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HomeMy WebLinkAboutCOM 0756.005 1996-1998 JNiV OF H,~ J. CURTIS TYLER, III P% Tel: (808) 96-8273 Cmuiribncviber Fax: (808) 9699-3291 ar +rF t'..4 / COUNTY COUNCIL County of Hneaaii Hawaii County Building 25 Aupuni Street Milo, Hawaii 96720 December 29, 1998 TO: Council Members FROM: Curtis Tyler, III Council Member , i. RE: Bill 209, Draft 3 Ij For your information, 1 am forwarding a response from Finance Director Harry Takahashi regarding my questions about the proposed general obligation bonds. As you know, I had asked that someone from the Finance and Planning Departments be present at the December 30, 1998, public hearing; but due to the holidays it seems unlikely that representatives will be present there. Thank you for your consideration. Please call me at 326-5684 if you have any questions. NU. ~~b • D~ N & „O rk,r. W C OUNc.i t DEC 2 9 1998 77-6399 Nalani St., Suite 1-A Kailua-Kona, Hawaii 96740 Kona Telephone: (808) 326-5684 Fax: (808) 326-5697 t To: Curtis Tyler, Council Member From: Harry A. Takahashi, Finance DirectorA-1-1 Subject: General Obligation Bonds Bill 209, Draft 3 You have submitted the following for information. How are bonds issued? How are bond ratings determined? How will additional debt service be paid? Request for the latest Statement of Bonded Indebtedness. How are bonds issued? Chapter 47, Hawaii Revised Statutes, provides each county with the power and authority to issue general obligation bonds. These bonds are issued by competitive sale or negotiated. How are bond ratings determined? Bond ratings are prepared by both Moody's Investment Service and Standard and Poor's. We have attached copies of the ratings of the last sale in 1996. Please note that both rating services rated our bonds at A. How would debt service be paid? When Council authorizes a bond issuance, they are pledging the full faith and credit of the County to the payment of the principal of and interest on the bonds. The principal and interest payments shall be the first charge on the General Fund of the County. After payment of the debt service on our bonds, the balance of expenditures are limited to the remaining available resources. Statement of Indebtedness We have also enclosed the latest Statement of Funded Debt, dated July 1, 1998. We apologize not being able to attend the public hearing, but, with the Holiday schedule we are shortstaffed and we were not aware of this public hearing. Should you have any further questions, please contact your staff as she may be able to conduct the research of the referenced sources. yzi uaiue ae:va -o'yaa ci. alto ana-nnvrr-mwva ~ ..y ...a....... Mood s Investors Service y Public Finance Telecopy Transmittal PLEASE DELIVER THIS MATERIAL AS SOON AS POSSIBLE Date Sent: 2/5/96 Time Sent: 5:17 PM Paaifta Tlma To: Mr. Frank Manalili From: Nikolai J. Sklaroff, Treasurer, Hawaii County ~Moody's Investors Service Fax: 808-961-8330 Phone: 808-961-8351 We are beginning to send pages (including the cover sheet) Message: Good luck with tomorrow's bond pricing. I thought you might appreciate a copy of the Rating RECAP we released on Hawaii County's rating. You will, of course, also receive a copy of the full credit report. Nikolai ? Hard Copy to Follow. ? Reply Requested. ? Receipt Acknowledgement Requested 'THIS COMMUNICATION CONTAINS COWMENTML MFORMATION BYTENOEO FOR 7HEEXCLUSIVE USE OF TIE INDIVIDUAL OR ENT/TY NAMED ABOVE. /F T/E RECVENT OF THIS COMM MICAT/ON IS NOT TAE ADDRESSEE ORA PERSON RESPONSOLE FOR DEU ERMIG 7HE MESSAGE TO TAFAODRESSEE, YOUARE NEREBYNOTFED THAT YOUARE STRR7LYPROHvmD FROM AEAwm, US/MB, i7A#WW, DISSEM/NATINO, DISTRMUTMIG OR COPYING TINS COMMUMATION. brYOU NAVE AECENEO TINS COWNWATION MI ERROR, PLEASE /MMEDIATELY NOTFY US BY TELEPHOW AND DESTROY THB ENTNE COMMUNICATION. THAW YOU- ••cors rage N2 Moody s Municipa Daily Rating Recap Hawaii County, Hawaii Rating date: January 31, 1996 Moody's rating: A Public Improvement Bonds, 1996 Series A Sale: $30,000,000 Contraction Of Tax Base, Follows Rapid Growth Date of Sale: February 6 Early In The Decade Type: Competitive The 1996 data reflects additional - albeit small - contrac- Security: General obligation, unlimited tax. Under the lion of the tax base, leading to declining property tax state constitution, debt service is a first charge on the collections. Following five years of double-digit tax base county's General Fund and the county is obligated to expansion - including 26% growth in 1993 - appeals levy unlimited ad valorem taxes to pay such debt service. have sharply curtailed this trend. Use of Proceeds: Fund public improvements author- Rapid Payout, Absence Of Borrowing Plans, Offset ized in the fiscal 1994, 1995 and 1996 Capital Budget High Per Capita Debt ordinances. Last Rating change: October 1940: Aa to A Per capita debt levels are significantly above medians for Credit Comment: The County's A rating has been counties of this size, especially in light of the absence of reviewed and confirmed in conjunction with the sale of overlapping debt borrowers and the limited level of local general obligation bonds to fund portions of the services. However, payout is rapid and there are no county's capital improvement plan: additional borrowing plans. Growing Fund Balances, Despite Slower Tax Agriculture In Transition And Resort Industry Collections Developing Three years of operating surpluses have pushed the gen- The agriculture industry on Hawaii is undergoing rapid, eral fund balances to nearly 16% of general fund rove- fundamental change as the last of the sugar plantations is esignated. due to close within the next year. A major employer, noes, with nearly 9% of this amount und Budgeting of unfilled positions has helped create these agriculture has historically employed one in 10 workers. Tourism continues to grow. surpluses despite slower tax