Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
COM 0636.004 1996-1998
c°•' ~ DONALD IKEDA .~1~~~'• ALAN S. KONISHI County Cferk ~ OrpuN County Clerk 11 .e.~! CONSTANCE R. KIRIU OFFICE OF `rHE COU)~(`I"Y CLERK LrQUlative dudiPor County of Haunii Huunn County BuiUing 2S Aupum $trtt[ Hib. Hawaii 96720 r, February 5, 1998 TO: Council Members FROM: Leslie Chow, FiscaUProgram Review Auditor~t RE: Bill No. 180, Draft 2 A Bill for an Ordinance Authorizing the Issuance of $40 Million Dollars in General Obligation Bonds During its January 6, 1998 meeting, the County Council's Finance Committee requested the Legislative Auditor's Office to compile and provide it with basic background information on general obligation (G.O.) bonds and, in particular, the collateral issues associated with the $40 million G.O. bond proposed by the Administration. The following information is submitted to the Council in response to this request. A. General Background I. What is a General Obligation Bond? • "The term `general obligation bonds' means all bonds for the payment of the principal and interest of which the full faith and credit of the State or a political subdivision are pledged...." Section 12, article VII, Hawaii State Constitution • "For the payment of the principal and interest, the governing body shall levy ad valorem taxes without limitation as to rate or amount on all the real property subject to taxation by the county." Section 47-I2, HRS • "The interest and principal payments of bonds issued under this chapter shall be a first charge on the general fund of the county issuing same, and sufficient revenues shall be raised or provided from time to time by the county for the purpose of that payment." Section 47-13, HRS ~~.11a ~ 3 6.0 `f mta na.~ND KQ. ~ Fc Ra~tf, IA~te, FEB..., 5 1998 Bill 180, Draft Two Page Two 2. What are the general parameters on the use of funds raised by a bond float? • Bond proceeds may be used to finance the costs of public improvements and other purposes as authorized by law. Section 47-3, HRS. • A statement that the bond proceeds will be devoted towards the costs of appropriations for public improvements in a capital budget ordinance that is identified in the bond authorization ordinance, is a sufficient statement of purpose. Individual public improvements do not need to be identified in the bond authorizing ordinance. Section 47-6, HRS. • Bond proceeds may only be used for the purposes for which they are issued, unless otherwise determined by the governing body. Section 47-5, HRS. 3. What are the parameters on the use of the bond proceeds from this particular proposed bond authorization? • Bill No. 180, Draft 2, (section 2) identifies three permissible uses of the bond proceeds: 1) To pay for appropriations, made in Ordinance 95-75, as amended, Ordinance 96-68, as amended, and Ordinance 97-82 as amended, for public improvement projects to be financed from general obligation bond funds; (See attachment A.) 2) To pay the costs of issuance of the bonds; and 3) To reimburse the General Fund for funds borrowed to pay costs of the appropriations mentioned above. • The bond ordinance may be amended to allow the use of funds for additional purposes. Mr. Takahashi noted in Communication No. 636.03, that proposed amendments to the bond ordinance to allow use of this bond authorization for capital projects authorized in subsequent capital budgets can be expected. • In the past the Council has also precluded funding of a specific project. As an example, bond Ordinance 95-82 contained language precluding the use of proceeds from that authorization to pay for the plans, financing, or construction of the Kealakehe Golf Course. ~a Bill 180, Draft Two Page Three 4. What is a bond rating? • Moody's defines a credit rating as, "...an assessment of the ability and willingness of an issuer offixed-income securities to make full and timely payments of amounts due on the security over its life." • In 1993 and 1996, the County received an "A" rating from Moody's. (Attachments A & B) • "Bonds that are rated A possess many favorable investment attributes and are to be considered as upper-medium-grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present that suggest a susceptibility to impairment some time in the future." Guide to Moody's Ratings, Rating Process, and Rating Practices B. Need for the Proposed Bond Authorization at This Time In a letter dated, Januay 23, 1998, we requested further information from County Finance Director, Harry Takahashi, regarding the need for the proposed bond authorization at this time. (Attachment C) We asked the following questions: Your letter of January 7, 7998 (Communication No. 636.03) provided a tentative list of projects that the proposed bond authorization is needed to fund a. Wllh respect to these projects, what wozdd he the implications of the $40 million G.O. bond authorization request not heing approved'? h. YVhat would be the implications of delaying approval qf'/his hoed authorization? c. If these projects cannot be delayed, please explain why and include relevant documentation such as court orders, etc. Please also include a schedule for implementation. 2. Has the availahility of other funding mechanisms for these projects heen explored? 3. What would he the positive impacts of authorizing this $40 million dollar hoed request at this time? We have been informed by Mr. Takahashi that these answers will be provided by the Departments of Planning and Public Works. 4F Page Four C. Financial Impacts In a request dated January 23, 1998, we requested information from Finance Director, Harry Takahashi, regarding the Administration's assessment of the financial impacts of its proposed bond authorization. The following information was requested: 1 &2. Over the next twenty years, what would be the estimated G.O. bond repayment schedule fora $40 million bond amount? 3. Over the next twenty years, what would be the estimated schedule of debt service requirements for the County's G.O. bonds with the addition of the $40 million bond? 4&5. What would be the County's total outstanding debt with the addition of the $40 million bond? What would be the breakdown of the County's net funded deht with the addition of the $40 million? 6. Project out for at least four years, if possible, the ratio of net bonded debt to assessed value and net bonded debt per capita. Please base these projections on trends derived from the best county data available. 7. Project out for at least four years, if possible, the ratio of annual debt service expenditures for G.O. bonded debt to total general governmental expenditures. Please base these projections on trends derived from the best county data available. 8. If the County issues the $40 million G.O. bond, please discuss what the budget implications, if any, may be of reductions in real property tax revenues and in the county's share of the Transient Accommodations Tax. How might declines in revenue be offset, i. e. through operational savings, etc. ? Mr. Takahashi's response, dated January 28, 1998, is attached. (Attachment D) Approved: Constance R. Kiriu Legislative Auditor ~i U9%9ti 10:35 '8`415 274 1726 SFL.9RO FF-~IOOD}~ 5 003- U„ ~."86x96 16:59:27 212-a53-4880-> 415 Z74 1726 Moody's Investors Page BAG ¦ ¦ Mood 's Mun~e~ a Credit Report v p Hawaii County, Hawaii February 5,1996 New issue General Obligation/Special Tax gp1e; 530,000,000 Public Improvement Bonds, 1996 Series A date: For bids February 6 Moody's ratfrtfl: A credit eommenT: The County's Arating has been reviewed and con- Rapid Payout, Absence Of Borrowing Plans, Ofi- Lirnted in conjunction with the sale of general obliga- set Hlgh Per Capita Debt tion Uonds to fund portions of tlu County's capital par capita debt levels are significantly above medians improvement plain for counties of this sin, especially in light oY' the Growing Fund Balances. Despite Slower Tax aluertce of overlapping debt borrowers and the lint- ColleCtlons iced level of local services. However, payout is rapid Three years of operating surpluses have pushed the and there are no additional borrowing plans. general fund balances to Healy 169'0 of general fund Agriculture In Transition And Resort Industry revenues, with nearly 99'0 of this amount tmdesig- Developing Hated. Budgeting of tmflled positions has helped Tito agriculture industry on Hawaii is undergoing create these surpltsses despite slower tax collections. rapid, T'undamental change as the last of the sugar Contraction Of TOX Base, Follows Rapid Growth plantations is due to close within the next year. A Early In The DeCOde major employer, agriculture has historically The 1996 data reflects additional - allxit small - employed one in 10 workers. Tourism continues to rnntraction of the tax Vase, leading to declining prop- Lwow. any tax collection. Following five yeah oti douUle• digit rax Uax expamion -including 26'90 growth in 1993 -appeals have sharply curtailed this trend. key facts: Debt Burden: 1.696 Undeslgnated Fund Balance as % of Median, 2.2~9o General Fund Revenues. 