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Media Release

Hilton Head Island Successfully Issues Bonds

Release Date: September 21, 2017

Contact Information:
Stephen G. Riley, C.M. , Town Manager, 843-341-4700

The Town of Hilton Head Island issued $27.5 million General Obligation (GO) Bonds on September 21, 2017 to fund the current year's capital plan. On the same day, the Town also issued $18 million in GO bonds to restore reserves used to fund the Town’s expected share of Hurricane Matthew response costs. The new bonds were issued in conjunction with $28.5 million Tax Increment Financing special revenue bonds and $30.1 million Beach Preservation fee bonds issued since the start of the fiscal year. These were the financings planned and approved by Town Council with the passage of the 2017-18 budget.

Town Manager Stephen G. Riley stated, "The Town was able to lock-in advantageous rates that should serve the Town well for many years. The favorable ratings’ reports were integral in driving demand for the bonds. This is further affirmation by the financial markets of the steps Town Council has taken to help restore the Island and restore reserves. We are pleased with the results." The rates were as follows:

GO Capital Plan bonds 3.11%
GO Reserve bonds 2.03%
Beach Preservation fee bonds 2.06%
Tax Increment bonds 1.78%

The GO bonds will be used to fund the capital plan including the Island Recreation Center and expansion in sewer service availability. The TIF bonds will be used primarily for the USCB campus on Hilton Head Island and Coligny/Pope Initiative Area improvements. The Beach bonds are backed specifically by Beach Preservation Fees, and will be used to re-pay the 2016 Bond Anticipation Note and fund beach renourishment projects this year.

Recently, the Town underwent a rigorous bond ratings process; all three municipal bond rating agencies affirmed the Town's strong GO ratings citing strong financial practices leading to ample financial reserves and high liquidity as well as a very strong economy.  The Town’s history of financial responsibility was central to the strong ratings.

Moody's Aaa
Fitch AA+
Standard & Poor’s Aa+

If you would like additional information about the Town's bond profile, ratings, and debt management policies, you may read more in the Town's Comprehensive Annual Financial Report (CAFR) or its Budget document on the Town's website at www.hiltonheadislandsc.gov.