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FINANCIAL REPORT FOR
$12 million more received in Fiscal Year 2009 than expected
Mayor Mufi Hannemann announced today the release of the August 2009 financial plan for the Honolulu Rail Transit Project, which shows the Project has a balanced budget and is in good financial health.
“We are committed to a transparent process and informing the public about the progress of rail transit, which is the state’s largest infrastructure project,” said Mayor Hannemann. “The Project’s latest financial report reflects more revenue from the General Excise and Use Tax (GET) surcharge than expected in Fiscal Year 2009.”
“The report is another indication that rail is affordable, in spite of speculation about the down economy. The Project is moving forward and we expect approval from the Federal Transit Administration to enter Preliminary Engineering, followed by the release of the Final Environmental Impact Statement this fall and groundbreaking at the end of the year.”
Key findings in the August financial plan:
· Forecasts for GET surcharge revenues are approximately $200 million higher through Fiscal Year 2023. This projection takes into account that actual GET surcharge received in Fiscal Year 2009 was $12 million higher than the most recent estimate, along with assumed annual growth rates.
· Federal funds through the Federal Transit Administration (FTA) will be sufficient for capital and financing costs not covered by GET surcharge revenues.
The August report does not reflect that the first indication from the cost proposals for the initial construction phase is lower than estimated, with a potential of saving several hundred million dollars in overall Project cost. The report also does not include the Council on Revenues’ projections for growth in state tax revenues beginning in FY2011.
“Potentially lower costs combined with indications of more GET revenue statewide are promising signs for the Project as we prepare for rail construction next year,” said Mayor Hannemann.
Copies of the financial plan will be made available through the Department of Transportation Services.