1994: 5.1°6 Direct Debt per Captta: 51,121 1~5: 8.7% Median: 5218 Property Taxes as % of Operating Overall Debt per Capra: E1.218 Revenues, 1996: 68.2% Median: S901 Average Annual Growth F.V.. Payout, Ten Years: 50.090 Ten Years, 1986-96: 936 General Fund Balance as % of General Flve Years 1991-96: 11.09° Fund Revenues, 1994: 13.096 One Year. 1995-96: -0.1% 1995: 15.79'0 F.V, per Capita. 1996: 578.314 ATTACHMEPJT A ~~J 02. 09, 96 10:35 ~'-315 ''?7d 1726 56L~HOFF-!10001 5 uo., a l- 82/dbi96 17.81.28 212-~63-4888-> 415 274 1726 Mtwrly's Investors Page alit - 2 General Obllgatlon/Special Tax February 5, 1996 Hawaii County, Hawaii Agriculture as % of Tax Base, 1996: 26.3% Moody's Ratings, % of Tax Burden: 30.196 General Obllgatlon Bonds, Government Employers as % of Serles 89A dtd. 12/ 1 /89 (MBIA): Ara Employed Labor force. 10/95: 17.496 Serles 896 dtd. 11/1/89 (MBIA): Aaa Unemployment Rate, 10/95, Serles 93A dtd. 5/1193 (FGIC): Asa County: 9.196 State: 5.796 analysts: Growing Ftutd Balances, DespiTe Slower TOx reversal in property tax base growth - a resource Collections providing two-thirds of operating revenues -has rep- The County ended the 1995 fiscal year with a 54.2 resented a significant budgetary challenge. million General Fltad surplus, following two years of Property tax collections dropped during this period prior sttrplttsacs. These sutplttses have helped the from 9890 to 9190 between fiscal 1991 and 1995. county build growing fund balances. The total fund While the recovery of toW rnllections has been zela- balance is now 15.7tY0 of General Fund Revenues and tively rapid, and while the levels of appeals have the undesignated balance touts 8.79'0. The county declined since peaking in 1994, the county still has derives nearly 8096 of its revenues from two key tax 1,234 appeals on approximauly 439'0 of the net taxa- sources: property taxes and the county's share of the ble value. Most importantly, while the declines have state-wide Transient Accommodation Tax (TAT). been small, they have not been matched by increases Economic condition, including the slowdown in in the tax rates, thereby resulting in the declining tourism, have created sugnation in the TAT since property tax reveturs. 1992 and property tax revenue growth slowed in Rapid Payout, Absence Ot Borrowing Plans, 1995 and a decline is projected in 1996. Offset High Per CapBa Debt While the county continues to face financial pres- Counties in Hawaii are the only form of local govern- suns due to the slowing tax revenue collection and Hunt and there are no underlying cities, school dis- rhe growth in nondiscmtionary expendimtes, such as trios or special districts. As a result. spar[ from retirement sysum contribution and debt service, some special assessment debt, all debt on the island's conservative budgeting techniques have created suffi- tax base is attributable to the county. Much borrow- cient reserves to provide edequau cushion. Specifi- ing for capital infrutrucntre generally Tmanced rally, the county's practice of fully budgeting all l~~y ~w~. ~ ~ nation -such as for educa- positiws, including vacant position, has reportedly tion, health care and judicial functions - is financed helped contribuu to the zeserves. by the stau. In this conuxt, the district's per capiut ConfractlOn Of TOX Base, FOIIOWS Rapid debt levels ere wall in excess of levels expected for a Growth EOrly In The DecadO county of this size. Debt service represents nearly Houl attd resort development, including high-end lOtYo of opuating expenditures. development such as new projects for the Ritz-Carl- Concerns about these debt levels are offset by the ton, Westin and Four Seasons hotels, helped spur a relatively rapid amortization of the debt service. The doubling of the tax base between 1990 and 1994. current issue is emortiud over 20 years. As is However u the impact of the rational recession hit common in Hawaii, however, initial principal amorti- the totuism market and as agriculture rnntinued to zation has been deferred throe years. The county show the effects of growing iruernational competi- does not have any additional borrowing plan for the tiara, tsx base appeals doubled in 1994 with 7.89'0 of next three years. Debt burden is moderaud by the the tax base under appeal. As a result, the overall tax high value of proputy with lisle associated popula- baxdeclined by 1.8'& in 1995 and 0.196 in 1996. tion -for example. large agricultural holdings and While thex declines are very small compared to the resorts - which help w moderate the debt levels as a rapid growth of the prior half decade. this mpid percent of the tax box. U2OBi96 10:36 $410 ~i4 1i26 SKLdROFF-)f00DS~S X1005 O] 1 82/06/% 17:84:87 Z1Z-r'~3-4888-> 415 Z74 1726 Moadv's Investors Pngc 8@A General Obligation/Special Tox Februtsy s. 1996 3 Hawaii County, Hawaii AgrlCUtlure In Transition And ReaoA Industry in the sugar Industry have also contributed to some of pgy~p~ng the highest unemployment levels in the state. With iu varied geography, ranging from alpine Recent runway expansion and the development of mountain meadows to Itch, wet rain forests, the new resorts an the island's ICona - or western -coast, island hat had a wide range of agricultural products. has contributed to a growing tourism industry. The Famed internationally for its Kona coffte, the ishutd•s unspoiled scenery and the avaibtbility of island's histnrixl agricultural mainstays have been age parcels of land have helped to fuel the develop- sugar and ranching. While the island continues to men[ of large. high-end resorts. The runways are supply newly two-thirds of the state's beef pmduc- now able to accommodate wide body jet service from tion. the sago industry has been declining rapidly. the matttland U.S. and negotiations are underway to Two plaatationt have closed in the past year and the provide direct international cervix: cunendy inter- last platuation is due to close in the next year, Other rational visitors mtsst fly through Honolulu. The agricultural praducn have stepped in to replace some yids mow-peaked mountains love amacud atuo- of the lost production, including Macadamia Nuts nomical and meteorological research facilives and and exotic flowers. Howtver, it will be sometime the islands' active volcanoes are a unique tourist before the 64.000 acres devoted w sugar production attraction in 1990 are fully absorbed for new tsses. The layoffs sale Ihforrnallon: Legal Name of Issuer. Caumy of Hawaii, Hawaii. Key Contacts Date of Bonds: February 1, 1996. Chlet Flnanclal Officer: Harry w. Takahashi, Security: General obligation unlimited tax. Under Finanx Director. Bond Counsel: Hawkins, Delafield Fc Wood, the State Constitution, debt cervix is a fast charge New York. on the county's General Fund and the county is Auditor: Deloitte & Touche, T_I-P, Honolulu obligated to levy tinliniited ad valorem taxes to pay (FY 1995) such debt service. R@glSirar: Hawaii Cotmty Director of Fitiance. ~ Purpose of BorrOWing: Fund public improvements paying Agent; Hawall County Director of wthorized in the fisca11994, 1995, and 1996 Capital Face, p Blldgel prdltl8nxs, l9 nmk may: Itr D.podtm• 7iwt Cuupny. N.w Ym3c rathg tirstory: October 1940: A January 1938: Aaa June 1938: Aa analyst: Nikolai J. Sklarott cats z~a-nal 02:09%96 10:5; $310 273 1x26 SKL3ROFF-100D1'S OOd. U1, 82/86/96 17:89:16 212-~3-4888-> 415 274 1726 Moady's Investors Page BBt7 6 General Obligation/Speclal Taz f~bruory 5, 1996 Hawaii County, Hawaii Retirement Syst®m ConMbutions (fkeal year ~dinp 6/80 $f]Df)) State System County Systemm Year Contrtbutlons % Change Payments to Reflrses 1991 4,139 - 300 1981 4,103 -0.9 282 1993 7,749 68.9 270 1994 10,445 34.8 249 1995 6.327 -39.4 226 1996 ~ 10,200 61.2 - 1997 ~ 14,100 38.2 - Soue.