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. .
<br /> S face: $15,770
<br /> Vnamployment 'late, 199:: q,08
<br /> State, 199 L: 2.s5
<br /> 1/92: 5.98
<br /> 1/93: 7.68
<br /> F.V. per Capita, 1993: 570,659
<br /> Average Annual Growth A.V.,
<br /> 1988-93: 15.08
<br /> Tan Largest taxpayers as 8 of
<br /> A.V. 1992: 19.38
<br /> Moody's Aatir.gs,
<br /> Hawaii County, General Obligation,
<br /> Fublic ZmF~zovement Bends,
<br /> dated 12/:./82, MBIA Corp.: Aaa
<br /> Bonds dated 12/1/84, MBIA Corp.: Aaa
<br /> Bonds dat~:d 6/1/89, MBIA Corp.: Aaa
<br /> Series 19~J9 A, dated 12/1/89, MBIA Corp.: Aaa
<br /> Series 19139 B, dated 11/1/89, MBIA Ccrp.: Aaa
<br /> Series 1930 A, FGIC: Aaa
<br /> (1]Moody's msdians £or counties with populations of 100,000 to 249,999.
<br /> AF7ALYSIS
<br /> The recent rapid and continuing tax base and economic growth, together with
<br /> satisfactory finances and reserves, continue to support the R rating on the
<br /> county's general obligations bonds. However, taxpayer resistance to rapidly
<br /> growing property ta:ces, the relatively high level of debt and the narrowly
<br /> based econort.y, dependent on agriculture and tourism, both of which are
<br /> undergoing Various strains, are areas of potential concern.
<br /> The largest and southernmost of Hawaii's seven inhabited islands, Hawaii
<br /> County is a).so known as the "Hiq island." encompassing two-thirds of the
<br /> state's total land area, but only about 113 cf the population. The county
<br /> continues to experience rapid development. Construction of resort and hotel
<br /> properties, especially high-quality hotels on the western side of the island,
<br /> has contributed to a doubling of assessed valuation during the past five
<br /> years. Whi1~3 this tax base growth has allowed the county to maintain
<br /> relatively Stable property tax rates, tax levies have grown rapidly, prompting
<br /> a high level of assessment appeals and discussion of tax limitation measures.
<br /> While tax collections do not appear to have suffered yet, appeals for next
<br /> year's tax Levy represent 7.e8 of the total tax base, compared to 3.08 this
<br /> year. This trend, and particularly the county's response to the trend, will
<br /> continue to be monitored.
<br /> The rapid property tax revenue growth has supported satisfactory financial
<br /> operations, with property taxes representing more Chan 698 of all operating
<br /> revenues. Zntergovernmental aid, principally the county's share of the
<br /> transient accommodations tax collected state-vide, is the second largest
<br /> source of revenues. The state retains 58 of the tax tollected and distributes
<br /> the balance to the counties. The county receives 18.68. While this source of
<br /> revenue ha: continued to grow, this source could be wlnerabla to state
<br /> attempts to retain a higher percentage of such revenues. While population
<br /> growth has prompted growing demands for public services, the limited number of
<br /> services provided by counties in Hawaii has also protected the county from
<br /> expenditure growth. Many major governmental functions - some of which are
<br /> especially wlnezable to economic pressures - such as health, welfare and
<br /> judicial f~.utecions, as well as education, axe the responsibility of the state.
<br />
<br /> As a resul':, public safety represents the largest portion of expenditures.
<br /> The rapid assessed valuation growth has also had a favorable impact on debt
<br /> burden whi :h, due to the high level of the tax base comprised of hotel, resort
<br />
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