Keep eye on rail’s reserve fund

POSTED: 01:30 a.m. HST, Aug 08, 2012

~~<p>Financial reserves to pay for increasing costs of Honolulu's rail project are decreasing less than two months after construction began, but it is important to remember that such depletion is entirely expected in a project of this magnitude. In itself, depletion of the $815 million "contingency" fund should not be setting off alarm bells for taxpayers. What will bear watching, though, is the rate of drawdown in the months ahead, should it drop below anticipated benchmarks.</p>
<p>With tight financial management and scrutiny, this should not happen.</p>
~~

Financial reserves to pay for increasing costs of Honolulu's rail project are decreasing less than two months after construction began, but it is important to remember that such depletion is entirely expected in a project of this magnitude. In itself, depletion of the $815 million "contingency" fund should not be setting off alarm bells for taxpayers. What will bear watching, though, is the rate of drawdown in the months ahead, should it drop below anticipated benchmarks.

With tight financial management and scrutiny, this should not happen. Login for more...