collections. analyst: Nikolal J. Sklaroff (415) 274-1741 ag&.. s at~rr• yzi uai ao lO:Vl "QYl.I LIY 1I LO JrtLpRVrY-dluwa J WJ ~~+vve Moodys Investors Service Public Finance Telecopy Transmittal PLEASE DELIVER THIS MATERIAL AS SOON AS POSSIBLE Date Sent: 2/5/96 Time Sent: 5:17 PM Psdflo nm. To: Mr. Frank Manalili From: Nikolai J. Sklaroff, Treasurer, Hawaii County Moody's Investors Service Fax: 808-961-8330 Phone: 808-961-8351 We are beginning to send pages (including the cover sheet) Message: Good luck with tomorrow's bond pricing. I thought you might appreciate a copy of the Rating RECAP we released on Hawaii County's rating. You will, of course, also receive a copy of the full credit report. Nikolai ? Hard Copy to Follow. ? Reply Requested. ? Receipt Acknowledgement Requested 'THIS COMMUWATTON CONTASYS CONFIDENTIAL NWORMAT/ON INTENDED FOR Tiff EXCLUSW USE OF THE SYDIV/DUAL OR ENTITY NAMED ABOVE IFTHE RECIPIENT OF THIS COMMUMr.4noNAS NOT ThE ADORESSEP OR A PERSON RESPONSELEFOR DEL WAM THE MESSAGE TO TFff ALMRESSEF, YOUAREW MBYNOTIAED THAT YOUARE ST=7Lr mwwaED FAOM REAom, US/M10 /MTAmw, D/SSEMm7m, O/STR6UTm aR COPYwO Tm COMMUN/CAmw ff YOU NA VE /MCEmEO TMs COMMUM"TON IN ERROR, PLEASE /MMFUJAMLY NOT]FY US BY TELEPNOW AND DESTROY INS ENTM COMMUNR:ATMOM THANK YOU.' .,,,,cssors rage Buz Moody's Municipal Daily Rating Recap Hawaii County, Hawaii Rating date: January 31, 1996 Moody's rating: A Public Improvement Bonds, 1996 Series A Sale: $30,000,000 Contraction Of Tax Base, Follows Rapid Growth Date of Sale: February 6 Early In The Decade Type: Competitive The 1996 data reflects additional - albeit small - coutrac- Security: General obligation, unlimited tax. Under the lion of the tax base, leading to declining property tax State Constitution, debt service is a fast charge on the collections. Following five years of double-digit tax base county's General Fund and the county is obligated to expansion - including 26% growth in 1993 - appeals levy unlimited ad valorem taxes to pay such debt service. have sharply curtailed this trend. Use of Proceeds: Fund public improvements author- Rapid Payout, Absence Of Borrowing Plans, Offset ized in the fiscal 1994, 1995 and 1996 Capital Budget High Per Capita Debt ordinances' Last Rating change: October 1940: Aa to A Per capita debt levels are significantly above medians for Credit Comment: The County's A rating has been counties of this size, especially in light of the absence of reviewed and confirmed in conjunction with the sale of overlapping debt borrowers and the limited level of local general obligation bonds to fund portions of the services. However, payout is rapid and there are no County's capital improvement plan: additional borrowing plans- Growing Fund Balances, Despite Slower Tax Agriculture In Transition And Resort Industry Collections Developing The agriculture industry on Hawaii is undergoing rapid, Three years a operating surpluses have pushed the gen- fundamental change as the last of the sugar plantations is eral nuesfund balances to nearly 1 of general fund rove- due to close within the next year. A major employer, ue, with nearly 9% of this amount undesignatcd. agriculture has historically employed one in 10 workers. Budgeting of unfilled positions has helped create these Tourism continues to grow. surpluses despite slower tax collections. analyst: Nikoiai J. Sklaroff (415) 274-1741 ails r~ S&P PUBLIC FINANCE RECIPIENT REF: Takahashi, Harry TO FAX PHONE 18089618248 FROM: S&P PUBLIC FINANCE 4 PAGES INCLUDING COVER SHEET MSG REF#: 05400097.0001 DATE/TIME: Feb 02, '96 20:17 (ET) Y ' J r PUBLIC FINANCE PRESALE ANALYSIS 1990, and two-thirds of the permanent residents workers. The Bishop Estate, which acquired are located in the 1 lilo area. I lawan County's much of the former I lamakua property. is seek- economy is dominated by the tourism industry, ingto develop a commercial forestry operation on which grew more than 50% in the 1980s and is these acres, Other hnponant agricultural Food- concentrated in the dry and sunny Kona and nets include Flowersand nurseryproducts,maces Kchala Coast areas of the island's western side, damia puts, cattle, and coffee. Economic recovery has been slow to take hold, Empb}ment growth has been limited, with a vrth essentiall v Oat growth in the number of cumulative job loss of about 1,300 jobs, or 24'. visitors is the ro:nr tbccugh November 1995. from 1991-1994. County unemployment, at 9.!'16 This follows three years of declining visitor as of October Ic95. was above the state average. courts. such that the total count is down nearly Income also is IONA~ -with per capita personal in- I1% from its leak of 11 million Visfiors in 1991. core ai about 7S'1, of tbu slate average. 'Dentists from the mainland U .1i. aid Canada make up more thonn 80% of the county's vtsltnrv: FINANCES Hawaii County manages its finances how•evr. gmw[h in trnn:ism from JaFran has been prudently. despite its weak economic recovery an increasing, but volatile. share. Hotel occu and the decline in property tax receipts. The panty has Yeet running in the 58% CAM range' county is responsible for most municipal fund one of the island's major hotels has been wider Lions. but the state provides for education, judi- clal., amid hospitals directly. The county relies on ASSE6S~•FQO@ERTVVAIM TRMS property taxes for ahnns< i s of its revenues. - - - - with the balance consisting of state shared tran- - scent accommodations taxes 01%), grants, and _ ~ - - sera ire ehnrgcs a .11 permits. The county ma,m I= Inks uurforrn tax rtes for all rhsses of properly T alt:'aFatm-ez I. r with the exception of a 1 oune vylicr class, which I LJ T„t^' I _ j1 it established t t fiscal 199'1 Corre:rah, the weighted average tax rate is 58.41 per $1,000 of 1J assessed values, with the homeowner class at -'fit- 1 C $4.45 per S 1.000. Despite weaknesses rn revenue growth. the county posted operating surpluses in each of the `I past three fiscal years. In part. fiscal 1995's result If 1- - was enhanced by a reduced pension obligation. In addition. the county has realized increased amounts of delinquent property tax collections. pacaliv ofFsenLng the assessed valuation de- dine. The county's unreserved general fund bal- O _ mice at June 30. 