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William P.Kenoi <br /> .+ _'!�,; !�� William T.Takaba <br /> Mayor -t _ Managing Director <br /> J.' <br /> Walter K.M.Lau•County of H a w a i I Deputy Managing Director <br /> Office of the Mayor <br /> 25 Aupuni Street,Suite 2603 • Hilo,Hawai`i 96720 • (808)961-8211 • Fax(808)961-6553 <br /> KONA: 74-5044 Ane Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawai`i 96740 <br /> (808)323-4444 • Fax(808)323-4440 <br /> May 3, 2012 c) <br /> CD <br /> Honorable Members of the County Council <br /> County of Hawai'i I —1 <br /> 25 Aupuni Street w <br /> Hilo, HI 96720 r <br /> Aloha Council Members: y �� <br /> Transmitted herewith is the Capital Budget for FY 2012-2013 submitted for your review and <br /> approval and the Capital Improvements Program for the next six years from FY 2012 - 13 to <br /> 2017- 18 for your information. The Capital Budget includes 64 projects requiring a total <br /> appropriation of$171,764,000. <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 approximately $96,945,000 are intended to <br /> be funded in whole or part by bonds, $35,451,000 to be funded by State CIP and Revolving <br /> Fund Loans, $38,336,000 to be funded from Federal Grants Receivable, $225,000 to be funded <br /> with private contributions, and $807,000 to be funded by fair share contributions (see Table 1). <br /> Debt Service <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% 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 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 /> County of Hawaii is an Equal Opportunity Provider and Employer <br /> Comm. No. �• I <br /> 3 Ref. To Gau. • <br /> �,/�i <br /> ■ 9 8 ,D va- 2� Ref. Dote MAY 0 7 2012 <br />