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<br /> <br />Wil Okabe <br /> <br />Managing Director <br /> <br />Harry Kim <br />Mayor <br /> <br />Barbara J. Kossow <br /> <br />Deputy Managing Director <br /> <br /> <br /> <br />Office of the Mayor <br />25 Aupuni Street, Suite 2603 96720 (808) 961-8211 Fax (808) 961-6553 <br />KONA: 74-5044 lole Hwy., Bldg C Kailua-96740 <br />(808) 323-4444 Fax (808) 323-4440 <br /> <br />May 3, 2019 <br /> <br />Honorable Members of the County Council <br /> <br />25 Aupuni Street <br />Hilo, HI 96720 <br /> <br />Aloha Council Members: <br /> <br />Transmitted herewith is the Capital Budget for FY 2019-2020 submitted for your review and <br />approval and the Capital Program for the next six years from FY 2019-2020 to 2024-2025. The <br />Capital Budget includes 60 projects requiring a total appropriation of $238 million. <br /> <br />CǒƓķźƓŭ {ƚǒƩĭĻƭ <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 $98.9 million are intended to be <br />funded in whole or part by bonds, $89.5 million to be funded by the State Revolving Loan Fund <br />or State CIP, $48.8 million to be funded by federal, $0.33 million to be funded by private grants, <br />and $0.49 million to be funded by fair share contributions (see Table 1). <br /> <br />5ĻĬƷ {ĻƩǝźĭĻ <br />Every year, we strive to present a budget that is fiscally constrained (in terms of prudent debt <br />service planning) and selective based on rational criteria. The Government Finance Officers <br />Association, a professional organization of government officials, recommends a prudent debt <br />service limit to be 15 (fifteen) percent of general expenditures. <br /> <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 coming <br />fiscal year includes debt service for short term bond anticipation notes, which are used to <br />reduce carrying cost and insure that cash will be available for projects as needed. As budgeted, <br /> <br /> <br /> <br /> <br /> <br /> <br />3 <br /> <br />