1995 was a strong $11.5 million. 1y~T W91 14•j , [ 43- t7¢a ;;fih*5 t }L. a up from S2.6 million in 1993 and equal to 10`X Of a nunem mienditums. The fist At 1996 budget as- sumes the use of about 53 6 million of this bal- ienovation for tie past 18 months. The destine in ante. but the county maiolains a freeze on hiring tourism has affected roumty property values. and a poli: v of transferring excess departmental with a cumulative 16.5% decline tan hotel anu balances. apartmentvaluations in the past two years. Over- all pro:erty values, hrnvever. have declined 1"-s DEBT The county's debt burden increases Lear than 2i5& Molding activity also has been slow to ginallvivith thishondsale, but rem;unsin thelow, recover. with continued weakness in both resi- to rraderam range (Tverall net debtrisesto$1,059 dentiai and commercial permits. per capita End 1 4% of assessed property values. The county's historic links to agriculture have Debt senice consumes a moderate 1046- 11% of been significantly weakened over thepast decade the county's general and debt servireOmddre- and were particularly affected by the closing of sources Proceeds fmrn the ruml bond sale Li two major sugarplamtaticns. Ha-nakua Sugar Co, nance a variety of projects authorized by county ceased production in 1994, c uttir,e over 50,000 o, (loaner, including solid waste facilities, a fire acrescfsugarrane culcv2tion mid idlingover600 administrato!h building. and various street. 2 PREPRINTED FROM STANDARD&POOR'S CREDITWEEN MUNICIPAL FEBRUARY Z. 1996 PUBLIC FINANCE PRESALE ANALYSIS water, and recreation projects. About S15 million Sion. Upon completion ofthlssale, thecoun"ill of the county's direct debt is fully supported by have $27.4 million in authorized but unfunded water revenues. which are collected and admen capital projects as per county ordinance. istered by a quasi independent water commis CNIH 18^3 1===bulk ing CredRWeek Macipal-Repioduciag of distributing GedfWerk Mnfopal without tit co~:sert of the publisher is prohibited. For rates, or our FAX services, please cal (212) 203-1146. preprinted from CreditAwk Munroal by Standard & Pnors Ratings Group, a Division of The McGrw Hill Companies, Inc. Executive offices: 1221 Avenue d die Americas, New Yak, N.Y. 100211. Ldi onal offices: 25 Droaamay. New York, N.Y. 1(i ISSN 1058-6618. U.S. subscription rate USS2,350 per year. Pkase unite fur rates in uu1M routines. Subsuira services. (212) 208 1146. Copyngh 1996 by The McGiaw Hit Companies, Inc. Reproduction in wtrole a in part prohibited except by permissim. All nglis resented. Officers of The McGraw-Hill Companies, Inc Joseph L. Dionne, Chairman and Chef Execudee Officer; Harold W McCraw, III. Nesdert and Chef Operating Officer; Robert N. I andes, Soria Fxewtive Vice Resident and Seaerary; Nemeth M. Vmta, Soria 'Ace President and General Counsel Frank Pef4ase, Senior Vice president, Treasury Operations. Information has been obtained by Cle,*Wmk Mumnicalfrom sources beaeted to be reliable. However, because of the possibility of human a mechanical error by our sources. C'red'Week Municipal, a others, aedrNeek Mavapal does not quaranee the xceuacv, adequacy. or completeness of arty m arratim and is not responsible for any was or cmissims or for the resets obtiaed from the use of such xium cabal. PREPRINTED FROM STANDARD A POOR'S CREDITW'EEA MUNICiPAt FEBRUARY 1, 1996 .uziuaiao lu:JJ -"413 414 1140 Jni.flnurr-muuw o ~rj~u~,~yy /N6 t% 16:59:27 7" 63-4000-> 415 274 1726 ^¢y's Inuestors Page 082 M oody s Municipal Credit Report Hawaii County, Hawaii February 5, 1996 New Issue General Obllgatlon/Special Tax sale- $30,000,000 Public Improvement Bonds. 1996 Series A date: For bids February 6 Moody's ratWV: A Credit Cpnment The County's Arating has been reviewed and con- Rapid Payout, Absence Of Borrowing Plans, Off- flrmed in conjunction with the We of general obliga- set High Per Capita Debt tion bonds to fund portions of the County's capital per capita debt levels are significantly above medians improvement plan: for counties of this size, especially in light of the Growling Fund Balances. Despite Slower Tax absence of overlapping debt borrowers and the lim- Coliectlons ited level of local services. However, payout is rapid Three years of operating surpluses have pushed the and there am no additional borrowing plans. general fund balances to nearly 16% of general fund Agriculture In Transition And Resort Industry revenues, with nearly 9% of this amount undesig- Developing hated. Budgeting of unfilled positions has helped The agriculture industry an Hawaii is undergoing create these surpluses despite slower tax collection& rapid, fundamental change as the last of the sugar Contraction Of Tax 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 - albeit small - employed one in 10 workers. Tourism continues to contraction of the tax base, leading to declining prop- grow. erty tax collections. Following five years of double- digit tax base expansion • including 26% growth in 1993 - appeals have sharply curtailed this trend. key facts: Debt Burden: 1.6% Iktdeslgnated Fund Balance as % of Median: 2.2% General Fund Revenues, 1994: 5.1% 1995: 8.7% Direct Debt per Capita: $1,121 Median: $218 Property Taxes as % of Operating Revenues, 1996: 681% Overall Debt per Capita: $1,218 Median: $901 Average Annual Growth F.V.. 50.0% Ten Years, 1986-96: 9.3% Payout. Ten Years: Five Years 1991-96: 11.0% General Fund Balance as % of General One Year. 1995-96: -0.190 Fund Revenues, 1994: 13.0% F.V. per Capita, 1996: $78.314 1995: 15.7% WQfljftn_rV_fl n UZ/Uei ab 1U: 11 Ili '041a 414 1140 aAL Aurr-AVV?1 0 .