05-24-2010 SKCDP AC Minutes - Laserfiche WebLink

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2 1. CIP Budget Development Process by Council Pete Hoffmann Councilman Hoffman gave a carefully structured presentation. There are two budgets: Operating and CIP. The CIP budget comes to the County Council in March. It has no appropriations associated with it and is basically a wish list of projects various communities want to see happen. Projects get on the list via the area’s County Council representative. Each project has a detailed page devoted to it showing requirements from design to completion. The CIP is funded primarily by issuance of general obligation bonds, and also by grants or stimulus funds. Projects could be funded by developers’ fair share contributions; but this county still needs an impact ordinance. A possible other source of funds would be a facilities improvement district, not done here but utilized on the mainland. CIP priorities are compiled by districts and reviewed by the mayor and finance staff. A Councilmember who argues strongly can help a project rise up the list. Some projects are mandated, such as ADA improvements. Last year a $114 million bond issue funded a number of projects. The County of Hawaii has a very good bond rating. This year the County will fund about $50 or $60 million worth of projects. Presently debt service costs the County about 10.6 percent of total expenditures; he suggests the limit could be increased to 12 or 13 percent. Eligible projects may include land acquisition (but not solely to preserve land), infrastructure improvements, new buildings or additions to existing buildings. One-time renovation can be included, but not ordinary maintenance. Planning and feasibility studies are usually funded through general obligation bonds—for example, a plan to make the Waikoloa mauka/makai road three lanes with a roundabout. The impact on the Operating Budget is the debt service. If planning and design are on the CIP list, it doesn’t mean the project will necessarily be completed. Once a bond is floated, it must be completed. The CIP is a six-year program. The deadline for floor amendments this year is June 7. Submittals from the community need to be relatively cogent with a TMK and map, and some budget information. Pete Hoffmann looks to the AC as a catalyst, a group that will seize the initiative. The current CIP budget is online. He encouraged the AC to initiate and take action on a regular basis during a fiscal year. He would much rather have requests come from the AC than from himself. He wants to have the community see the AC as an active body working in this area and helping to get the CDPs validated. Allen Salavea stated that, in terms of developing priorities for the 2011-2012 CIP budget, it’s best to begin as soon as possible. REPORTS