The refinancing increases the county's total debt to $2.09 billion from $2 billion over 30 years. The bond term is five years longer than the previous term. Most of the interest payments will be made at the end of the term, adding to the county's debt.
New figures released by county comptroller Martha Hayne show hotel room fee revenue (5% of the room rate) haven't been rising at an average 3% per year as initially projected by the county in 1998. At that time, the county pledged future tourist tax collections against the construction cost of the center's expansion because existing tourist tax revenue couldn't cover the expense.
Up until the late 1990s, tourist tax revenue was climbing an average 8% annually, then began dropping in the past two years because of a slowing economy, country figures show. The county has the option of refinancing its debt load again at more favorable interest rates when the economy strengthens.
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