Accounting

Capital project funds are specific funds which are utilized for the construction of or for acquiring significant capital assets. The monies for this are acquired via the issue of General Obligation Bonds, taxes or grants from governmental agencies of public sector vehicles. There are specific restrictions as to the use of these funds the duration and use of the residual amount and the constantly occurring costs are accounted for in one expenditures account. The funds created for the expansion of the Justice Center, construction of the Government center and the Holding Facility construction appear to accord to the regulations concerning these funds.

    The Justice Center Fund benefited from the residual of the courthouse fund and the acquisitions from the 0.3 of the rise in sales tax of 0.5 as well as capital lease proceeds. However the operational needs will be fulfilled via interest income and future residuals which may be subject to uncertainty concerning the low interest rates in the country and volatility in the economy in the wake of the financial crisis. The detention facility expansion fund also suffers from this potential volatility but a part of its revenues are generated via taxes from previous years which hedges against interest volatility to some extent, as the project reaches completion at 2008, when the fund will cease to exist. In all three projects, the incremental future costs of operations and maintenance remain an issue and may require further financing at some point in the future. At present, the two major projects are in the capital outlay phase with operations not undertaken yet which should allow for the initial phase to be completed with the funding at hand. Requirements for future use may be available through prudent investment and possible part of financial stimuli being distributed by the federal government in the wake of the financial crisis.