+: Offidel Satautm turl Budget Dooatutee o~r~ ®1n ttdtlidett eo cenaibndaa to tlr Sao tetveuurt eyuetu the county Halo, ptynem, a fotmr sttpley, tvho tedtadpioz to the imvpdon efthe Sme Syttem Employee Trends (Number of employees) Total Year Full Tlme Part Tlme Statt % Change 1994 2,155 292 2,447 - 1y95 2,181 289 2,470 0.9 1996 ~ 2,193 292 2,485 0.6 Snare: County Btdgu. OFhoj•ned. ~op~y Hawaii County valuation and Fiscal Assessed % Tax Rate/ Levy Coilected- taX data: Year Valuation (5000) 0 Change S 1 000 A.V. (S000) Current Tota_I 1987 54,416,615 1.4 59.19 $40,591 96 104 1988 4,591,893 4.0 9.09 41.721 97 103 1989 4,859,334 5.8 9.12 44,334 97 102 1990 5,508,659 13.4 9.16 50,458 97 102 1991 6,299,590 34.4 9.08 57,216 98 103 1992 7,328.122 L6.3 9.13 66,895 97 102 1993 ® 9,220,301 25.8 8.88 81,883 92 101 1994 © 10,812,348 17.3 8.54 92,317 92 97 1995 ~ ®10,618,893 -1.8 8.46 89,889 91 102 1996 D 10,611.589 •0.1 8.41 89,293 In process In process ~ Aua,udvelntticn i, [uIlveLatiat u 10016 eE fitraaelne vdu•. lea u•utpuat vtJueden itdudir a 540.000 huaonm•t+ ueutpdm,md ee,aa adttn ex•tt;~da,n, tvd 30W of •'elnetle,le m eppwl. Nuu•d uax.lly on 6ed• of 6urattuker, velu•. wsslt neu6le uapde,t of upiwWad Ludo whjr}, tc• ,uu•••d m the Eadr of egiadmtd tw. tuddtditaad eguadmdLotda rude[ SOW ofia mexd value m egeailttado,•. ®671 pepury to ePP°It fled widt aH(ael to 5279.826.676 of vt3u. or 3.OW of tool tut teaeWa vela. B 1.210 appeeL to 5838.442.647 tr 7A46 ofeb eee•epd vvYu hav b.en ftld 44.6W ftva th. tol. t.t tupym. D 1.309 ty{aeL (or $692.523.633 n• 63W eftb tut teseW ve1u. ®1.234eppele far 5483,482.372 er45W dth net uaeWe value. 88 WllveLu d112.731dBim u of lenmy L 1993: Jtatwry 1. 1996 dera.wt y.t evdleNa 02i09i96 10:38 Y3`413 274 1726 SKL-~ROFF-~IOODl'S ,-~-j ~p~ 82/86796 17:12:82 Z1Z-~°3-4889-> 415 Z74 1726 Moo~~i's Investors Page B99 8 Get'teral Obligatlon/Special Tax February 5, 1996 Hawaii County, Hawaii ecartomic PopWaTlon: Hawau County factors: ~ Area % Change Year Populatlon (sq. ml,) DenslN County State U S 1960 61,332 4,021 15 - 18.5 1970 63,468 4,037 16 3.5 21.7 13.3 1980 92,053 4,037 23 45.0 25.3 11.4 1990 120.317 ©4,028 30 30.7 14.9 9.6 1994 ®135,500 4,028 34 12.6 - - Saae.: U.S. Cmui emasu L7Ixdem in 1990 m i,diwY~ auaa ~~,vyl,aK ~ 6uarlmy olmtt~ dut m mw mmuscrm ~.duiegr. ®Ce,xuv adm,ae Location: Located in the Pacific Ocean, 2,200 Hawaii. The largest of the Hawaiian islands, the miles off the U.S. coast and 214 miles from Hono- island is also known as "The Big Island." lulu, Hawaii County encompasses the Island of Population and Housirlp Characteristics: Hawaii County County State U.S. 1980 1990 1990 1990 Populatlon: Median age 29.4 34.3 32.6 32.9 9n school age 21.5 20.8 17.8 18.2 So working age 59.2 58.8 63.4 61.7 65 and over 10.2 12.5 11.3 12.6 1Vo. persons/household 3.1 2.9 3.0 2.6 Income: hledianfamilyinconte 519,132 533,186 543,176 335,225 ~o below poverty level 13.2 14,2 8.3 13.1 Per capita income 56554 513,169 515,770 S14,420 Housing: % vacant - 4.2 3.3 3.0 ;'o owner occupied 60.6 61.1 53.9 64.2 built before 1939 20.2 10.8 6.7 18.4 9o built since last census 47.2 35.1 20.8 20.7 Owner occupied median value 570,300 5113.000 5245,300 579,100 \2edian gross tent 5266 5490 5650 5447 Occupied housing units 29,237 41,461 - s«.a: L`.S. C.nw au+u U2'09i 96 10:38 '$A15 27~} 1126 S6LdROFF-100lli'S OUP Gi, -82/86/96 1785.48 217 '•53-4BBB-> 415 274 1726 M~ dy's Investors Page X85 4 General Obligation/Special Tax February 5, 1996 Hawaii County, Hawaii debt factor6 Debt Statement a6 of 2/1/96 ($000) Amount Bonded debt outstanding 5114,981 Current offering (2/6/96) 30,000 Gross bonded debt 5144,981 Leases 1,924 State Revolving ]1md Loans 1664 Note - U.S. Govemnlent m 1.222 Gross direct debt $166,691 Less: G.O. -Self-supporting front Department of Water Supply 14.732 Net direct debt 5131,959 Overlapping debt Special assessment bonds 13,050 Overall tut debt 516.5,009 Snmw: Fumndet 5taaw~a.Officinl 9turtrnt aid Moady't ales. Q Fatusr Hrme m nxa~uvy Septmha7019. Far,ddidund infomatim plan nfa•b Aloaiy'~1995 Mmugpl ad noveaunentMatat Defaults: None recorded. Debt Ratios: Rate of tietfrement ($000): Nei Per© % ® Medlan Principal Amount % of Debt Capita Medlan ~ F.V. p Amount Due O ($000) Total Direct S 1.121 S 21 B 1.4 0.6 In S yeah S 30,952 21.3 Overall 1,218 901 1.6 2.2 In 10 years 72.470 50.0 t7199sn,.a;a,t~~,aW..Nw,pe~loo.oao~sa9.999. InlSyears 112.393 77.5 ®Budun~riuered 1994 popuhtim of 135.500. m I,m]odo carat iNUV l9 Budonrot mabl~~•tLe 4310.6 tillim: full vsl„saendem rot svtaul,Le fa 199G Structure: Current issue scheduled to be amortized Borrowing R@StrlCtlons: constitution limits tended rapidly through 2016. All debt due to be repaid by debt to IS'?o of let assessed valuation. Net assessed 2016, with the bulk repaid by 2013, value excludes exempt valuation and SOt?o of valua- CIP/FUture Borrowing: The County's six•year CIP lion OII appeal. F5lnded debt excludes reimbursable calls for 317.6 million of improvements in fiscal and self-supporting general obligation bonds. Includ- 1996 and a total of 557.2 million of improvements ing oursranding and total authorized, unissued lwnds, ova the next six years. The county expects to borrow the city has used a small traction of its constitutional S767,000 by issuing a genual obligadon to the fed- debt litltit oral government to fund wastewaur improvements. The obligation will carry abelow-market inurest expetne. 02/09/96 10:39 $`915 27i 1726 SKLAROFF-)100llT'S ~ OOb Ol; BZ/06r'96 17:07:20 212-~53-4000-> 415 274 1726 Moody's Investors Page 08,6 General Oblipatitxt/Special Tax Februtiy 5, 1996 5 Hawaii County, Hawaii adminktrative Form of Govefnment; Mayor•rnuncil system of ations on new contracts. Whitt Collar, Whitt Collar factors government;' governed by provisions of County Char• Supervisor and Professional and Scientific units have ter, effective January 1969 and suluequently contracts which expire on Tune 30, 1997, with the amended in 1979, 1982, and 1990. Mayor elected to article as wages which may be reopened upon agree- four-year term; current Mayor elected to first arm roan[ by all parties. which expires Dexmber 2, 1996. With few exxp- pensions; All employees are rnvered by the Stan lions, the Mayor directly sttperviaes all deparanenu. Retirement Sysum. Employee contributions are 7.890 Ntne-member council. While previously elected at of compensation, except firetighurs and police con- large to coacurretu four-year arms. a Charter amend- tributions, which are 12.2°Yo. County's share flucru- ment approved !n 1990 and which became effective ales each year. The estimated cost for 1996 is 310.2 on Dexmber 7, 1992, provided far two-year term million, which is significantly higher than the 36.3 council members each elected from a single-member million for focal 1995. district Provides full range of municipal services, RLSIc Management: The County isself-insured including police, fim and public proaa.•trwr, senile- with respect to general liability claims. Claims and lion, social services, culture end recreation. water suits have ranged from 3381,344 in fiscal 1991 to supply, plamilng end zming, and streets end high- 31.7 million in fiscal 1993. For fiscal 1995 the total ways. One of four counties inIiawau, Hawaii corn- wes 31,134,043. prises the large island known as the "Big Island... There are no separate mtmicipal governments. The Investments: County mainuins a cash and invest- s[au assumes resporrsibili4y for many functions meat pool for the General Fund, Special Revenue which are performed by local governments in other Iitnds, one Capital Projects Fund and two Agency stairs, notably stdtoals and hospitals The stair does namely the Stair Weight Tax and Payroll not, however, impose a property tax. The County Clearance funds. As of June 30, 1995, thex funds Department of Water Supply issemi-autonomous, totaled 558.7 million. Hawaii Revised Statutes PubIIC Employees: Represented by xven of the 13 ~~0~ counties to invest in obligations oT'the L'.S. bargaining uttits representing Public employees in the Treasury, agencies and instruuunWities, time cerdfi- stau. Six of these units also represent state employ- cares of deposir, bank repurchase agrcements and ees; public employer representation in negotiations of any improvement district of any county of are with the Govenxn, who has four votes, and each ~ Provided that the investments marure not of the four coumy mayors, Units representing Blue- more [hart three years from the dau of investment. Collar, Blue Collar Supervisors. Firefighters and ~ bulk of county funds are invested in bank repur- Police have negodatsd contract extensions on con- chase agrcemenn. tracts that expired an June 30, 1995 and are in negoti- LeglSlatlon/Rat@r@nda/LltlgaTlOn: tione pending. 