The URL can be used to link to this page

Home My WebLink AboutCOM 0151.004 2012-2014 :I.•+tYOfp �p:�'` � +,,'. Walter K.M.Lau " ,, '�'�i Managing Director William P. Kenoi - .:6-....!!:;,---4...,- Mayor '-___. ?'�' ?�' Randall M.Kurohara Deputy Managing Director County of Hawaii lair Ca Office of the Mayor 31 25 Aupuni Street,Suite 2603 • Hilo,Hawai`i 96720 • (808)961-8211 • Fax(808)961-6553 -<.-1 KONA: 74-5044 Ane Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawai`i 96740 .{ea(808)323-4444 • Fax(808)323-4440 C'7 1 "=r >an 9 May 2, 2013 par Iry Honorable Members of the County Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Aloha Council Members: Transmitted herewith is the amended Capital Budget for FY 2013-2014 submitted for your review and approval and the amended Capital Program for the next six years from FY 2013-14 to 2018-19. The amended Capital Budget includes 85 projects requiring a total appropriation of $231,992,000. 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$215,071,000 are intended to be funded in whole or part by bonds, $16,735,000 to be funded from Federal Grants Receivable, $86,000 to be funded by fair share contributions, and $100,000 to be funded by private contributions (see Table 1). Summary of Amendments The Capital Budget presented herein reflects the following amendments to the budget presented on February 28, 2013: • Addition of FY No. 2013002, "Repair/Replacement of Wastewater Facilities": $2,000,000 • Removal of"Lono Kona Improvement District" (previously FY No. 2013009): $5,000,000 • Change in scope and name of FY No. 2013058, "Kalanianaole Trailways Improvements," to also include "Hilo Harbor entrance to Banyan Way" • Addition of$66,000 in Fair Share funds to FY No. 2013063, "Manono Street Improvements" NS—II `31■■ LFD� Dr' �Cinty of Hawaii is an Equal Opportunity Provider and Employer Comm. No. I Ref.To: 3 Ref. Data 7 ' 1 I Honorable Members of the County Council May 2, 2013 Page 2 • Shift in County and Federal funds for FY No. 2013068, "Ali'i Drive Culvert Replacement" • Removal of"Ulu Wini Homes Expansion" (previously FY No. 2013079): $750,000 • Addition of FY No. 2013082, "Pahoa Regional Town Center Master Plan" (implements Puna CDP): $150,000 • Addition of FY No. 2013083, "Mamalahoa Bypass Scenic Corridor Feasibility Study": $125,000 • Addition of FY No. 2013084, "Volcano Village Center Master Plan" (implements Puna CDP): $100,000. These amendments result in a net 1.41% decrease in the FY 2013-2014 Capital Budget. 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, the resulting total debt service is estimated at 9.66%of the general expenditures. If all debt that has been authorized by the County Council was issued, the debt service percentage would be 12.23% 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 Honorable Members of the County Council May 2, 2013 Page 3 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. 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. 5 Honorable Members of the County Council May 2, 2013 Page 4 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$86,000 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 WK: \\Coh33\planning\public\CIP\CIP FY 13-14\May Submittal\Mayor Message\CIP MAYOR'S LETTER 5 02 13.doc 6