µJ vV Y/ V1Y .;02/86/% 17:0128 03-4888-> 415 274 1726 --dm's Inuestors Page 003 2 General Obl%KdkxVSpecial Tax February S. 19% Hawaii County, Hawaii Agriculture as % of Tax Base, 1996: 26.3% Moody's Ratings, % of Tax Burden: 30.1% General Obllgation Bonds, Government Employers as % of Series 89A dud. 12/1/89 (MBIA): Aaa Employed Labor Force. 10/95: 17.4% merles 89B did. 11 /1/89 (MBIA): Aao Unemployment Rate, 10/95, Series 93A did. S/1/93 (FGIC): Aaa County: 9.1% State: 5.7% analysis: Growing Fund Balances, Despite Slower Tax 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 $4.2 resented a significant budgetary challenge. million General Fund surplus, following two years of Property tax collections dropped during this period prior surpluses. These surpluses have helped the from 98% to 91% between fiscal 1991 and 1995. county build growing fund balances. The total fund While the recovery of total collections has been rela- balance is now 15.7% of General Fund Revenues and tively rapid, and while the levels of appeals have the undesignated balance totals 8.796, The corny declined since peaking in 1994, the county still has derives nearly 80% of its revenues from two key tax 1234 appeals on approximately 4.5% 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 Accommodations Tax (TAT). been small, they have not been matched by increases Economic conditions, including the slowdown in in the tax rates, thereby resulting in the declining tourism, have created stagnation in the TAT since property tax revenues. 1992 and property tax revenue growth slowed in Rapid Payout. Absence Of Borrowing Plans, 1995 and a decline is projected in 1996. Offset High Per Capita Debt While the county continues to face financial pres- Counties in Hawaii arc the only form of local govern- sures due to the slowing tax revenue collections and ment and them are no underlying cities, school dis- the growth in nondiscre i cawy expenditures, such as tricts or special districts. As a result, apart from retirement system contributions 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 adequate cushion. Specifn- ing for capital infrastructure generally financed cally, the county's practice of fully budgeting all locally elsewhere in the nation - such as for educa- positions, including vacant positions, has reportedly tion, health cam and judicial functions - is financed helped contribute to the reserves. by the state. In this context, the district's per capita Contraction Of Tax Base, Follows Rapid debt levels are well in excess of levels expected for a Growth Early In The Decade county of this Am Debt service represents nearly Hotel and resort development, including high-end 10% of operating expenditure& development such as new projects for the Ritz-Carl- Concerto 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 amortized over 20 years. As is However as the impact of the national recession hit common in Hawaii, however, initial principal amorti- the tourism market and as agriculture continued to zation has been deferred three years. The county show the effects of growing international competi- does not have any additional borrowing plans for the tion, tax base appeals doubled in 1994 with 7.8% of next three years. Debt burden is moderated by the the tax base under appeal. As it result, the overall tax high value of property with little associated popula- base declined by 1.8% in 1995 and 0.1% in 1996. tion - for example, large agricultural holdings and While these declines are very small compared to the resorts - which help to moderate the debt levels as a rapid growth of the prior half decade, this rapid percent of the tax base. 02/09/96 10:36 TY415 274 17ZU JnLAxUVr-sVVU1 a WJUUD/VI% ' BZ/86f% 17:84:87 03-4888-> 415 274 1726 -{y's Investors Page 884 Gwwal Obligation/Special Tax February 5, 1996 3 Hawaii County, Hawaii Agriculture In Transition And Resort Industry in the sugar industry have also contributed to sonic of DeVelOPRV the highest unemployment levels in the state, with its varied geography, ranging from alpine Recent runway expansion and the development of mountain meadows to lush, wet rain forests. the new resorts on the island's Kona - or western - coast, island has had a wide range of agricultural products. has contributed to a growing tourism industry. The Famed internationally for its Kona coffee, the island's unspoiled scenery and the availability of island's historical agricultural mainstays have been large parcels of land have helped to fuel the develop- sugar and ranching. While the island continues to ment of large, high-end resorts. The runways are supply nearly two-thirds of the state's beef produc- now able to accommodate wide body jet service from lion. the sugar industry has been declining rapidly. the mainland U.S. and negotiations are underway to Two plantations have closed in the past year and the provide direct international service: currently inter- last plantation is due to close in the next year. Other national visitors must fly through Honolulu. The agricultural products have stepped in to replace some islands mow-peaked mountains have attracted asuo- of the lost production, including Macadamia Nuts nomical and meteorological research facilities and and exotic nowem However, it will be sometime the islands' active volcanoes are a unique tourist before the 64,000 acres devoted to sugar production attraction, in 1990 are fully absorbed for new uses. The layoffs sale Inlomx9lon: Legal Name of Issuer. County of Hawaii, Hawaii. Key Contacts Date of Bonds: February 1, 1996. Chet Rnanclal Officer: Harry A. Takahashi. Finance Director. security: General obligation, unlimited tax. Under Bond Counsel: Hawkins. Delatield ,t Wood, the State Constitution, debt service is a first charge New York. on the county's General Fund and the county is Auditor: Deloitte & Touche, LL-P, Honolulu obligated to levy unlimited ad valorem taxes to pay (FY 1995). such debt service. Registrar: Hawaii County Director of Finance. 