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Home My WebLink AboutCOM 0144.000 2014-2016William P. Kenoi Mayor Walter K.M. Lau Managing Director Randall M. Kurohara Deputy Managing Director 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, Hawai'i 96740 (808)323-4444 • Fax(808)323-4440n February 27, 2015 Honorable Members of the County Council _ County of Hawai'i J, 25 Aupuni Street N Hilo, HI 96720 Aloha Council Members: Transmitted herewith is the Capital Budget for FY 2015-2016 submitted for your review and approval and the Capital Program for the next six years from FY 2015-2016 to 2020-2021. The Capital Budget includes 37 projects requiring a total appropriation of $81.67 million. 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 about $55.94 million are intended to be funded in whole or part by bonds, $25.23 million to be funded by the State Revolving Loan Fund, $500,000 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 percent 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, ^ Q \ County of Hawai'i is an Equal Opportunity Provider and Employer ` �[✓✓ 1 dam_ 61 Comm. No.� 1144 3 Ref. To: FC. Ref. Dote MAR.Q 2 015 Honorable Members of the County Council February 27, 2015 Page 2 the resulting total debt service is estimated at 7.86 percent of the general expenditures. If all debt that has been authorized by the County Council was issued, the debt service percentage would be 12.12 percent 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 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, six-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. Honorable Members of the County Council February 27, 2015 Page 3 Table 4. Council Benefit Districts identifies all the Council districts that will benefit from a particular project. Table S. Six -Year Capital Program FY 2015-2016 to 2020-2021 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 2015-2016. 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, 2014 was submitted to the County Council in January 2015. This document provides information on the total fair share contributions, appropriations, and funds available for capital improvements. At this time, there are no projects proposed to use 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, r William P. Kenoi, Mayor \\COH33\p1anning\public\CIP\CIP FY 15-16\March 1 submittal\CIP MAYOR'S LETTER 2 27 15.doc :417 COUNTY OF HAWAII ,. .14 -1": STATE OF HAWAII • 'r�r�•oi'M�r` BILL NO. 29 ORDINANCE NO. DRAFT 1 AN ORDINANCE RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2015 TO JUNE 30, 2016. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. The following amounts to be received from the sale of general obligation bonds, and other sources are hereby appropriated to the projects and for the purposes designated in Section 2. CAPITAL PROJECTS FUND Funding Source Amount State Revolving Loan Fund $25,232,000 General Obligation Bonds, Capital Projects Fund Balance and/or Other Source $55,935,000 Private (Grants) $500,000 Total $81,667,000 Section 2. The monies to be provided from the sources specified in Section 1 shall be appropriated for the purposes and in the amounts as follows: [The remainder of this page is intentionally left blank] 7 FY NO. PROJECTS APPROPRIATIONS (in thousands) STATE REVOLVING LOAN FUND 2015002 Kealakehe Effluent Reuse - Makai 2,000 2015005 Na'alehu Wastewater System (Reapp. 5698.22) 4,485 2015006 Pahala Wastewater System (Reapp. 5698.23 and 5698.24) 12,000 2015007 North Kona Sewer (Reapp. 5696.44) 3,104 2015008 North Kona Effluent Reuse (Reapp. 5696.45) 3,643 Subtotal 25,232 GENERAL OBLIGATION BONDS, CAPITAL PROJECTS FUND BALANCE AND/OR OTHER SOURCES 2015001 Repair Hilo Outfall (Reapp. 5691.83) 1,000 2015002 Kealakehe Effluent Reuse - Makai 3,850 2015003 Repair/Replacement of Wastewater Facilities 2,000 2015004 Lono Kona Improvement District (Reapp. 5696.47) 600 2015006 Pahala Wastewater System (Reapp. 5698.23 and 5698.24) 700 2015009 Hilo Coating Rehabilitiation (Reapp. 5694.84) 400 2015010 Repair Hilo Digesters (Reapp. 5691.85) 500 2015011 Repair Pua Wet Well (Reapp. 5691.86) 400 2015012 Rural Transfer Station Replacement/Enhancement 2,000 Landfill Gas Collection and Control System at the WHSL 2015013 (Reapp. 5696.49) 2,200 2015014 South Hilo Landfill Closure (Reapp. 5691.82) 750 2015015 DPR ADA Compliance 5,000 2015016 DPR Repairs/Improvements to Facilities 10,000 2015017 Holding cell improvements (Reapp. 5299.77) 600 2015018 South Kona Police Station (Reapp. 5296.94) 4,600 2015019 East Hawaii Firing Range (Reapp. 5292.83) 600 2015020 DPW Facilities ADA Compliance 750 2015021 DPW Road Repair& Maintenance 6,000 2015023 DPW Facilities Renovation 600 East Hawaii Traffic Facility Repair/Renovation (Reapp. 2015024 5191.53) 200 2015025 Komohana Street Reconstruction 1,500 Kilauea-Keawe Street Resurfacing (Ponahawai St. to 2015026 Waianuenue Ave.) 2,000 2015027 Mamalahoa Highway (Route 19) Improvements 1,800 2015028 DPW Facilities Repair& Maintenance 2,000 2015029 DPW Facilities Hardening 800 2015030 DPW Facilities Hazardous Materials Mitigation 100 2015031 West Hawaii Traffic Calming Improvements (Reapp. 5389.04) 250 2015032 East Hawai'i Traffic Calming Improvements (Reapp. 5389.05) 250 8 FY NO. PROJECTS APPROPRIATIONS (in thousands) 2015033 AIi'i Drive Shoulder Improvements 800 2015034 DPW Facilities Energy Efficiency 1,300 2015035 Land Acquisition for DPW Facilities 100 2015036 La'aloa Avenue Extension 1,635 2015037 Micro-Unit Housing for the Chronic Homeless in West Hawaii 650 Subtotal 55,935 PRIVATE (GRANTS) 2015022 Mohouli Senior Housing Traffic Signal (Reapp. 5381.15) 500 Subtotal 500 Grand Total 81,667 SECTION 3. The Director of Finance shall open appropriate accounts for each project, make monies available, and expend funds for the projects listed herein. SECTION 4. The appropriation and authorization in Section 2 includes land purchase, plans, site preparation, equipment purchase, improvements to land, and construction. SECTION 5. The Mayor shall initiate authorized projects taking into consideration the factors of public need, general financial condition of the general fund, highway fund, sewer fund, parking meter fund, bikeway fund, beautification fund, vehicle disposal fund, solid waste fund, golf course fund, geothermal relocation revolving fund, housing fund, and fair share contributions as well as the County's general economic conditions. SECTION 6. Severability. If any provision of this ordinance or the application thereof is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are declared to be severable. 9 SECTION 7. As required by Section 10-6(a) of the Hawaii County Charter, the estimated cost of each capital improvement pending or proposed to be undertaken, the estimated operating cost, and the pending or proposed method of financing are set forth in the attached Project Data and/or Financial Impact Statement sheets. SECTION 8. This ordinance shall take effect on July 1, 2015. INTRODUCED BY: J71 COUNCIL MEMBER, COUN 0 HAWAII Hilo, Hawaii Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: REFERENCE: Comm. 144 { 10