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0‘110-1- <br /> � Y OF y4(y. <br /> Lee E.Lord <br /> * -%%��fJ Managing Director <br /> Mitchell D.Roth <br /> Mayor ""tip, Robert H.Command <br /> F o F Hp Deputy Managing Director <br /> (County � -�• I <br /> ®f trE I f tip 4L .ar <br /> 25 Aupuni Street,Suite 2603 • Hilo,Hawaii 96720 • (808)961-8211 • Fax(808)961-6553 <br /> KONA: 74-5044 Ane Keohokalole Hwy.,Bldg C • Kailua-Kona,Hawaii 96740 <br /> (808)323-4444 • Fax(808)323-4440 <br /> March 1, 2021 <br /> hs -lk <br /> Honorable Members of the County Council <br /> County of Hawaii' <br /> 25 Aupuni Street <br /> Hilo, HI 96720 . <br /> Aloha Council Members: <br /> Transmitted herewith is the Capital Budget for FY 2021-2022 submitted for your review and <br /> approval and the Capital Program for the next six years from FY 2021-2022 to 2026-2027. The <br /> Capital Budget includes 66 projects requiring a total appropriation of $188.78 million. <br /> Funding Sources <br /> Capital projects are typically funded by debt (bonds, State Revolving Fund loans), revenue <br /> sources (fuel tax, other special revenues), state grants, federal grants or loans, and other <br /> financing options (fair share contributions or special financing districts). The Capital Budget <br /> presented herein includes capital projects of which about $129.56 million are intended to <br /> be funded in whole or part by bonds, $3.1 million to be funded by Federal Grants, and <br /> $56.12 million to be funded by the State Revolving Loan Fund or State CIP (see Table 1). <br /> Debt Service • <br /> Every year, we strive to present a budget that is fiscally constrained (in terms of prudent <br /> debt service planning) and selective based on rational criteria. The Government Finance <br /> Officers Association, a professional organization of government officials, recommends a <br /> prudent debt service limit to be 15 (fifteen) percent of general expenditures. <br /> The lower the interest rate and the greater the revenues, the more can be borrowed while <br /> staying within the prudent debt service limits. The proposed operating budget for this <br /> coming fiscal year includes debt service for short term bond anticipation notes, which are <br /> used to reduce carrying cost and ensure that cash will be available for projects as <br /> needed. As budgeted, the resulting total debt service is estimated at 8.99 percent of the <br /> general expenditures. If all debt that has been authorized by the County Council was <br /> issued, the debt service percentage would be 13.01 percent of the general expenditures. <br /> Comm. N . X04 <br /> Ref. To: �C► <br /> • <br /> :, l Ref. Date MAR - 2 '2021 <br />