Storm surge
Kate was the first hurricane to make landfall in the Florida Panhandle since Hurricane Eloise in 1975. In the region, the hurricane dropped heavy rainfall along its path, peaking at in Panama City. While moving ashore, Kate produced an storm surge at Cape San Blas, causing beach and dune erosion in Gulf County. Storm surge flooding left 150 houses uninhabitable in Wakulla County. The hurricane damaged a bridge to St. George Island that had been rebuilt after Hurricane Elena, and large portions of U.S. Routes 90 and 98 were washed out or damaged. Just two months after Elena ravaged the Apalachicola Bay shellfish harvesting industry, Hurricane Kate destroyed remaining oyster beds, leaving many oystermen in the area without jobs.