COM 0636.004 1996-1998 - Laserfiche WebLink

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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.