0 Purpose of Borrowing: F1nnd public improvements paying Agent: Hawaii County Director of authorized in the fiscal 1994, 1995, and 1996 Capital Finance, m Budget ordinances. 0 Bock per. Th. n pojm Tom C.Vmy. N« Yatc rating history: October 1940: A January 1938: Ana June 1938: Aa analyst: Nlkolai J. Sklarolf (415) 274-1741 02/09/96 1U: 37 0910 Z14 1lzb anl.atturr-mvvvt a , 02106/96 17:89:16 33-4080-> 415 274 1726 -^49's Investors Page 087 6 General Obligation/Special Tax February S. 19% Hawaii County, Hawaii Retirement System contributions (fiscal year ending 6/30 $000) State System County System Year Contrlbutlons % Change Payments to Retirees 1991 4,139 300 1992 4,103 -0.9 282 1993 7,749 88.9 270 1994 10,445 34.8 249 1995 6,327 -39.4 226 1996 Q 10,200 61.2 - 1997 m 14,100 38.2 Somce: OSaud 8meaen..d Bt*vt Doeawne fil Projected. ®In.ddidvn mevn.ilw.tiau m ehe 8me tedrtanwx ey.rua the eanwy ugh.. pym.m w fm w.ploy..e wlw.wa.dpim w tM ine.pdan deM Sme 9yeeen Employee Trends (Number of employees) Total Year Full Time Part Time Staff % Change 1994 2,155 292 2,447 - 1995 2,181 289 2,470 0.9 1996 0 2,193 292 2,485 0.6 S.: Canny Budges mProjeaed property Hawaii County vaklation and Fiscal Assessed % Tax Rate/ levy Collected- tax data: Year Valuation (5000) M Change $1,000 A.V. ($000) Current Total 1987 54,416,615 1.4 $9.19 $40,591 96 104 1988 4,591,893 4.0 9.09 41,721 97 103 1989 059,334 5.8 9.12 44,334 97 102 1990 5,508,659 13.4 9.16 50,458 97 102 1991 6,299,590 14.4 9.08 57,216 98 103 1992 7,328,122 163 9.13 66,895 97 102 1993 © 9,220,301 25.8 8.88 81,883 92 101 19949 10,812,348 17.3 8,54 92,317 92 97 1995[9 ®10,618,893 -1.8 8,46 89,889 91 102 1996 Q 10,611,589 -0.1 8.41 89,293 In process In process D Ara.wdvdu.am ie fw0 v.hatia. u 1000 of fhirmlut v.Lw, few exdeo.pdm vshadon k'L'64' 540.000 hmxovneee e.wupdm wd neon' ctizw exenpdoew,end500ofv.hwdawmgVmLA..e...dmmwuym Md. fie auwhe.vehw. wxh,n W.euepdm.f e5. U ,l.dti whid..re..w.wd m d.. b.u ef.SAvWuw%I ww, wddedksud.Svadnndhmdis nrtda 5096 ofiu wewd v.la. in eSdmUwd up.. ®671 pwpu y ax eppe.L 9d with ewep.ot w $279826.636 ofv~hw w3.00 of tobd ew• =WA. vdtr. ®1.210.p1ed. fm 5838.442843 w 7.896 of tM .w.ewd wb.e have Men fill 44.60 fim A. wp ter t.xpven. O 1.5M ppe.k fm $692.525.617 n 630 of the nd twx.bl. v.hw. ®1:34.pp.9. for $483.482.372 oe 4.S0 of dw ne. w" "J... * FW %h.a wf $12.13148im u d lwuwy L. 1995: lwm.q. 1. 1995 deh not ye..vnlldde. 02/09/96 10:38 TY415 274 1728 5atattUrr-M0001 a µyuu,ioi4 82/86196 17;12:82 MAW-> 415 274 1726 4y's Investors Page 889 g General ObUpationJSpec101 iaz February 5, 1996 Hawaii County, Hawaii economic Population: Howad County factors: Area % Change Year Population (sq ml) Density 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 0 4,028 30 30.7 14.9 9.8 1994 0135.500 4,028 34 12.6 Sa...: U.S. Cw Bm 0 LwAw =1990-idie ---hWa•-6-•ba.dwr--W' duemmw ma.ueu,m«.dwq,a m Cary waow.. 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 Housing Characteristics: Hawaii County State U.S. County 1980 1990 1990 1990 Population: 29.4 34.3 32.6 32.9 Median age * school age 21.5 20.8 17.8 18.2 * working age 59.2 58.8 63.4 61.7 90 65 and over 10.2 12.5 11.3 12.6 No. persons/household 3.1 2.9 3.0 2.6 Income: Medial familyincome $19,132 $33,166 $43,176 $35,225 13 % below poverty level 13.2 14.2 8.3 .1 Per capita income $6554 $13,1¢9 $15,770 $14,420 Housing: % vacant 4.2 3.3 3.0 90 owner occupied 60.6 61.1 53.9 64.2 % built before 1939 20.2 10.8 6.7 18.4 % built since last census 47.2 35.1 20.8 70.7 Owner occupied median value $70,300 $113.000 $245,300 $79,100 !Median gross rent $266 $490 $650 $447 Occupied housing units 29,237 41.461 Sauc.: C.S. c.n B. 02/09/96 10:38 '6415 274 1726 SKL41H0hP'-XUUUY'S QVUO/V14 82/06/96 1785;48 553-4800-> 415 274 1721. 7dy's Investors Pege 005 4 General OblWhon/Special Tax February 5, 1996 Hawaii County, Hawaii debt factors Debt Statement a6 of 2/1/96 ($000) Amount Bonded debt outstanding $114.981 Current offering (2/6/96) 30,000 Gross banded debt $144,981 Leases 1,924 State Revolving Fund Loans 18,564 Note - U.S. Government M 1,222 Gross direct debt $166,691 Less: G.O. - Self-supporting from Department of Water Supply 14,732 Net direct debt $151,959 Overlapping debt Special assessment bonds 13,050 Overall net debt $165,009 Saow: F nnwd Aweoen..OEui.1SeWO.nwAM-dr'.SI».. MPwo.+HamAdn6i.oed., nft3*3.pembw2M. Pa dditlmnlie,hwudon pl.w..rre'm Moody*# 1995 AhniePd ud novenvnacMr„t•L Defaults: None recorded. Debt Ratios: Rate of Retirement ($WD): Net Per© % ® Median Principal Amount % of Debt Capita Median C3 F.V. m Amount Due M ($000) Total Direct $1,121 S 218 1.4 0.6 Ins years S 30,952 21.3 Overall 1,218 901 1.6 2.2 In 10 years 72,470 50.0 01995moamforo=6w.ithpV"im100.ooon,249.999. In 15 years 112,393 77.5 11 Bo.don..damsd1994popW dm of 1353(10. al hobd..onMkom ®B..donmem.bt.I+ehmof$IQ6h ion f.R XW'uendmaot nveddd. 