BIL 040 Draft 02 2012-2014 - Laserfiche WebLink

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Honorable Members of the County Council May 2, 2013 Page 2 • Shift in County and Federal funds for FY No. 2013068, "Ali'i Drive Culvert Replacement" • Removal of"Ulu Wini Homes Expansion" (previously FY No. 2013079): $750,000 • Addition of FY No. 2013082, "Pahoa Regional Town Center Master Plan" (implements Puna CDP): $150,000 • Addition of FY No. 2013083, "Mamalahoa Bypass Scenic Corridor Feasibility Study": $125,000 • Addition of FY No. 2013084, "Volcano Village Center Master Plan" (implements Puna CDP): $100,000. These amendments result in a net 1.41% decrease in the FY 2013-2014 Capital Budget. Debt Service Every year, we strive to present a budget that is fiscally constrained (in terms of prudent debt service planning) and selective based on rational criteria. The Government Finance Officers Association, a professional organization of government officials, recommends a prudent debt service limit to be 15%of general expenditures. The lower the interest rate and the greater the revenues, the more can be borrowed while staying within the prudent debt service limits. The proposed operating budget for this coming fiscal year includes debt service for short term bond anticipation notes, which are used to reduce carrying cost and insure that cash will be available for projects as needed. As budgeted, the resulting total debt service is estimated at 9.66%of the general expenditures. If all debt that has been authorized by the County Council was issued, the debt service percentage would be 12.23% of the general expenditures. What is a Capital Improvement Project? A project is eligible for funding from the capital budget if it is a major nonrecurring expenditure, such as: 1. Land acquisition; 2. Infrastructure improvement other than buildings that add value to the land or improves utility (roads, drainage, sewer lines, parking, landscape or similar construction); 3. New buildings or structures or additions to buildings, including related equipment and appurtenances which are integral to the new structure; 4