02;09196 10:~t0 $415 2i-l 1726 SRL9ROFF-1I00DY'S ~01b G1~. BZ/86/9b 17:18:37 Z1Z-~'~-4888-> 415 Z74 1726 MooAy's Investors Page 888 6erteral Obllpoflon/Special Tux Febtucvy 5, 1996 7 Hawaii County, Hawaii 1996 Full Valuation: m 510,611,588,618 1996 F.V. per Capita: 578,314 1996 Equaliiation Rau: 100.096 m ttud m 1996uarrd vxlvsrtort 1996 Cull vxlvecon dam na yet vvv3hlx. Average Atnutel Growth F.V., 1986-96: m 9.3% m t6 y.a,. Average Annual Growth F.V.,1991-96: ®11.0% msyavx. FY 1994 Lorgest Tcfxooyers Business F.V, (5000) % F.V, B,P. Bishop Estau Land trust 350,109 2.7 Matuut Lani Resort Inc. Developer 189,471 1.5 Lanpar/FIII. Associaus Houl 159,000 1.2 South Kotula Resort Corp. Developer 144,204 1.1 Mauna Kea Development Corp, Developer 125,569 1.0 Mauna Kea Beach Houl Corp. Houl 95,449 0.7 Waikoloa Development Corp. Developer 90,985 0.7 Liliuokalani Trust Estate Land truR 90,092 0.7 Waikoloa Laad a~ Cattle Corp. Developer 83,092 0.7 Mauna Latti Bay Houl, Inc, Houl 76,646 0.6 Senw: Cavity arHawvu Apt Aepnry Tuaum ]Aviovn pa. ePacav efa,Avelw d 312.761illim. Property tax Base Composition (FY 1996) Net A.V. Tax Rate Net A.V. Tax Rate 01 per of per Taxable S1,000 of Taxable $1,000 of Total Net % of ~ of Tax Real Property Clan Buildings AV. Land A.V, A.V, (5000) Total A.V. Burdan0+ [mprovedrestdentiel $685,883 $830 $1,117,16] 58.50 41,803,044 17.0 17.2 Agtietiltural 697,709 6.50 2,096,388 10.00 2,794,298 26.3 30.1 Comsrvation 19.586 830 296,791 10.00 316,378 3.0 33 Hote]/Rewrt 440,835 8.50 435,758 10.00 876,593 8.3 9.1 Apartment 933,525 8.50 532,647 10.00 1,466,372 13.8 14.9 Commercial 380,340 8.50 348,511 10.00 728,651 6.9 75 lndusir[al 193,408 6.50 207,810 10.00 401,279 3.8 4.2 Unimpro~rod residential 30,342 8.50 379,090 10.00 409,432 3.9 4.3 Homeowner 739,411 4.45 1.075,930 4.45 1,915,342 17.1 9.0 Total 4,121,039 - 6,490,546 - 10,611,588 100.0 - Savoe: Fivaeii Camry and Moedy'. CelaJxdau pFtfaaivdy vll Agway eWw hJp n~6vidix~ uw 6avavmn exanpuvn. n~. diBo fiowaM~axmue, in I9nweu. wha.lu~galy «xmwcixl end,e,as aletwxivMidite nddandel haxr,owna~rridendsldr,r. 02: 0896 10:10 '$`ll~ 274 1726 SKLaROFF-?f00DS' S ~ a 8Z/BEi/9b 17:13:Z8 212-''=3-4888-> 415 Z74 177b Moo'•i's Inuesturs Page B!B Certeral ObNgaHat/Special Tax S, 1996 9 Hawaii County, Hawaii Labor Market CharacterlsNts: Hawall CotxNy ' Labor Total % Unemployed Year Force Employed County State U.S. 1992 63,502 58,564 7.6 4.5 7.4 1993 63.512 59,045 7.0 4.2 6.8 1994 64.841 58,034 103 6.1 6.1 10/94 64.332 57,068 11.3 6.3 5.4 10/95 61,391 56,912 9.1 5.7 5.2 Semce: t.oal Awe Unruplaymua sau.a<. MUS). Bum urta6or 9~audc.. Mmthly.amrta. ranat.,aweIlr ^dN~ LAUS .,o,uru .mrina in Lmay 1994an mmpaudly diHu~t aemtha. avgLWa fifram{irpauod.. Per Caplfa Income Income % Change -County as % of- Year County County State State U.S. 1979 S 6,554 - 129 S 84.7 69.8 1989 13,169 100.9 103.7 835 91.3 Largest Employers 1995 Employer Business Employees State of Ilawaii Govemment m 7.000 County of Hawaii Govemment ~ 2,100 Hilton Walltoloe Village Retxil/Iiotel 1,300 C. Brewer & Co. Agriculture 1,182 US. Govemment Govemment m 800 Wes[in Mauna ICea Beach Hotel Resort 785 KTA Super Stores Retail/fiotel 776 Ritz-Carlton ~ Retail/fiotel 700 Mauna I.ani gay Resort Reu+i1/FIotel 680 Sure Save Retail 455 Saaw: oamal.r.uat. ~ F.dml..eu,a,d]xataovmuvm aagioy 17.4x6 of drz aoployed w~vHmc.. 82/86/96 17;1452 212-553-4888-> 415 274 1726 Maody's Investors Pa®e 611 l0 General Obligation/Specid Tax February s, 1996 Hawaii County, Hawaii Employment Distribution by s®etor ~ HaWad County Slate of Hawall 1980 % of 1990 % of % Change 1980 % of 1990 % of % Change Employment Category Employees Total Employees Total 1980-90 Employees Total Employees Total 1980.90 Residentwozkforce 36,777 100.0 12,898 100.0 43.8 457,184 100.0 567,765 100.0 24.2 - Worked in County 35,028 91.2 52,030 98.4 48.5 447,067 97.8 363,772 993 211.1 • Worked out of County 1,749 4.8 868 1.6 -50.4 10,117 2.2 3,993 0.7 -605 By industry Sector, Agriculture m 4,272 11.2 5,437 10.0 27.3 14,793 3.6 16.832 3.2 13.8 Constmcdon 3,477 9.1 5,153 9.5 48.2 29,888 7.2 42,071 8.0 40.8 Tratlsportetlon ® 2,336 6.1 3,459 6.4 48.1 36,478 6.8 411,953 8.9 28.7 Wholesale andRetall uade 8,160 21.4 11,809 21.7 44.7 98,542 23.7 121,627 23.0 23.4 Rnence O 2.174 5.7 2,810 5.2 29.3 31,648 7.6 39,506 7.5 24.8 Business end repair services 1,251 33 2,244 4.1 79.4 17,832 4.3 23,629 4S 32.5 Personal® 4,154 10.9 7,221 13.3 73.8 38,150 9.2 54,033 10.2 41.6 publicadministratlon 2,771 7.3 3,164 5.8 14.2 41,573 10.0 42,950 8.1 3.3 Matlufecturing 3,177 83 2,721 5.0 -14.4 32,914 7.9 32,348 6.1 -1.7 Health professionals 1.700 4.5 2,917 5.4 71.6 22,390 5.4 35,758 6.8 59.7 Educationprofessionsals 3,090 8.1 4,421 8.1 43.1 31,989 7.7 40,750 7.7 27.4 Otherprofessionels 1,586 4.2 2,992 5.5 88.4 18,984 4.6 32.602 6.2 71.7 Source: U.S. Buveu of C<mu. O Buedon omsut.u,v.y of euZaloved pawm 16 y.k. ud oldn~. ~ IneL.de. fanny. fi.kria. andu>iny,g. O fneL.de. eo~xmuianYOU wd putalio uuli¢ee. ~ ]neY.dv. inuumee nrd tm,i ..wu. ~ IneL.de. m.auurxuem ud T,oeation ..vie... Operating Funds Financial Perfwmanee (fiscal years ended 6/30 $000) D - % Change - 1992 1993 1994 1995 1993-94 1994-95 Revenues 5106,847 E117,440 5128,153 5133,804 9.1 4.4 Expenditnres~ 109,188 114,177 125,173 129,861 9.6 3.7 Opezatingsurplus(deticit)m (1,262) 2,137 2,887 4,226 - - ~ Gm.dFu,d„ndDelx Sevin fwd(u.odifid aaxueluuthod of.eoounurv): nxludinS nuufm. ~aene.el Fu.d udy. ~ Bxcluiev 52.045.45 i of enpinl leuv p,oned. in 1991. SL31.I I4 in 1991 ud 17'0.000 of Ia,d pmnd. in 1990. 02%09%96 10:41 '$`415 274 1126 SKLdROFF-11DODS~'S 1Q 013U1J -82/86196 17:16:57 21Z-"3-4888-> 915 Z74 1726 Mooed s Investors Page B1Z Gerteral obgpalion/Special Tax Februcry 5. 1996 11 Hawaii County, Hawaii 1995 Sources of Revenue % 1995 Items of Exgendlture % pr~y~y ~~s 68.2 Public safety 375 Inurgovernmental 12.2 General Government 14.4 Transient Accommodations Tax m 10.9 Debt Service 9.7 Interdt 3.1 Cultute and recreation 8.1 Miscellaneous 2.5 Retlretnent and pension benefits and Licenses and permius 2.2 health fund 7.1 Chuges for service 1.2 Misxllnneous 5.8 Fines and forfeitures 0.4 Health Fund 55 mCaumy'e18.6AS d;,e¢ladonawae ofd,. wte-wide nand.n. Sanitarion 4.6 °~^fs'"~'~°"°°""'"`°°`°®0~°O011a`O1~' Health, education and welfare 3.8 e.ed.. te.. es~ ws. adowimeuve fa. Capital outlay m 2.0 OL~oLde. eenfas m ~^I+~P+°.Metl Gard General Fund Financial Pwffion (Racal years ended 6/30 $000) 1992 1993 1994 1995 Cash andInvestntents $16,535 $21,162 526,982 $29,131 Restricted cash 50 $0 $0 ($1.090) Operating loans 0 0 0 0 Other currant liabilities ~ © 12,962 17.530 20,881 19,379 Year-end cash surplus S 3,593 $ 3,631 5 6,100 S 9,751 ReceivablesCt] $ 1,085 ($183) $ 72b $ 1.920 Fundbalattce 511,389 $13,641 516,512 $20.842 Undesignaudfundbalance 3,521 2,634 6,548 11,512 ~:4n ofeLfandnvxue. m 1,cLdi,Y,uarnd Ear encwdes,nG 17.9 ®Bimin 1995. Special Revenue Fund Financial Positbn (tlacal years ended b/30 S000) 1992 1993 1994 1995 Fuel tax 5 5,321 $ 5,349 $ 5,504 S 5,613 Public utility franchise tax 2.531 2,615 2,851 3,216 Motor vehicle weight texas 2,342 2,311 2.312 2,300 Totalrevenues~ $13,356 $14,509 $15,788 316,827 I3ighways and streets 5,331 5.259 4,627 4,680 Expendit~es $13,520 $14,401 514,641 515,031 Stuplus(Deticit) (164) 108 1,147 1.796 Ending fund belana 3 1.966 S 2,074 $ 3.221 $ 5,017 D Speuel.ewwe Etdr oe„drtpiueuily of ttishwey Fud bm des i,cL+dee Pedd~g btwrFud SewcFmd. BBuwey Iivd C.uutay Pied end BeeudBmm F~md 82/H6f9b 17:19:25 212-553-4888-> 415 274 1726 MDDdy's Investors Page B,t3 12 General OWipation/Special Tmt Febnlory 5, 1996 Hawaii County, Hawaii Selected Tax Revenue Hictofy (fiscal year ending 6/30 $000) Public Motor USllry vehicle Property % % Fusl % kanchfae % Weight % Year Tax Change T.AT.f] Change Tax Change Tax Change Taxss Change 1991 $59,132 14.5 510,568 •21.1 $5,269 33 $2,231 17.4 $2,312 7.3 1992 67,922 14.9 m 14,237 34,5 5,321 I.0 2,531 13.4 2,342 13 1993 79,000 16.3 14,138 •0.7 5,349 0.5 2,615 3.3 2,311 •1.3 1994 89,537 13.3 13,266 -62 5,504 29 2,851 9.0 2,312 0.1 1995 91,200 1.9 14,627 10.3 5,613 2.0 3215 12.8 2,300 -0.5 1996® 88,051 •3.5 - - 6,200 lOS 3,000 -6.7 - _ Sanee: A,diadFueeuirl Sotuawoe N Coway'e ehen of nn.