6a 1996. Structure: Current issue scheduled to be amortized Borrowing Restrictions: Constitution limits funded rapidly through 2016. All debt due to be repaid by debt to 15% of net assessed valuation. Net assessed 2016, with the bulk repaid by 2013. value excludes exempt valuation and 50% of valua- CIP/Future Borrowing: The County's six-year CIP tion an appeal. Funded debt excludes reimbursable calls for $17.6 million of improvements in fiscal and self-supporting general obligation bonds. Includ- 1996 and a total of 557.2 million of improvements ing outstanding and total authorized, unissued bonds, over the next six years. The county expects to borrow the city has used a small fraction of its constitutional $787,000 by issuing a general obligation to the fed- debt limit. eral government to fund wastewater improvements. The obligation will carry a below-market interest expense. UZ/UU/95 1U: 3U W410 Zt4 1/Zb baLAJ%Urr-a000r b % UUei U14 OZ/06Y96 17:87728 53-4888-> 415 274 1726 -4y's Investors Page 886 Gerlerd Obligation/Special Tax Febr=y S. 1996 5 Hawaii County, Hawaii admlinistrative Form of Government: Mayor-council system of ations on new contracts. White Collar, White Collar factors government; governed by provisions of County Char- Supervisor and professional and Scientific units have ter, effective January 1969 and subsequently contracts which expire at June 30, 1997, with the amended in 1979,198Z and 1990. Mayor elected to article on wages which may be reopened upon agree- four-year term; current Mayor elected to first term went by all parties. which expires December 2, 1996. With few excep- Pensions: All employees are covered by the State lions, the Mayor directly supervises all departments. Retirement System. Employee contributions are 7.8% Nme-member council. While previously elected at of compensation, except firefighters and police con- large to concurrent four-year terms. a Charter amend- tributions, which are 12.2%. County's share fluctu- ment approved in 1990 and which became effective sea each yew. The estimated cost for 1996 is $10.2 on December 7, 1992, provided for two-year term million, which is significantly higher than the $6.3 council members each elected from a single-member million for fiscal 1995. district. Provides full range of municipal services, Risk Management: The County is self-insured including police, fire and public prosecutor, sanita- with respect to general liability claims. Claims and lion, social services, culture and recreation, water suits have ranged from $381,344 in fiscal 1991 to supply, planning and zoning, and streets and high- $1.7 million in fiscal 1993. For fiscal 1995 the total ways. One of four counties in Hawaii, Hawaii com- was S 1,134,043. prises the large island latown as the "Big Island. There are no separate municipal governments. The Investments County al Fund, iris a cash and invest- state assumes responsibility for many functions Rent pool for the Generals Fund and Special two Revenue which are performed by local governments in other Finds, one Capital State Weight Agency states, notably schools and hospitals. The state does Rinds, Clearance ffunds. the Stt of ate W June 30eight Tax and Payroll not, however, impose a property tax. The County S58.7 funds. million, funds Department of Water Supply is semi-Autaromotrs, totaled d 55. Hawaii Revised d Statutes authorize Statu Public Employees: Represented by seven of the 13 Treasury, y, counties to invest in obligations of the U.S. Treasury, agencies and instrumentalities, time certifi- bargaining units representing public employees in the cates of deposit, batik repurchase agreements and state. Six of these units also represent state employ- bonds of any improvement district of any county of sea; public employer representation in negotiations the state, provided that the investments mature not are with the Governor, who has four votes, and each more than three years from the date of investment. of the four county mayors. Units representing Blue- The bulk of couurty funds are invested in bank repur- Collar, Blue Collar Supervisors, Firefighters and chase agreements. Police have negotiated contract extension on con- i- Legislation /Reterentla/Lttlgatlon vorx pending. re in riegot tracts that expired on June 30, 1995 and a 02/09/96 1040 '6`415 274 1726 SKLNiurT-aluuur a IWui u, uiy ~0Z/86/96 1718:37 73-4888-) 41S Z74 1726 ^49's Investors Page 800 General Obligolicn/Spedal Tax February 6, 1996 7 Hawaii County, Hawaii 1996 Full Valuation: m $10,611588,618 1996 F.V. Per Capita: $78,314 1996FqualiretionRaLe: 100.096 MOr.ar 1996....rdw~.an.1996FAv%hW1i,ear„eayva W1010A.. Average Annual Growth F.V., 1986.96: 09.3% m 10 yewa Average Annual Growth F.V., 1991-96: ®11.0% Osy- FY 1994 Largest Taxpayers austness F.V. ($000) % F.V. 0 B.P. Bishop Estate Land trust 350,109 2.7 Mauna Larli Resort Inc. Developer 189,471 1.5 LanpardM Associates Hotel 159,000 1.2 South Kohala Resort Corp. Developer 144,704 1.1 Mauna Kea Development Corp. Developer 125,569 1.0 Mauna Kea Beach Hotel Corp. Hotel 95,449 0.7 Waikolos Development Corp. Developer 90,985 03 Liliuokalani Trust Estate Land trust 90,092 0.7 Waikolon Land 8t Cattle Corp. Developer 83,092 0.7 Mauna Larti Bay Hotel, Inc. Hotel 76,646 0,6 Sean: C may d Hawad Real Iiopmy Tam4m 13,dJee pM a paeaa orroll~e4.. of slz.p6liair.. Property Tax Bose Composition (FY 1996) Ne1A.V. Tax Rate Net A.V. Tax Rate of per of per Taxable $1,000 of Taxable $1,000 of Told Net % of % of Tax Red Property Class Buildings AV. Land AV. A.V. ($000) Total A.V. Burden0 bnproved residential $68$,883 $830 $1,117,161 $8.50 $1,803,044 17.0 17.2 Agricultural 697,709 8.50 2,096,588 10,00 2,794,298 26.3 30.1 Conservation 19,586 830 296,791 10,00 316,378 3.0 3.5 Hotel/Resort 440,835 830 435,758 10.00 876,593 8.3 9.1 Apartment 933,525 8.50 532,8.47 10100 1,466,372 13.8 14.9 Commercial 380,340 8.50 348.511 10.00 728,851 6.9 7.5 Industrial 193,408 8.50 207,870 10.00 401,279 3.8 4.2 Unimproved residential 30,342 830 379,090 10.00 409,432 3.9 4.5 Homeowner 739,411 4.45 1,075,930 4.45 1,815,342 17.1 9.0 Total 4,121,039 - 6,490,548 10,611,588 100.0 - Sodae: Hawaii Campy end Moody'. calmImu.u alRffecd.,aly A pmpaty darn help mb.idu. e,. Ivcnw i .