Honolulu in debt despite thriving economy

‘Waikiki is flush with tourists. New high-rise condominiums are changing Honolulu’s skyline and jobs are plentiful. Property values have skyrocketed, with even modest homes now costing $550,000, and property taxes are at record levels. But amidst all that wealth, Honolulu is strapped for cash and making significant budget cuts.

“We’re in a serious situation here. We’re facing a major debt problem,” said Mayor Mufi Hannemann.

The city’s debt has surged to an estimated $3 billion, up from $1.89 billion owed in fiscal year 2000. Most of the debt was accumulated in the previous administration to pay for beautification projects installing new trees, signs, landscaping and parks. At the same time, sewer lines, roads and other infrastructure were neglected, and now major overhauls are required.’

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