HomeMy WebLinkAboutCOM 0756.001 2016-2018 /0151-,,,f
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LC- �.,'', William Okabe
Managing Director
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Harry Kim ;I+'�F�� s� a/:*
Mayor -- - ' "
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Count of Hawaii
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 a n
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May 4, 2018
Honorable Members of the County Council _ 1-
County of Hawaii '7
25 Aupuni Street ,
Hilo, HI 96720
Aloha Council Members:
Transmitted herewith is the Capital Budget for FY 2018-2019 submitted for your review and
approval and the Capital Program for the next six years from FY 2018-2019 to 2023-2024. The
Capital Budget includes 46 projects requiring a total appropriation of$205.1 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 $126.1 million are intended to be
funded in whole or part by bonds, $77.3 million to be funded by the State Revolving Loan Fund
or State CIP, $0.38 million to be funded by federal, $0.07 million to be funded by private grants,
and $1.25 million 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 (fifteen) 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,
County of Hawaii is an Equal Opportunity Provider and Employer SG t
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Honorable Members of the County Council
May 4, 2018
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the resulting total debt service is estimated at 9.09 percent of the general expenditures. If all
debt that has been authorized by the County Council was issued, the debt service percentage
would be 12.38 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.
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 2018-2019. 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, 2017 was submitted to the County Council on January
26, 2018. This document provides information on the total fair share contributions,
appropriations, and funds available for capital improvements. At this time, there is one project
proposed to use fair share contributions. 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,
Harry Kim, Mays
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