%w pd., Thi.diffre Semoawra%adn in Hawaii, wl.ne Imply -alana-ial -d--- .tmer.obddite rdd<rdal homvow.wasn.id..dal dr.r. UZ/ua/ 9d IU: 40 •O41J Z14 L1ZO JALAKUrr-aUVUr a *JUII/U14 8Z/0W% 17113;28 553-4808-> 415 274 1726 -)dy's Inuestars Page 010 General Obtigallan/Special Tax February 5, 1996 9 Hawaii County, Hawaii Labor Market Characteristics: Hawaii County Labor Total % Unemployed Year Force Employed County State U.S. 1992 63,502 58,564 7.8 4.5 7.4 1993 63,512 59,045 7.0 4.2 6.8 1994 64,841 58,034 10.5 6.1 6.1 10194 64,332 57,068 11.3 6.3 5.4 10/95 62,591 56,912 9.1 5.7 5.2 Se : Loaf Aw Un.utioy n<. S.d.dn (LAUS). Bmwa.dLah Sm4.daa. W,Wayadnrt....a ....arnr.ejuw. LAUS..lowswnirWn k..my 1994mce .po.Hydiffa fie dm..vu7ehk rormfiwpmad.. Per Capita Income Income % Change -County as % of Year County County State State U.S. 1979 $ 6,554 - 129.5 84.7 89.8 1989 13.169 100.9 103.7 835 91.3 Largest Employers 1995 Employer 8uslness Employees State of Hawaii Government m 7,000 County of Hawaii Government I D2,100 Hilton Waikoloa Village Retail/Hotel 1,300 C. Brewer & Co. Agriculture 1,182 U.S. Government Government m 800 Westin Mauna Kea Beach Hotel Resort 785 KTA Super Stores Retail/Hotel 776 Ritz-Carlton Reudl/Hotel 700 Mauna Lani Bay Resort Retail/Hotel 680 Sure Save Retail 455 S.nw: of iew MP.d,l .x. endkadso...m.a: employ 17,44ti eFdr myaloyad wld.ce. UZ/Ua/Uti 1U:41 '0410 Z14 1/Zb nrLLAKuVr-MuuVI Z. LN U1z/ U14 ' 82186M 17:14:5Z 53-4800-> 415 274 1726 dy's Investors Page 811 10 General Oblipalion/Special Tax February S. 1996 Hawaii County, Hawaii Employment Dkrrlbution by Sector O Hawall County State of Hawall 1980 % of 1990 % of % Change 1960 %01 1990 % of % Change Employment Category Employees Total Employees Total 1980-90 Employees Total Employees Told 1980.90 Resident work force 36,777 100.0 52,898 100.0 43.8 457,184 100.0 567,765 100.0 24.2 • Worked In County 35,028 95.2 52,030 98.4 48.5 447.067 97.8 563,772 993 26.1 _ Worked out of County 1.749 4.8 868 1.6 •50.4 10,117 2.2 3,993 0.7 -603 By Industry Sector. Alleculture® 4,272 11.2 5,437 10.0 27.3 14,793 3.6 16.832 3.2 13.8 Construction 3,477 9.1 5,153 9.5 48.2 29,888 72 42,071 8.0 40.8 Transportation ® 2-136 6.1 3,459 6.4 48.1 36,478 8.8 46,953 819 28.7 Wholesale and Retail trade 8,160 21.4 11,809 21.7 44.7 98,542 23.7 121.627 23.0 23.4 Finance© 2.174 5.7 2,810 5.2 29.3 31,648 7.6 39.506 7s 24.8 Busitlen and repair services 1,251 3.3 2.244 4.1 79.4 17,832 4.3 23,629 45 323 PersomlES 4,154 10.9 7,221 113 73.8 38,150 9.2 54,033 102 41.6 Public administration 2.771 7.3 3,164 5.8 14.2 41,573 10.0 42,950 8.1 3.3 Manufacturing 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 Educationprdfassionsals 3,090 8.1 4,421 8.1 43.1 31,989 7.7 40,750 7.7 27.4 (Kherprofessionals 1,588 4.2 2,992 5.5 88.4 18,984 4.6 32,602 6.2 71.7 9oacc U.9. Buwo dCnw l7 Budoaw,wa wavrr dopl°YrdPn>a~ 16 yeas oddds. 01neb~der fav.ny. Srhe.ia rdrm,d,Y. ®6ae4der ea~aaoAdan adp,blie Udli¢ew p lrvlder inwa+mcr ad.aal rwa. 9rndaYr ~aauhmra a,daaa.+dm ravi~.w Operating Funds FIncincial Performance itiecd years ended 6/30 $000) m Change- 1992 1993 1994 1995 1993-94 1994-95 Revenues $106,847 $117,440 9128,153 $133,804 9.1 4.4 Expenditures© 109,188 114,177 125,173 129,861 9.6 3.7 Operating surplus (deficit) 0 (1,262) 2,137 2,887 4,226 - - M Gaol Pad wADda 9avim Fund fue68d emud,nedwd of.eeaudig): UwIUdir„ aa,fas. ®0a %l Pad ady. IN Exrlaies 12.045.457 of capiul ]w. Va d. in 1992 $111.114 in 1991 ad $710.m0 of bo,d powadr in 1990. UZ/UU/Uti 1U:41 '0'913 Z14 1/Z3 aaf.nxurr-mvvvi a W ulvi U14 '82/86796 17:16:57 53-4080-> 415 274 1726 19's Investors Page 012 C,eneral obnpallon/Spectiai Tax February S. 1996 11 Hawaii County, Hawaii 1995 Sources of Revenue % 1995 Items of Expenditure % Ply taxes 68.2 Public safety 37.5 Intergovernmental 12.2 General Government 14.4 Transient Accommodations Tax ® 10.9 Debt Service 9.7 Interest 3.1 Culture and recreation 8.1 Miscellaneous 2.5 Retirement and pension benefits and Licenses and pemites 2.2 health fund 7.1 Charges for service 1.2 Miscellaneous 5.8 Fins and forfeitures 0.4 Health Fund 5.5 m Cow,y'sis.6% dim6udoo ftm, d,. elate of the a vride,wiet, Sanitation 4.6 m.^f6*.1V°'.°'"a"" y„' r° Health, education and welfare 3.8 ,..d, less a 50 w e69nLeavd a fee Capital outlay m 2.0 Mead.s aarofa. a °P'v P°Jab ~d General Fund Financial position (fiscal years ended 6/30 $000) 1992 1993 1994 1995 Cash and Investments $16,555 $21,162 $26.982 $29,131 Restricted cash $0 $0 $0 ($1,090) Operating loans 0 0 0 0 Other current liabilities m ® 12,962 17,530 20,881 19,379 Year-end cash surplus S 3.593 $ 3,631 $ 6.100 $ 9,751 Receivablesp $ 11085 ($183) $ 726 $ 1,920 Fund balance $11,389 $13.641 $16,512 $20,842 Undesignated fund balance 3,521 2,634 6,548 11 512 ONx,rdefcsect v e. 10 Wb.h.g reserved fm enaa,bw,esc $7.9 "'nimin 1993. Special Revenue Fuld financial position (fiscal years ended 6/30 $000) 1992 1993 1994 1995 Fuel tax $ 5.321 $ 5,349 $ 5,504 $ 5,613 Public utility franchise tax 2,531 2,615 2,851 3,216 Motor vehicle weight taxes 2,342 2,311 2,312 2,300 Total revenues M $13,356 $14,509 $15,788 $16,827 Highways and streets 5,331 5,259 4,627 4,690 Expenditures $13520 $14,401 $14,641 $15,031 Surplus (Deficit) (164) 108 1,147 1.796 Fading fund balance S 1,966 $ 2,074 $ 3.221 $ 5,017 M Spem.lie ue Ends emtevt pi,o+ly of Highway Fond. but.lao ierludes Pavtm,S WearF,d. S-Ww Fwd Bik.w.r Fwd Cuuatay Fvai avid Beaua6,adm Fwd 82/06 % 17:19:25 Z12-553-4000-> 415 274 172r Moodg's investors page 913 12 General Obiipatlowspecial Tax Febnlary 5, 19% Hawaii County, Hawaii Selected Tax Revenue History ((kcal year ending 6/30 $000) Public Motor URRty Vehicle Property % % Fuel % Franchise % Weight % Year _ Tax Change T.A.T.p Chance Tax Change Tax Change Taxes Change 1991 $59,132 14.5 $10,588 -21.1 $5,269 33 $2,231 17.4 $2,312 7.3 1992 67,922 14.9 014,237 3A5 5,321 1.0 2,531 13.4 2,342 1.3 1993 79,000 16.3 14,138 -0.7 5,349 0.5 2,615 33 2,311 -1.3 1994 89,537 13.3 13,266 -6.2 5,504 29 2,851 9.0 2,312 0.1 1995 91,200 1.9 14,627 10.3 5,613 2.0 3,215 12.8 2,300 -0.5 1996 ® 88,051 -3.5 - - 6200 10.5 3,000 -6.7 - _ Smwn: AudbdFmwdnl Smrmwns al Comoy-o rhea of See-wide Tuamm, Awmmodm ono Tenn. mAefL loner in dw eDoadon of dm auw6wu mxunuadrdam ms. m Bhailw General Fund update (tisoal years endhlg 6/30 $000) 19941D 1995 0 19960 Property tax $ 89,537 $ 