotiated sale in 2022, hinges on the belief that it will serve the best interest of both the county and its taxpayers. Martin's comments underscore a strategic shift meant to capitalize on the County's Aa2/AA+/AA+ ratings from Moody's, S & P Global, and Fitch.
This isn't the first rodeo for Maui County in the competitive sale arena; they've reaped purported benefits from this approach in 2012, 2014, 2015, and 2018. A multitude of projects are slated to receive funding from the proceeds, including cultural and infrastructural upgrades such as the Hālau of ʻŌiwi Art cultural center in Wailuku, Waiʻale Road extension and Lahaina wastewater system enhancements.
The County’s municipal advisor, Curt de Crinis of Columbia Capital, hinted at the significant potential for investors in a statement to The Maui News. "The GO Bonds continue to carry Maui’s very high ratings," he asserted, signaling a vote of confidence from the top financial echelons. The competitive bidding process will ultimately award the bonds to the underwriting firm or firms that put forth the lowest true interest cost come bid day.
For the residents and investors keeping an eye on Maui's financial maneuvers, a Notice of Intent to Sell has gone out, signaling the county's readiness to move forward with its plan.
