HomeMy WebLinkAboutCOM 0151.000 2012-2014 ;�Tr^os!r ...
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William P.Kenoi *:A!r
Mayor
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Randall M.Kurohara
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County of Hawaii
Office of the Mayor
25 Aupuni Street.Suite 2603 • Hilo.Hawaii 96720 • (808)961-8211 • Fax(808)961-6553
KONA: 74-5044 Ane Keohokalole Hwy..Bldg.C • Kailua-Kona.Hawaii 96740
(808)323-4444 • Fax(808)323-4440
February 28, 2013
Honorable Members of the County Council
County of Hawai'i
25 Aupuni Street
Hilo, HI 96720
Aloha Council Members:
Transmitted herewith is the Capital Budget for FY 2013-2014 submitted for your review and
approval and the Capital Program for the next six years from FY 2013-14 to 2018-19. The
Capital Budget includes 83 projects requiring a total appropriation of$235,301,000.
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$214,176,000 are intended
to be funded in whole or part by bonds, $21,005,000 to be funded from Federal Grants
Receivable, $20,000 to be funded by fair share contributions, and $100,000 to be funded by
private 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 '
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Honorable Members of the County Council
February 28, 2013
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the resulting total debt service is estimated at 10.12% of the general expenditures. If all debt
that has been authorized by the County Council was issued, the debt service percentage would
be 12.76%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 categorizes projects by their eligibility.
Table 3. Location of Projects by Council District indicates the Council district where each
project is located.
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Honorable Members of the County Council
February 28, 2013
Page 3
Table 4. Council Benefit Districts identifies all the Council districts that will benefit from a
particular project.
Table 5. Six-Year Capital Program FY 2013-2014 to 2018-2019 lists all projects proposed by
an agency and provides the projected funding forecast for the next six fiscal years
and total estimated cost for each project. This list includes projects that do not
require funding next fiscal year but forecast a funding need within the following
five years.
Project Data/Financial Impact Statements
Proposed capital projects are organized in sections by County agencies. The first document in
each section is a Summary of Department Requests for FY 2013-2014. 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, 2012 was submitted to the County Council in January
2013. This document provides information on the total fair share contributions, appropriations,
and funds available for capital improvements. At this time, there is $20,000 request 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 capital projects when possible.
We ask for your favorable consideration of this Capital Budget and Program.
Aloha,
William P. Kenoi, Mayor
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