Maui County plans $300 million GO bond sale in August 2025; officials say credit ratings appear stable

Maui County officials told the Budget, Finance & Economic Development Committee they intend to competitively issue $300 million in general obligation bonds in August 2025, with estimated proceeds of about $320 million. The county expects to use proceeds to reimburse prior expenditures and fund capital improvement projects.

Deputy Director of Finance Maria Zelensky and the county’s municipal advisor, Kurt de Krinas of Columbia Capital Management LLC, described the plan and key assumptions to the committee. Managing Director (name given in the record as Nishita) and CIP coordinator Dan Shupak also participated in the discussion. Officials said they were preparing a preliminary official statement and engaging the three major rating agencies.

Zelensky said the county plans a delivery around Aug. 13, 2025, with proceeds assumed at $320 million because the issue may sell at a premium. Of that amount, roughly $114.7 million would reimburse the county for previously expended capital costs; about $205.3 million would fund additional CIP, including an estimated $60.4 million of fiscal‑year 2026 projects that county staff judged likely to be performed. The bonds are expected to be 20‑year maturities with a final maturity on Sept. 1, 2045, and the county expects to structure principal retirements so about half the par is paid down in the first 10 years.

Municipal advisor Kurt de Krinas estimated a true interest cost in the current market of about 3.9% to 4.1%, subject to market conditions at pricing. Zelensky said the county had met with the three rating agencies in June; she expected a preliminary Standard & Poor’s rating as early as the next day and final ratings from the agencies by July 11. The administration proposed a competitive sale rather than a negotiated underwriting, citing transparency and GFOA guidance for plain‑vanilla GO transactions when market conditions and ratings are favorable.

Committee members asked how Bill 9 (a local policy change under council consideration) and other local projects might affect ratings. Officials said rating agencies had discussed Bill 9 and understood potential revenue impacts. Agencies were not alarmed, officials said, noting county flexibility to set property tax rates, projected rebuilding activity in Lahaina that should strengthen property assessments over time, and existing budgetary offsets and program expenditures. County staff cited estimates discussed with agencies that roughly $75 million might be the potential revenue exposure under certain scenarios, and that offsets—existing affordable housing funds, $20 million in wildfire tax relief and $14–$15 million in exemptions supporting long‑term rental programs—could materially offset that exposure.

Officials said they had screened CIP projects for near‑term deliverability and assigned likelihood ratings; projects judged most likely to proceed were included in the preliminary spending schedule. The committee asked for a clearer, larger CIP spreadsheet for future briefings; staff agreed to resend legible materials.

The committee took public testimony during the bond discussion, received one comment unrelated to the bonds, and deferred formal action on the bond plan pending further committee review and improved documentation.