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William P. Kenoi <br />Mayor <br />Walter K.M. Lau <br />Managing Director <br />Randall M. Kurohara <br />Deputy Managing Director <br />County of Hawaii <br />Office of the Mayor <br />25 Aupuni Street, Suite 2603 • Hilo, Hawaii 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)323-4440n <br />February 27, 2015 <br />Honorable Members of the County Council _ <br />County of Hawai'i J, <br />25 Aupuni Street N <br />Hilo, HI 96720 <br />Aloha Council Members: <br />Transmitted herewith is the Capital Budget for FY 2015-2016 submitted for your review and <br />approval and the Capital Program for the next six years from FY 2015-2016 to 2020-2021. The <br />Capital Budget includes 37 projects requiring a total appropriation of $81.67 million. <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 about $55.94 million are intended to be <br />funded in whole or part by bonds, $25.23 million to be funded by the State Revolving Loan <br />Fund, $500,000 to be funded by private 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 percent 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 />^ Q \ County of Hawai'i is an Equal Opportunity Provider and Employer <br />` �[✓✓ 1 dam_ 61 <br />Comm. No.� 1144 <br />3 Ref. To: FC. <br />Ref. Dote MAR.Q 2 015 <br />