-wid. Timuin~ Accom~au i~a. mRefl.ae aleuyein the eDaoidmdtM aaneien___ _ ua. O1Hodwt General Fuld Update (fiscal years ending 6/JO Soon) 1994 p 1995 m 1996 ProlxrtY tax $ 89,537 $ 91,200 5 88,051 Licenses/Permits 2,665 2,994 3,264 Intergovemntental 30,229 31,302 29596 Charges for current services 1,498 1,613 1,552 Revenues $132,490 5131,924 $131,542 ~ wmlt. m H~ea 3298R01 ¦ C u 1996 iy Dioody'~ Lmnmt Seace. lrc, 9P Quaeh Sweet. Now Yam New Yodc 10007. AH nr mmved. ALL INFORMATION CONTAINED HEAHIN D] COPYRIGHT® LN THE NAME OF MOODY'S INVESTORS SERVICE, P1C. ("MOODY'S'•), A\D NONE OF SUCH INFORMATION MAY BH COPrBD OR OTIDtAWNE REPRODUCED, REPACKAGED, FURTHER TRANSM3ITED, TRANSFHRRED, DISSENAVATHD, AEDI67AIHUTHD OA RESOLD, OR STORED FOA 8UH88QUENF USE FOR ANY SUCH PURPOSE, Pl W80LE OR IN PART, IlV ANY FORM OR MANNER OA HY ANY M1rAN8 WBATSOHVER, HY ANY PEABOPt W1T$OUTMOODY'9 PAIOA WRITTPN CONBHNT. Au;alone.dea wuein.d heel, ie ebteitwd it MOODY'e Gam ee,enew ieliewd iyie m be and tdfelie. B.woee dthe poeeitdtiry dhtmn as nxdwtital e~ e. weu u atlcfetxoce. hoWOVer. wtdt ii6aaettlon iepm•Wed--uh"wpmot wemnty afwrykkd udMOODY'S. in pmcnilor. mitae noaepmewuon or exptne or m the eazxwey. eimelinen, coumlemn, uteaeiwmebOhy afitnen Lae mypedmlr~Fmpoe dory null itdo®e¢ut, UMe ro cheumeosnme dWl MOOD S love eny I~ialaltry m em perm or enWy L: (q etry ~ detutra b when or m pat owd Iy- n Gam ar idrug m. my coot (nealjgcz or odvwise) ax ocher cimadrnce or wi'ltin a amide the ooaeol d~MyO,.O~DY S or Y15Y dw d4aam. dfioeo, amplolees O[ e~tl~6te~lN OOMwLeIi wWl dN }{aCaROl11C WHCC4WL GOQ~IIIeHdL wle)yW, jryCp{eydafl, CO{{melalCedaR pabEodm a[.,r+.o~Oleayn]a11 WOmMIMI1.QN)eaY dLLtC. llld~..y..-~.CONIQINItML arllltlddldl dlm118M WIWNet'Q (inClndCl(WIIIlO1A ' vnmdaa.lance)...~,rMOgDrs+..de;.ea;o.d..tb.dthep,derond~nse..rrntuagGamdt.a.dar aa....eynKhlt~n~.tla,,. n, mm ;r .ey. a ~ aa~i pu[ d d. lnL~ aeat.t.d d.~, ne..t~a mac he aea.aaed cattyy n- .at®.,a d op~m .nd not .4te„~,ne of Lem ar hold wry eaanNlee. NO WARRANTY. HEPAESB OR LHPLIfiD, AB TO THE ACCURACY, I'IIHELINESS, COMPf.L7'IIiESS, MHRCBANTAHILItY OA F1TN'H88 FOA ANY PARTICOLAR PURPOSA OP ANY eUCH RATINO OA OTSEA OPINION OR INFORMATION IS GIVEN OA MADE HY MOODY'S 1N ANY POBat OA MANNHA WBATSOHYRR. 8eeh sir erode opiaimt outN 6e weltWd solely r one testa in fury imenment dedeim mde by a on bahelfdetry nadtlee utEosuem eoneeinedhaa®. andeeeh tetehtwenst rake lu own medy end evoirlietderdteeeudty eeddeeeh leaner std of..and scab peovidsz d areal a4poa tar. oseb eemiy de ie vey madder ptrriedo~, ho ar Fe:ooen m seedam 17(b> d dw seaside. Aa d 1933. M o hey diulaee thnmoa vmae ddebt namdee (in~~ eapme eadsudegalbatde. dehemer, nose end aommesfelF~,,e~e,,~~= qq' end caetmod rmc)c rated by MOODY'S love, poor m aeetgnmartdeny ROilg. egrzedmpevmMOODY'SGaappdeel endatitr earaoeeredaad Dyhfetl n~ryjl~lSpny sl.WVm '350.000. SF1N ~9 '93 ©>~17PM MOODWS INVESTORS P.3iJ , - MCS SAY@SfQ1'S S@~C® Updare puhliahad 05/06/93 ~ ' HAWAII COUNTY, HAWAII UPDATE: General Obligation/Special Tax MOODY'S RATING: R CREDIT COMMENT Con*.inued tzx base and economic growth, together with satisfactory reserves, support the upper medium grade rating. Development, especially tourism-related development, has fueled double digit tax bane growth for half a decade. While this growth has supported financial cperations, the rapid pace of assessed valuation growth has also prompted tar-payer resistance, reflected in high levels of assessment appeals. Nevertheless tax collections have been satisfactory and the tax rate has been relatively arable. Due to the Y,i gh proportion of the tax base comprised of hotel, resort and other comme[~ci al development, debt burden appears moderate relative to national norms, However, in light of the number of services and capital needs funded by tk,e State, notably in health, education and justice, debt levels are actually relatively high. Per capita debt is about double the norm for comparably-:•ized counties. As the center of much o! state's productive agricultural. industry, the county has lelt the brunt of the difficulCies due .o agricul rural restructuring, especially the decline of the sugar industry. while the county has been attracting more affluent tourism development and hlgh quality hotels, which bodes well for future grewth and development on the island, the short-term impact of the transition away from agricultural dependence, has been relatively high unemployment, the highest poverty levels in the state and the lowest per capita and family income levels. ?he narrowl;' based economy, with a strong tourism dependence, has suffered during the current national recession, especially due to the dependence of Califcrnia visitors. Tourism levels have fallen since peaking in 1990, although Chu diversion of tourists from Kauai, due to the damage caused by Hurricane i[[i ki, has helped moderate the impact on tourism. Current development of the Kona-Keahole airport, including runway expansion to accommodate wide-body jets, offers the potential for future direct flights from Japan, which could radically transform the county's tourism industry. KEY FACTS Debt Hurden: 1'94 Median: I'' 1 2.28 Payout, Ten Years: 46.1! Debt per Cai:ita: 41, 337 Median: ('lJ 6796 Gonezal Fund Balance as 8 0! 10.96 Goneral 1?und Revenues, 1992: Vndesign•ited: 3.36 Sources of :ievenue, 1992, property Texas: 64.14 Expenditure, 1992, 9 14 Debt Serrice: Per Capita Cncome, 1989 513,169 County: ATTACHMENT B . . S face: $15,770 Vnamployment 'late, 199:: q,08 State, 199 L: 2.s5 1/92: 5.98 1/93: 7.68 F.V. per Capita, 1993: 570,659 Average Annual Growth A.V., 1988-93: 15.08 Tan Largest taxpayers as 8 of A.V. 1992: 19.38 Moody's Aatir.gs, Hawaii County, General Obligation, Fublic ZmF~zovement Bends, dated 12/:./82, MBIA Corp.: Aaa Bonds dated 12/1/84, MBIA Corp.: Aaa Bonds dat~:d 6/1/89, MBIA Corp.: Aaa Series 19~J9 A, dated 12/1/89, MBIA Corp.: Aaa Series 19139 B, dated 11/1/89, MBIA Ccrp.: Aaa Series 1930 A, FGIC: Aaa (1]Moody's msdians £or counties with populations of 100,000 to 249,999. AF7ALYSIS The recent rapid and continuing tax base and economic growth, together with satisfactory finances and reserves, continue to support the R rating on the county's general obligations bonds. However, taxpayer resistance to rapidly growing property ta:ces, the relatively high level of debt and the narrowly based econort.y, dependent on agriculture and tourism, both of which are undergoing Various strains, are areas of potential concern. The largest and southernmost of Hawaii's seven inhabited islands, Hawaii County is a).so known as the "Hiq island." encompassing two-thirds of the state's total land area, but only about 113 cf the population. The county continues to experience rapid development. Construction of resort and hotel properties, especially high-quality hotels on the western side of the island, has contributed to a doubling of assessed valuation during the past five years. Whi1~3 this tax base growth has allowed the county to maintain relatively Stable property tax rates, tax levies have grown rapidly, prompting a high level of assessment appeals and discussion of tax limitation measures. While tax collections do not appear to have suffered yet, appeals for next year's tax Levy represent 7.e8 of the total tax base, compared to 3.08 this year. This trend, and particularly the county's response to the trend, will continue to be monitored. The rapid property tax revenue growth has supported satisfactory financial operations, with property taxes representing more Chan 698 of all operating revenues. Zntergovernmental aid, principally the county's share of the transient accommodations tax collected state-vide, is the second largest source of revenues. The state retains 58 of the tax tollected and distributes the balance to the counties. The county receives 18.68. While this source of revenue ha: continued to grow, this source could be wlnerabla to state attempts to retain a higher percentage of such revenues. While population growth has prompted growing demands for public services, the limited number of services provided by counties in Hawaii has also protected the county from expenditure growth. Many major governmental functions - some of which are especially wlnezable to economic pressures - such as health, welfare and judicial f~.utecions, as well as education, axe the responsibility of the state. As a resul':, public safety represents the largest portion of expenditures. The rapid assessed valuation growth has also had a favorable impact on debt burden whi :h, due to the high level of the tax base comprised of hotel, resort 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 4 JM1 V•Oi H.4 y0.'• DONALD IKEDA ;.i~?s~~?. ALAN S. KONISHI County Clrrk •;a-~ prpuR'CovnR'Clrrk Vrr•OI •Mr+ " CONSTANCE R. RIRIU OFFICE OF THE COUI~j~Y CLERK Lrg~slalrsr .9udlmr County of Hauw! Hnu~aii County Bmttmq ' 25 Aupuni Strttt Hilo, Huunii 96720 January 23, 1998 Harry A. Takahashi, Finance Director County of Hawaii Hilo, Hawaii 96720 Dear Mr. Takahashi: Subject: Bill 180, Draft 2 -Authorizing the Issuance of $40 Million in General Obligation Bonds The Council Finance Committee has deferred action on Bill 180, Draft 2, pending receipt of additional background information about the implications of issuing another $40 million in general obligation (G.O.) bonds at this time. A number of questions were raised by Council Members at the Finance Committee meeting and subsequent to the meeting. Your provision of answers to the following questions is requested: A. Financial Impacts I . Over the next twenty years, what would be the estimated G.O. bond repayment schedule fora $40 million bond amount? 