COM 0636.004 1996-1998 - Laserfiche WebLink

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r., , and oth?r concnerci al development has been keel under 2?. while this level cf debt appears moderate relative to national norms, this figure is somewhat _ecetiti!-e. In light cf the rurw er of services and capital needs funded by the scats, ro tai=l/ in T.?alth, educattor. and ~~stice which represent such a high .suet of debt herder. elseuF.ere in `he nation, debt levels in the county and tk:e rest of tze state, are actually relatively high. Per capita debt is about double the norm for comparably-sized counties. ,agr-icultUte contl•^.uzs to represent an important segment of the county's economy, with ough the decline of *_he sugar industry gad the emergence of other types cf agriculture has had a sicnificant impact on county employment. Once the largest croducer of raw sugar ir- Hawaii, the county now lags behind Maui c:.;:nLy i zas~ sugar production. Current raw sugar production is approximately '!9*, cf the peak level 20 years ago. Last July plans were announced to close one cf the counties three remainino sugar plantations within two years and in 'u;vst a s=c.~nd filed for Chapter 11 bankruptcy protection. The product of thi; evoluti~m of the county's agricultural business, has been relatively high une::pleymenC, tk:a highest poverty levels in the state and the lowest per capita and £.;mily income levels. Cattle ranching and the harvesting of macadamia nu~:s, papaya and coffe_ are other principal agricultural industries. 2;.e county's narrowly based economy is also heavily dependent on tourism, and is - like ea :h of Hawaii's counties - thus somewhat susceptible to external events. A 29-day Vnited Airlines strike in 1985 reportedly caused the 8.98 decline xn t.ze island's visitor eraffic that year. Similarly, the national recession - especially in California - together with the airlines' reduced supply of Fia:raii-bound seats, and the 1992 airfare discounts which applied to fares nation-wide, but not tc flights to Hawaii, have each reportedly contributed to the declines in 1991 and 1992 visitor counts. Together with the continued growth of hotel room inventory, these factors have contributed to !ewer hotel occupancy levels. The damage caused to Kauai County by Hurricane iniki, has resulted in some diversion of tourists. On the other hand, *_he future for the county's tourism appears promising, with the development of new, high qt alicy r¢90rt9 and hotels like the Ritz Carlton and Four Seasons, which is unc,er const ruction. ~Developaent of the Kona-Keahole airport, rncludirg runway oxpansion to acco[omodate wide-body jets, offers the potential for future direct Plights from Japan, which could radically transform the county's tottrisra industry. This update was completed in conjunction with the sale of SB6, 585,000 of general obl:.gation bonds, which are expected to be insured by FGIC and rated P.a a. The bonds are expected to be sold through negotiation on May 6, 1993 with Dean Wittez Reynolds. The current issue, combining refunding and new money proceeds, will fund $30 million of assorCed capital improvement program needs as well as the refunding of outstanding 1980 A, 1986 A, 1989 A and 1990 A genezal obligation bonds. The County's capital program consists principally of waste water and solid waste needs. The county has also used the state revolving fund to fund waste water improvements. RATING HISTORY October 1990: A June 1938: Aa January 19;18: Aaa ANALYST Nikolai J. Sklaroff {915) 279-L741 3298P01 Copyright 1997 Moody's Ittveetors Service