HomeMy WebLinkAboutCOM 0605.001 2010-2012 William P.Kenoi
.+ _'!�,; !�� William T.Takaba
Mayor -t _ Managing Director
J.'
Walter K.M.Lau•County of H a w a i I Deputy Managing Director
Office of the Mayor
25 Aupuni Street,Suite 2603 • Hilo,Hawai`i 96720 • (808)961-8211 • Fax(808)961-6553
KONA: 74-5044 Ane Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawai`i 96740
(808)323-4444 • Fax(808)323-4440
May 3, 2012 c)
CD
Honorable Members of the County Council
County of Hawai'i I —1
25 Aupuni Street w
Hilo, HI 96720 r
Aloha Council Members: y ��
Transmitted herewith is the Capital Budget for FY 2012-2013 submitted for your review and
approval and the Capital Improvements Program for the next six years from FY 2012 - 13 to
2017- 18 for your information. The Capital Budget includes 64 projects requiring a total
appropriation of$171,764,000.
Funding Sources
Capital projects are typically funded by debt (bonds, State Revolving Fund loans), revenue
sources (fuel tax, other special revenues), state grants, federal grants or loans, and other
financing options (fair share contributions or special financing districts). The Capital Budget
presented herein includes capital projects of which approximately $96,945,000 are intended to
be funded in whole or part by bonds, $35,451,000 to be funded by State CIP and Revolving
Fund Loans, $38,336,000 to be funded from Federal Grants Receivable, $225,000 to be funded
with private contributions, and $807,000 to be funded by fair share contributions (see Table 1).
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,
County of Hawaii is an Equal Opportunity Provider and Employer
Comm. No. �• I
3 Ref. To Gau. •
�,/�i
■ 9 8 ,D va- 2� Ref. Dote MAY 0 7 2012
Honorable Members of the County Council
May 3, 2012
Page 2
the resulting total debt service is estimated at 8.93%of the general expenditures. If all debt
that has been authorized by the County Council was issued, the debt service percentage would
be 11.36%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. Nonrecurring rehabilitation, remodeling or expansion of infrastructure and buildings;
5. Planning,feasibility, engineering,or design studies related to capital improvement
projects;
6. Information and communications technology infrastructure.
Tables
Five (5)tables were created to provide a summary of capital budget projects in different
formats:
Table 1. List of Projects and Proposed Funding Sources includes proposed projects that are
requesting funds for this fiscal year,what makes them eligible as a capital project,
location, council benefit district, funding source, 6-year forecast of funding needs
and total project costs.
Table 2. Capital Project Eligibility List categorizes projects by their eligibility.
Table 3. Location of Project by Council District indicates the Council District that the
project is located in.
4
Honorable Members of the County Council
May 3, 2012
Page 3
Table 4. Council Benefit Districts identifies all the council districts that will actually benefit
from a particular project.
Table 5. Six-Year Capital Program FY 2012-2013 to 2017-2018 lists all projects proposed by
a department and provides the projected funding forecast for the next six fiscal
years and total estimated project cost. This list includes projects that do not
require funding this FY but forecast a funding need within the upcoming six years.
Project Data/Financial Impact Statements
This document organizes the proposed projects in sections by County Departments. The first
document in each section is A Summary of Department Requests for FY 2012-2013. Following
the Summary are the individual Project Data/Financial Impact Statements, which include
information about the lead County agency, location, project description, Council benefit
districts, project consistency with long range plans, impact on operating budget, sustainability
focus, project readiness, etc.
Fair Share Contributions
A Fair Share Annual Report as of June 30, 2011 was submitted to the County Council in January
2012. This document provides information on the total fair share contributions and
appropriations to date as well as a summary of funds available for capital improvements. At
this time, there are two requests to fund a portion of a project's cost using fair share
contributions. However, separate appropriation requests may be approved by ordinance
during the year. We have and will continue to strongly encourage the use of fair share
contributions to fund CIP projects when possible.
We ask for your favorable consideration of this Capital Budget and Program.
Aloha,
..) ,. .)....., ___
William P. Kenoi
MAYOR
\\Coh33\planning\public\CIP\CIP FY 12-13\May 5 submittal\CIP MAYOR'S LETTER 5.3.12.docx
5
(This Page Intentionally Left Blank)
6