91,200 $ 88,051 Licenses/Permits 2,665 2,994 3,264 Intergovernmental 30,229 31,302 29-596 Charges for current services 1,498 1,613 1552 Revenues $132,490 $131,924 $131542 m Adh. m Badgrt 3298R01 ¦ a Co 1996 by hioaiy'a Lrveams Setvia. Inc.. 99 Cinch Sttem New Yak. New Yank 10007. AR its ascved. ALL INFORMATION CONTAINED HEREIN IS COPYRIGHTED IN THE NAME OF MOODY'S INVESTORS SERVICE, INC. ("MOODY'S"), AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, RRPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSE31INATED, REDISTRIBUTRD OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MRANS WHATSOEVER, BY ANY PERSON W ITHOUT MOODY'S PRIOR WRITTEN CONSENT. All infim.dm cawnwd Imain is abudned by MOODWS $om eonwcee belirmd by in m be ewewe and reliable. Became of dm powibiRry of human a medunini rya u well u aver Sacs. however such k&awdmt is p uvided-win- widow wcamy of my kind ndMOODY'S. in pudenUr. makes mrepoommim ar espmar a iopljd, ere m the nanamy, timelinen. ampletmem nandw biliry of A for p of mdh irdmnhhfim Undo m ehemutetrw rhaB MOOD Shave my ' ry m my person a amity fa (e) any Ian a 6a rge in whole a in pct caurml y4 anilt4g 6vm a la mrng m. my ma (neSRgoe a odmwire) a W" drewwmna a cm agency witldn a mside dw amol of MOODY'S a of its dirm um offiaeaa, s a qmw in connection with do pmamnmt. alleedm rannpinon eel Pub delive erry ach idamrtion. a (b) any dial Yria uftP daa roumhrdahdm. Enhdm a ry of s epKOl. aQequehtieL taotpenrhmrY or incidental dam w ages whomever (ioduditg wi tlnta finhitetlaa lortpnaCw). ever if MOODY'g u edvisd m advance of the ponildlity of anelh darosga, neaddhtg Som rim un of a hnabi1y mummy such hdemrrion- Tlu audit retires. if wry. anadmung pct of do infamedon canteirnd beta era and trout 4 eommed s hha acemens of opmm and not amWhcner of ficr or seaauwdetimm m padwe, oB a hold my seanitka, NO WARRANTY, g~R$gg OR RyPWED, Ag 70 'TlD1 ACCURACY, TIMELINE68, COMPLRTEMS, Fl'INBSo FOA ANY PARTICULAR PC'RP088 Op ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE MEACHANTABU.ITY OR BY MOODY'S Df ANY FORM OR MANNER W HATSOEVEA. Each Virg a otra opinion wm be weiShd solely a one fsaa in any invswwnetd decrim suede by a m Whelf ofery mtr of do khfosmedm e mmkhd herdhh. end each nub asamm a suds kr own s¢dy end eveknedm of emir «nniry and of each firma erhd nrmtorof. and earh pwide of . chip fa. eMih seau(ry dad it coy emeido pmdw , h a selEng, Anmea m Seetim 17(b) of the Seauiuee Act of 1933. MOODY'S herby dimlonas dhc ma ismas of debt wanitiea (inchrEng capaeo and emttieipel bmdr, ddxntnees, mss end commetciel paper? wad sunk mud by MOODY'S have. pea to us s., of my umug. agred m pay m MOODY' [a appaisd and sting services entered W k ice atvitw frmu SI.000 m S7St1.000. COUNTY OF HAWAII Statement of Funded Debt July 1, 1998 1. Total Principal Amount of County Bonds Outstanding and Unpaid: a. County General Obligation Bonds $164,107,500 (Schedule A) b. Special Assessment Bonds 12,255,000 (Schedule B) c. Other Indebtedness 1,159,837 (Schedule C) d. State Revolving Fund Loans 29.030.743 (Schedule D) Grand Total of Bonds Outstanding and Unpaid $206.553.080 2. Exclusions from Grand Total: a. General Obligation Bonds maturing $ 7,200,500 in current fiscal year (Schedule A) b. General Obligation Bonds for 30,900,000 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 1,455,741 maturing in current fiscal year (Schedule D) e. General Obligation Bonds 12,809,000 Reimbursable by the County Department of Water Supply (Schedule E) f. Pro Rata Share of 1978 8,291,517 Refunding Bonds for which funds are deposited in Invested Sinking Fund (Schedule F) Total Exclusions $ 72 911.758 Net Funded Debt of the County of Hawaii at July 1, 1998 SUPPORTING SCHEDULES Statement of Funded Debt as of July 1, 1998 (Based on Records in Finance Department) Schedule A County General Obligation Bonds: Principal Amount General Obligation Outstanding Bonds Maturing in July 1 1998 Current FY a. Advance-refunded bonds for which full payment irrevocably set aside: June 1, 1989 7,815,000 440,000 June 1, 1990 23,085,000 1,290.000 Sub-Total $30,900,000 $ 1.730.000 b. Other General Obligation Bonds: June 15, 1977 309,000 16,000 May 15, 1978 20,075,000 1,720,000 June 1, 1981 542,000 19,000 December 1, 1989 5,500,000 900,000 May 1, 1993 72,025,000 3,305,000 February 1, 1996 30,000,000 1,075,000 March 12, 1996 736,500 27,500 February 25, 1997 3,878,000 128,500 June 4, 1998 142,000 9.500 Sub-Total $133.207.500 $7.200,500 Total County General Obligation Bonds L164.107.500 $ 8.930.500 Schedule B Special Assessment Bonds: Principal Amount Outstanding 8/01/91 Kaloko Subdivision (17) $12.255.000 Schedule C Other Indebtedness: Principal Amount Outstanding Kulaimano Elderly Housing Project Mortgage (FmHA) $ 1.159.837 Schedule D State Revolving Fund Loans: Principal Amount Principal Maturing Outstanding In Current FY Hilo WWTP Phase II $10,227,383 $ 570,345 Waiakea Houselot Sewer 370,693 20,672 Waiakea Mill Pond Sewer 1,097,320 56,621 Kealakehe Effluent Disposal 1,095,322 56,518 Alii Drive Interceptor A & B 2,517,648 127,034 Ainako Interceptor A & B 1,924,631 99,452 Alii Drive Interceptor C & D 3,217,478 154,395 Kalanianaole Collector Sewer 1,401,728 61,909 Waiaha Bay SPS 3,032,979 136,669 AM Drive Interceptor E & F 1,396,413 59,399 Holualoa Sewage Pump Station 2,749,147 112,727 $ 29,030,742 $ 1.455.741 Schedule E General Obligation Bonds Reimbursable by the County Department of Water Supply: June 1, 1981 $ 542,000 December 1, 1989 (Refunding) 3,250,000 May 1, 1993 8,875,000 June 4, 1998 142,000 $12.809.000 Schedule F Pro Rata Share of 1978 Refunding Bonds for which funds are deposited in Invested Sinking Fund: 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 $1161861613 Pro Rata Basis (Principal outstanding of $20,075,000/Principal outstanding plus Interest to Maturity of $7,008,252.50 74.12% Amount excluded $ 8,291,517