2. Over the next twenty years, what would be the estimated G.O. bond repayment schedule fora $20 million bond amount? 3. Over the next twenty years, what would be the estimated schedule of debt service requirements for the County's G.O. bonds with the addition of the $40 million bond? 4. What would be the County's total outstanding debt with the addition of the $40 million bond? .ATTACHMENT C Mr. Harry Takahashi Page Two 5. What would be the breakdown of the County's net funded debt with the addition of the $40 million bond? G. Project out for at least four years, if possible, the ratio of net bonded debt to assessed value and net bonded debt per capita. Please base these projections on trends derived from the best county data available. 7. Project out for at least four years, if possible, the ratio of annual debt service expenditures for general obligation bonded debt to total general governmental expenditures. Please base these projections on trends derived from the best county data available. 8. If the Cowrty issues the $40 million G.O. bond, please discuss what the budget implications, if any, may be of reductions in real property tax revenues and in the county's share of the Transient Accommodations Tax. How might declines in revenue be offset, i.e. through operational savings, etc.? B. Need l . Your letter of January 7, 1998 (Communication No. 636.03), provided a tentative list of projects that the proposed bond authorization is needed to fund. a. With respect to these projects, what would be the imp]ications of the $40 million G.O. bond authorization request not being approved? b. What would be the implications of delaying approval of this bond authorization? c. if these projects cannot be delayed, please explain why and include relevant documentation such as court orders, etc. Please also include a schedule for implementation. 2. Has the availability of other funding mechanisms for these projects been explored? 3. Explain the positive impacts of authorizing this $40 million dollar bond request at this time. Mr. Harry Takahashi Page Three Council Member Chung would like to have this matter placed on the agenda of the February 17, 1998 Finance Committee meeting. Please be prepared to discuss this matter further at this time. To enable us to include your response to the Council's questions in our submittal to the Council, please submit it to us by Wednesday, February 4, 1998. Thank you very much for your assistance. Sincerely, cti.,,r Connie Kiriu Legislative Auditor cc: Council Members Mayor MtY or q- Stephen K. Yamashiro Harry A. Takahashi Mayor Director • S. K. Schutte Deputy '1~j p'•N'i~ County of Hawaii DEPARTMENT OF FINANCE 25 Aupuni Street, Room 1 I S • Hilo, Hawaii 96720-4252 (808)961-8234 (808)961-8248 January 28, 1998 TO: Connie Kiriu, Legislative Auditor FROM: Harry A. Takahashi, Finance Director~(~ 1 SLTBJ: Bill 180, Draft 2, Authorizing the Issuance of $40 Million in General Obligation Bonds Letter dated: January 23, 1998 Enclosed is a memo from Treasurer Frank Manalili responding to items A-1 through A-7 of your January 23, 1998, letter. In response to Item A-8, the Administration will be preparing its 1998-99 budget on current situation, not on hypothetical possibilities. Each year, the County has been threatened with revenue adjustments. In our presentation to the Legislature, we recognized the possibility of the County's share of the Transient Accommodations Tax being reduced. We recommended that the Legislature consider the sharing of fines and forfeitures and portion of the Public Service Company Tax and exempting the County from paying Genera] Excise Tax on its procurements. In addition, we felt that an amendment to the Civil Service laws to allow for more flexibility would result in more efficient government services. All of these suggestions could be the means by which we could offset losses resulting from adjustments to the TAT formula. In addressing how might revenue declines be offset, we would revisit the budget, both in revenues and expenditures. Any negative impact may be offset by adjustments to income generators, expenditures, or program efficiencies. Responses to B-1 through B-3 will be provided by the Departments of Planning and Public Works. HAT:aeb cc: Donna Fay. K. Kiyosaki Russell Kokubun ATTACHMENT D yV~ f 4~JN'V OF• "•Y _ ~i Steahen K. Yamashiro Harry A. Takahashi Mayor Direcmr • ~ .y ~J~•: wTO OFF Of •NF+ ~IILtIt'~}~T IIl ~~I~1T2Iit DEPARTMENT OF FINANCE 25 Aupuni Street, Room 118 Hilo, Hawaii 96720-4252 (808) 961-8234 Fax (806) 9618248 January 28, 1998 TO Harry A. Takahashi, Director of Finance FROM Frank Manalili, Treasurer SUBJECT: Response to Legislative Auditors Financial Impact Question The following should be your response to questions posed by the Legislative Auditor's letter of January 23, 1998 regarding financial impacts: 1. Enclose is the repayment schedule for a $40 million bond based on an interest rate of 5.25% for 20 years. 2. The repayment schedule would be half of the attached $40 million bond for a $20 million bond. 3. Enclosed is the schedule of the County's G. 0. bonds with the addition of the $40 million bond. This does not include the debt service on SRF loans which has a balance outstanding of $29,198,386 at February 1, 1998. The projection of annual SRF debt service for /t7 is based on Gary Takamura's attached SRF debt service at April 10, 1997. 4 & 5. The enclosed statement of funded debt at February 1, 1998 reflects the addition of the $40 million and the breakdown of debt. 6. Enclosed is ratio of Net Bonded Debt to Assessed Valuation and Net Bonded Debt per capita for past ten years and projected for ensuing four years. Net Bonded Debt used for projected four years net bonded debt at February 1, 1998. 7, Enclosed is ratio of annual debt service expenditures for general obligation bonded debt to total general governmental expenditures for the past years and projected for ensuing four years. g, Unable to comment on this. Enclosure (nTLE) G.O. BOND REPAYMENT SCHEDULE G.O. BOND AMOUNT: $40,000,000.00 INTEREST RATE: 5.25% ANNUAL PAYMENT: $3,489,004.48 DATE OF ISSUE: 20 Year amortization with equal annual debt service payments First principal payment on third anniversary of issuance PAYMENT YEARLY SEMI-ANNUAL DATE PAYMENT PAYMENT PAYMENT INTEREST PRINCIPAL BALANCE 1 $1,050,000.00 $1,050,000.00 $40,000,000.00 1stYr 2 $2,100,000.00 $1,050,000.00 $1,050,000.00 $40,000,000.00 3 $1,050,000.00 $1,050,000.00 $40,000,000.00 2nd Yr 4 $2,100,000.00 $1,050,000.00 $1,050,000.00 $40,000,000.00 5 $1,050,000.00 $1,050,000.00 $40,000,000.00 3rd Yr 6 $3,489,004.48 $2,439,004.48 $1,050,000.00 $1,389,004.48 $38,610,995.52 7 $1,013,538.63 $1,013,538.63 $38,610,995.52 4th Yr 8 $3,489,004.48 $2,475,465.84 $1,013,538.63 $1,461,927.21 $37,,149,068.31 9 $975,163.04 $975,163.04 $37,149,068.31 5th Yr 10 $3,489,004.48 $2,513,841.43 $975,163.04 $1,538,678.39 $35,610,389.92 11 $934,772.74 $934,772.74 $35,610,389.92 6th Yr 12 $3,489,004.48 $2,554,231.74 $934,772.74 $1,619,459.01 $33,990,930.91 13 $892,261.94 $892,261.94 $33,990,930.91 7th Yr 14 $3,489,004.48 $2,596,742.54 $892,261.94 $1,704,480.60 $32,286,450.31 15 $847,519.32 $847,519.32 $32,286,450.31 8th Yr 16 $3,489,004.48 $2,641,485.16 $847,519.32 $1,793,965.84 $30,492,484.47 17 $800,427.72 $800,427.72 $30,492,484.47 9th Yr 18 $3,489,004.48 $2,688,576.76 $800,427.72 $1,888,149.04 $28,604,335.43 19 $750,863.81 $750,863.81 $28,604,335.43 10th Yr 20 $3,489,004.48 $2,738,140.67 $750,863.81 $1,987,276.87 $26,617,058.56 21 $698,697.79 $698,697.79 $26,617,058.56 11th Yr 22 $3,489,004.48 $2,790,306.69 $698,697.79 $2,091,608.90 $24,525,449.66 23 $643,793.05 $643,793.05 $24,525,449.66 12th Yr 24 $3,489,004.48 $2,845,211.42 $643,793.05 $2,201,418.37 $22,324,031.29 25 $586,005.82 $586,005.82 $22,324,031.29 13th Yr 26 $3,489,004.48 $2,902,998.66 $586,005.82 $2,316,992.83 $20,007,038.46 27 $525,184.76 $525,184.76 $20,007,038.46 14th Yr 28 $3,489,004.48 $2,963,819.72 $525,184.76 $2,438,634.96 $17,568,403.50 29 $461,170.59 $461,170.59 $17,568,403.50 15th Yr 30 $3,489,004.48 $3,027,833.89 $461,170.59 $2,566,663.29 $15,001,740.20 31 $393,795.68 $393,795.68 $15,001,740.20 16th Yr 32 $3,489,004.48 $3,095,208.80 $393,795.68 $2,701,413.12 $12,300,327.09 33 $322,863.59 $322,883.59 $12,300,327.09 17th Yr 34 $3,489,004.48 $3,166,120.89 $322,883.59 $2,843,237.31 $9,457,089.78 35 $248,248.61 $248,248.61 $9,457,089.78 18th Yr 36 $3,489,004.48 $3,240,755.87 $248,248.61 $2,992,507.26 $6,464,582.52 37 $169,695.29 $169,695.29 $6,464,582.52 19th Yr 38 $3,489,004.48 $3,319,309.19 $169,695.29 $3,149,613.89 $3,314,968.62 39 $87,017.93 $87,017.93 $3,314,968.62 20thYr 40 $3,489,004.48 $3,401,986.55 $87,017.93 $3,314,968.62 (0.00) $67.002,080.59 $67,002,080.59 $27,002,080.59 $40,000,000.00 N M I N~ N N O N N N N N' N I N N N~ N N~ N O O O_ 0 0 0 0 0 0 0 0 0 0 0 C' 7 ~ ~ d 0 0 0 0 0 0[ X 0 0 f0 O ~ O (b _ W N A W N O tD (D V_ 01_ (P A G , O o O tD 'rl I~ r O O (n ~ W N W N N N N N N N N + ~ ~ A O W V 01 U W N> O t0 W V V O) Cn t0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 J O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N~ ~ m OD m Ia W N O t0 CD N O) O N UI O A O V A W N N Cn Ul (11 O O O O Cn O O O O 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 ~ i - O 0 0 0 0 0 0 0 0 0 0 Cp l ~ A A A W W W W~ W N N N N N N~ N ~ ~ O AA N O W O tT W O t0 V O) (T A N O c0 OD ~ Z O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 rb O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D '9 0 0 0 0 0 0 0 0 0 0 0co 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r - 1 to I Ja (P Cn (O t0 t0 O O tD ~ tell 0 0 0 0 0 0 0 CO11 ~ 00 00 00 0 0 0 0 0 0 ~ 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 ~ O 0 0 0 0 0 0 0 0 V I Cn O) CA fP N Cn (n A A A A W W W W w W ~ t0 CD N CO U1 (P V O QI > O (O O N W O V (O N O O O (P 0 0 0 0 C1i O UI (P 0 0 CI1 O 40.1 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 o O 0 0 0 0 0 0 0 W _ _ _ _ O N N N N ~ O A W N O t0 f0 49 J m (I~ CT A W (a N~ O O N O f0 CD O N A V O A V~ O) O W V t0 O O O Ol Ul Ul O O CT O CT O (T N O fT~ O (P t0 ro o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ w o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 e m O rt M V pl N O) tT (l~ G1 N A A ..pp A A W W W W W~ W N N N f. N (A (P W O O m A W O tD V Ot A W O Cb V W tQ CT O (T O Ul (h CT tr O CII O O N G1 O Ut O CT (T O ~ O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 A O W N N N N N N~ N~~ ~ ~ O O Cn V (A (P W N O O p V~ CA W A A W N N ~ O W W to N O CD V V V V (P t0 W (P O ~ (11 CO N O O O N N Cn Ui (P iT O O (Ti O (T 0 0 Ut [r O N O V 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 y 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 '0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 A O W W N N N N N N N N+>>+>++> Z O W+ f0 OD ~'V NI A f.W N O fD 07 V V Oi N A 4f N O + A CO A O 01 W + O <O 00 aD t0 O + W T Co .F O A t0 N W+ W CO 07 V O W A f0 Oo > r0 O f0 W A~ N A Oi O! i0 A Gi IJ + iD A A C/ i0 O N 00 O Oi + O W+ O! W r0 > O V A W OD N V N O N D O Oo W V v W W A N 00 Oo o~ ro tJi O rD aD V A C O 01 CD N W IJ 10 M 41 fD C7 O pppp CI O W IV a ~ O W 1D W+ N t0 OJ W V O V A A O> tD + 00 (b CA W W (r (T (T ~ O O t0 t0 O O O O t0 tD V V Cn tp ~~pp (J A OD (T N V IV m O N O A Cb Cp N + ~ N N ~ OD --I A A N N W O W O W CD W fD CA V O V CA Ut N O V O A N W (A O (A W V W tll N t0 N 6~ O CA ao O a c" (T Cn t0 O1 O P~ p 01 O) f0 tD O) N A (O t0 t0 (T CA O O - O O D/ O W> 0) W tD O V A (A (D pl V N pp 0 0 0 0 0 O W V V W W A N W (b 01 O (P O (O CA V A 0 0 0 0 0 O) C1D N W N p (n W t0 O o O) O W N A 0 0 0 O O W lD CA N (O (A W V O J ~P A O > f0 CA O O O N N _ - - - ~ O.__ - V V + ~ > ~ ~ rnrn wwrnrnaswwwwwwrnrn'ivv i~rnrnw r A Oo A A A 01 ~ (A 01 O) tT ~ O) ~ N ~ V V A Cn ? ~ N N O O (b W Cn W m V O) V O V CD O N V A O V~ O fTl ~ ~ t0 01 O> O (A tD O Gl W W O N O V O>~ N p ~ S7o N UN O V O N O (.1 O N Oi W A 0 0 0 (O A W (O G V V O V W t0 A A N W N~ Qf A Gt > O O O O A ~ W W A N O CD O t0 W O) O N V Cn CA (.T tJ~ tD lT CO tD fTl Ja V N ~ la O (O V tD (A (A fJ O V A > W N (O ~ (A W O U1 O V O V W (p B O A [A Oi O CA > V CI1 V p~ ~ N 1`, I N' N O N N N N N N N~ N N O N N fW N N N~ ~ ~l ' ~ ~ ~O~ O O O O~O~O O_ O O O O O O C ~ O~O (O O ~ _ O O O O O O C B O O (O (O ~ ~ 00 I QI (n A W~ N> O CD OJ V m (P A G J O [O (b i t A > N A Ul m V (O O~ N N W A N W ~ 1 j (P O N (T Cb f0 O > ~ O CD OD O] .P N V O O (P N O (P (P O> Gl (P O N C.T O J O, O O O O O O O O O O O O O O O D ~ 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11, _ _ _ .I ~ W W CO O N W ~ m I ~ ~°D~rn~Om~~o~`O I A~ W N (b J Ut O (T V O> I O I U O UOi CW7, CWI, (P N V ~ V O > O 0 0 0 0 0 0 (T (P Vt Cl, O O ~ 0 0 0 0 0 0 0 0 0 0 V' ~ ~ j - - - - w_; O I N A O W O> W A (P V O O W A (P m J OND (O T U, N W W N O V A (O A I (D N U1 00 O > O (P O O O O O N O fT (P O V1 Cn O O O 4, (P O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D y O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O J > ODD (n O (A N OND A O pp O V N O N N N Cp W CVT O ,(VTI O f~J, .(VT O OWO (V/, 0 0 0 0 0 0 0 CVI, ~ (WO > > N N N N W W W W W W W W V O W V (O N CT V f0 W VI 01 W (O > W V W V CD O (D Cn O W 4, O Vt W O Cn CA CD W f0 O O O N m W~ CD V N A W CD > (O CO O m N m O~ A~> (n N ~~ss ~ ~I V~ D A OJ O OD OD O (P A A f0 A W > A W N O O O N N N N N V V> W W W W 00 (P G O O N C7, (T N (T (T Ot N V V V V V 0 0 0 0 0 0 0 0 0 0 N In CT Cl, Ot O ~ V ~ > (A N W A f11 O V W (O [O O>> IV W W A A A V N A W O] V D) (n A> t0 m N O A O V W CD O CD U, O V N (O O N O O O W N V (O Cb (P > W N N fD CA CTS O V V N V V (ll V N A m W O N W W O7 ro rn CA N W N V V V (O Ui A V V N N N (n O N N D 4] pl O 0 0 0 UI 0 0 0 Vt UI (r (P (T O N [P O O V, (lt ~ O O O O O O O O O O O O O O O O O O O O ~ O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ' r - - - - - - - _ - - - ~ _ _ b O W > rt M O r N N N N N N W W W W Y_ Q) N G, V tD A m V CO > W A W V CO O~ W W Cp ~ O ~ A V tD O O tD 00 Ut fJ OD W OJ IV m (D > A O ~ (n > O (O (A A A A V O Cn N> V tT~ V N O A A O A O V N (J~ V O N V O CT O V O C71 N N (P N> W O fTl (T O U, O N CT O O O CIl O O Ut Gt O CI1 O1 W O O O O O O O O O O O O O O O O O O W N W > > J W N A C)1 O) V Ol O> N N W A (t~~ 01 O V W O p Cp OD A W N (ll V W CO 0 0 0 (O OJ (A A N CO m N t0 Cp IJ V W N O N tD <D (P O N A IJ A O W N V O A V o ~ W CA 01 V O rn ~ rn m cn o oo rn o pp 0o cn vt D V N O W [T > N N O V1 01 N W t0 W m W N CD N T IV > O (D U, IV (SI OJ D1 N (P V W V OD CT W W m N N N 0 OD O m O N N (A O O OD 01 W N O W J - - - - - - r > ~ r > ..a r N N N N Z O ~ W A 01 V CO O N W U/ 07 OI W OD tD O ~ > ~ O V W CO A OD N C!1 V OD CO O O t0 pp Oa N N O O O N A CO O! N V N O N V V ~ O OC A (CO~ O V p Op O O COO O O W A J tJl W W O iJ1 W V 00 O fJ1 A A V 0 0 0 H D 00 W t0 t0 Of ID A OI 00 CD N N W N A C O N O V V + t0 ~ 01 N V N OD W N O! V O O O W f7l CD N I~f W ~ N Qi tJN Ca jf, Q1 GO pp O Al C C O CO W 00 N 00 O W N A O OD N A A OD D] OD O O O O O O V V > N W W A A (T (P O) W V N OJ OD CO V > W m O N_ W A O U, O (n N O W i0 Ja O Cn O O, CA Oo V U1 yyaa Cn (A W V 0~ ~ O O O CJt ((pp N W i A W O O A .P V A W O N O] V CD CA Cb J O .P. A V O W 0 0 0. o c^. m. n, .n i>. c. is fi V V' W W N C~ N W CO A O~ OJ~ f0 O W N t0 ~ O O A W W C), > N U 01 O O A N W UI OD N O W m N O CD > (O r AIIII > ' _ _ fA f0 fD >I CO W O V Gl A W J ~J IJ (A W IJ (O > A A A 00 00 O A O OD A 0 0 OD A> V W V Ot V N N _ _ _ ~ O V V 01 m W W W 01 01 W W W W W W m D) V V V V V (n p W r > A 00 A A Sa ~ (A (A O) O ~ m (A ~ N 01 V V A Cn .P ~ N N 00 O OJ OD 00 W Q) V W V O V (A CO N ~J A (O V W O fll ~ > tD 01 O O O ~D O (1~ W O O (A O V (T~ > Ut N CD ZJ ap (J~ Cn O V O G, t0 W> O Ul fJl W A O O (D CO A W (O G- V V O V W O A A N W N j O A (T > 0 0 O O O A ~ W W A U1 O CO O CO W (A O N V OD O] (h CT CD U, (O (O m A J> N> A W p V Co 01 O N O V> A> W fJ CO O W O CT O V O V W W O A (b (T O OD V (T J N N N N r++++ r r++ O o O_ O a lmp tm0 ro m b 0 0 0 0 0 m m m b "1 ii m y~ 'T O m W N O m W V P P A$ N O m P V W P A m 11 T ~ :O Q 0 P m b b b b b .m io m m m n b b b b m m m m m~ II < D C m + A W N+ O m m V W W D W N O m P V W P m P y Z ~ O m < W m N W W m~ A A W W W W W W A~ A W II N m n + b m C) N O P W A W m V N O N A P P O W m II O d m jy O m m m W V V m O N A m W O~ P O A N m W II 6 d O n d ~ A W V P O O V O N W m V W m V P m m N m P O P W W m P+ P P W W V O A II C N m W O ~ m U O W rn~ W W N W A m O V P P P+ P m W II m O W O ~ p W W W V m m W W O N A m W P A N A O jj a m C m T D r _ m N N N N++ r++ r r+ II O d d O m Z N N+ O m m P P V W O O+ N W W A A W II N N m A m N y m+ W W m N W O W m O W W O m W m P 11 (t s Z W n F W m W rn m W O m r P W m P N m r O 11 m m~ W m m m + W V A W O P V W O N O W N V O O m V II 9 d (/1 9 m O N V V W W+ W m W O W P W P+ A W V 11 W W W m N V O V m W W W O P P N W W m P 11 ~ ul ~ r~ p 11 W W W W W W m P A A N N N ~ W W W~ A 11 W N m m V W A P P P P m N W N N 11 V N~ A m A m A O W N W W P O A P N W m II m O V 0 O W W+~ W (J A P m W V O O P m P A W P 11 d N d m m