COM 0756.005 1996-1998 - Laserfiche WebLink

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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 - - - - 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