m O A W P m m A m V m~ W W 0 0 II 3~ W a 3 N A m m W A A N N W N V V N N W W N m m (T 41 m N Lf O O W W m O A W A + m W W+ V W m 11 7 m O m 4f W P N W O W m m N P A O m N V W W O 11 jj 9 ~ 9 W W m W W W W A A A W W W W W P A A P II ~ m r j d N O P W A N O m V W O N A P W O N W W II y y W W A W m V m N W m m m m P V P N P W 11 n x WO n F ~ W m O m W W A V W W P m V+ O N m O m N W O O d N P m V O V W P m P W N m N W O W m m+ W m+ m W A A P N r A W P O O jj f~ O O f V N W W A O V W O P m V V W O W V O 11 mi _ O m II II N N N++ O N m O W P W V V V P m+ II D ~ W D m W N m W N m W W P N W m N m P V O N II D_ 'O N D O W r m m A W m W+ CI O ~ W P m W P m 11 ' V rn A m W V N~ W V m W O m V O A II P O A W Or P O m A W m W m A m m + V N O P O W m~ m^ V H O] ~ W W+ O A O N V P W V O W P+ N W 11 m 6 m A m W m W W m W m A A N V W P W V m W W II 3f W II _ o 0 0 o m r W P W v V V a n m ~ W u A+ P W N O V V W W m N m V W II 'O ~ ' N O W O N N m V + W+ m m+ O 11 T d (ml W V 9 m V+ m O N N P V N A W++ W O U m ry V P y (D m O W A++ A P A N O A W O W II m 6 P m d + A+ W O P W O P+ m N m W V 11 `C ~ a°. W `C II II m m m m P P P P O W W a P A A W W 11 ~ N W A N O m V W A V V m W m W W A II D D p D D, A A W W m O N W V P W A W r p C V Ip m q V m A m V m P P P N m P O P N N m A m O W A P V O W W N W V O m m W P A P N m O II m O 0 0 0 m O O A W P m N W N W W N+ O W W O+ 11 n W O O V W m N m N m m m W V A V P P m p ~ aQ O II m w m in ~n ul a r v v V m m W~ ii D 9 W D V W o v W o r W m a V O W W n p_ £ v p o a in o a v v c m a bl r r a W p m P p p W A N V m W N P V W W m A ~ O W O ~ mom !mrom o rn Pmo V or .la O~ m o o v ~Im aio+rni.~ iu +inoP>m 11 m nrn o m m N+ P V W N V O+ V W m O m p ~ a°. O II O y O_ d_ ~ W rn W rn W W W A A A A ~ W V II - + m V W W O P W W V m N A II A d_ m m m V V V V m O+ N W W N+ m N 11 n m O d m W W m O P W W++ P ~ W A O j A 10 m W A A W m W A m P V m O 11 d O 10 U m + A A N+ W N N m O+ N O+ A II U O N A N O W N O A A W W m O P W A m O 11 H m `eE A m m 11 _ II O m m m m W W W V V V m P m A II D ~ N D_ W m W V A+ m N W m W W O W 11 m- O W m + O N~ m~~ A + O V W V O N II P C m A O~ C r m N A r m ~ W W V rn W ~ O ~ m W m W N+ W O A V m O V O T~ N O O 71 A m+ W A O A W N m V m O W O 11 Q 6 N O d m O O m O+ N P W W W W W O p a° O II N W W A A W W N N N N W W II f$ ~ W F 2 W V N W+ W+ N P A m A m II m O O pl m O m m O W+ O+ m W r y W A II 0 y n A O m d N N W+ W P W + m N W V m P W m P P m O P W m W m A V O ry O O T O C d m W P A W m A A m W A W W 11 O d 2 N O P W m+ W m m N A W N W W II 9 O 9 II _ 11 N O y O P m V V V W W V V V V II d ~ N d A+ m A N m V O W W m 11 J~ O O p 9 A+ O m O N V m m m~ II p 9 m O N 9 V V O W W N W~ V O 11 m O A O m N W P A m P W W O+ U d ~ O O U d W N P m P m V N+ N+ 11 T~ O. N O T ~ W m W N W W N O O V II U m o O N~ _ _ _ _ _ _ _ _ _ _ 11 II V W W W (T Y 4) N m m P m m O O O W m m II O W+ V W P V m m m W+ W O A O N ~ A II W W m P O V m V W A m W O A V W m N II ti m W m++ W W V m m N O A A N W W W V II O W A V m W m W m r A W W N V N O O V O II = m N A V P W W m W N m m W W W m W W II A W r N W P W W W W O N+ m 0 0 0 W W II V V V+ m O m m A O W N m W O O W m m p C COUNTY OF HAWAII Statement of Funded Debt February 1, 1998 1. Total Principal Amount of County Bonds Outstanding and Unpaid: a. County General Obligation Bonds $210,536,500 (Includes proposed $40 Million-Schedule A) b. Special Assessment Bonds 12,255,000 (Schedule B) c. Other Indebtedness 1,164,673 (Schedule C) d. State Revolving Fund Loans 29 198,386 (Schedule D) Grand Total of Bonds Outstanding and Unpaid $253 154,559 2. Exclusions from Grand Total: a. General Obligation Bonds maturing $ 4,956,000 in current fiscal year (Schedule A) b. General Obligation Bonds for 32,515,000 which full payment in moneys or securities have been irrevocably set aside (Schedule A) c. Special Assessment Bonds 12,255,000 (Schedule B) d. State Revolving Fund principal 1,164,673 maturing in current fiscal year (Schedule D) e. General Obligation Bonds 12,667,000 Reimbursable by the County Department of Water Supply (Schedule E) f. Pro Rata Share of 1978 8,255,720 Refunding Bonds for which funds are deposited in Invested Sinking Fund (Schedule F) Total Exclusions $ 71 813,393 Net Funded Debt of the County of Hawaii $181.391.166 at February 1, 1998 SUPPORTING SCHEDULES Statement of Funded Debt as of February 1, 1998 (Based on Records in Finance Department) Schedule A County General Obligation Bonds: Principal Amount General Obligation Outstanding Bonds Maturing in Februarv 1 1998 Current FY a. Advance-refunded bonds for which full payment irrevocably set aside: June 1, 1989 8,225,000 410,000 June 1, 1990 24,290,000 1,205,000 Sub-Total $32 515 000 $ 1 615 000 b. Other General Obligation Bonds: June 15, 1977 309,000 May 15, 1978 21,695,000 1,620,000 June 1, 1981 560,000 18,000 December 1, 1989 5,500,000 May 1, 1993 75,195,000 3,170,000 February 1, 1996 30,000,000 March 12, 1996 762,500 26,000 February 25, 1997 4,000,000 122,000 February 1, 1998(NewIssue) 40,000.000 Sub-Total $178 021,500 $4 956 000 Total County General Obligation Honds $210.536.500 $ 6.57.000 Schedule B Special Assessment Bonds: Principal Amount Outstanding 8/01/91 Kaloko Subdivision (17) X12,255.000 Schedule C Other Indebtedness: Principal Amount Outstanding Kulaimano Elderly Housing Project Mortgage (FmHA) R 1,1.64.673 Schedule D State Revolving Fund Loans: Principal Amount Principal Maturing Outstanding In Current FY Hilo WWTP Phase II $10,227,383 $ Waiakea Houselot Sewer 370,693 Waiakea Mill Pond Sewer 1,152,560 50,967 Kealakehe Effluent Disposal 1,095,322 Alii Drive Interceptor A & B 2,517,648 Ainako Interceptor A & B 1,924,631 Alii Drive Interceptor C & D 3,217,478 Kalanianaole Collector Sewer 1,431,994 30,265 Waiaha Bay SPS 3,032,979 Alii Drive Interceptor E & F 1,425,452 52,737 Holualoa Sewage Pump Station 2 802,246 82.710 .198,386 $ 216.679 Schedule E General Obligation Bonds Reimbursable by the County Department of Water Supply: ~ June 1, 1981 $ 560,000 a December 1, 1989 (Refunding) 3,250,000 May 1, 1993 9,265,000 Less: Amount already excluded (408,000) $12.667.000 Schedule F Pro Rata Share of 1978 Refunding Bonds for ' which funds are deposited in Invested Sinking Fund: i Principal Amount of Securities held in Sinking Fund $11,186,613 ! Interest Earnings to be realized by County on Securities in Sinking Fund 2,382,801 ' Sinking Fund amount set aside ! for payment of Refunding Bonds $13,569,414 Maximum Aggregate Sinking Fund requirement $11,186,613 Lesser of current Sinking Fund amount or Maximum Aggregate Sinking Fund requirement 11,186.613 Pro Rata Basis (Principal Outstanding of $21,695,000/Principal Outstanding plus Interest to Maturity of $7,703,826.00 73.80°s Amount excluded $ 8,255,720 w N N ti 'ii pppp b ~ ~ ~ ~ b b ~ ~ ~ ~ O b~ J~ c~i~ A W N~ O ~O 00 r i-+ ICI N `pAO pp A .A.. OWO v~ W O~ O N V p7/y S p p~ S S O S O S 0 v O S ~ z 0000 ~ R pp po o O O O O ~O ~t a to A A L is ~ j C~ C1 Oo N N E .U.. t~ii b a ~ ~ ~n ~n ~n ~Q~p1?. ~O r oo N O w ~o cn ~o `~,o z = Q Q a O~ N J~~~ v W N = S Op O C~ in in i.W ~O ~O C~ GO O O O ~ w oo A O~ to 00 pp~~ oo ~ w oo U ~ T W ~D fD n C V iv ti r F+ ~ ~ R O. U V 4~ W O O ~O 00 00 U y ~j R L,, L, Ly iy ~ O~ 00 N O W ~ 'D O C~ 2~ O n A A A A A C IJ tal Ln N ~EJ A w Oo v~ Q A N H 0~0 ~ W W N OAO ~ ~ v n Q, ~t p ~ ~ n r ~ ~ ~ o m ~ ti R7 d a z ti ~ ~ ~ c a o, v o0 w ~o ~ a a~ m N o w a~~ Co e ~ lu L+ lu ~ ~ IJ W i.n (J IJ A W 00 ~ O ~ n' ' .A. .A. ti ti ~ ~j U Opp ~ w w N OAO ~ P. '0 LS. ~ lQii ~ U .J.. A O J OWO ~ J r~+ ~ A 6 ~ R 0 o w A N N N N ~p D C O O O 6" O O 6` O b~ T O 6^ O O (A ~.y ~ m V w z N N S ~O a W W O~~~ 00 Vii N (9 00 + Table 9 COUNTY OF HAWAII Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt To Total General Governmental Expenditures Las[ Ten Fiscal Years and Projections for Ensuing Four Years Ratio of Debt Total Total Service to General Fiscal Debt General Governmental Year $jpCiRfll Tn ct Service 4endit~res F4nr_ndit~m_s 1988 $2,120,000 $4,850,366 $ 6,970,366 $ 74,383,408 9% 1989 2,967,000 4,899,844 7,866,844 79,578,807 10% 1990 3,022,000 5,083,110 8,105,110 85,213,673 10% 1991 2,681,000 6,324,606 9,005,606 102,457,902 9% 1992 3,026,000 6,137,804 9,163,804 115,070,212 8% 1993 3,992,000 5,936,363 9,928,363 123,140,556 8% 1994 4,923,187 6,459,361 11,382,548 134,984,061 8% 1995 5,335,443 6,245,235 11,580,678 139,831,035 8% 1996 5,327,414 6,067,082 11,394,496 140,225,931 8% 1997 5,984,439 7,597,939 13,582,378 153,420,338 9% 1998 6,394,863 7,789,175 14,184,038 162,625,000 9% 1999 7,799,386 9,683,550 17,482,936 172,382,000 10% 2000 8,L55,639 9,301,666 17,457,305 182,725,000 10% 2001 9,916,691 8,894,344 18,811,035 193,690,000 10%