The Honolulu City Council is urging Mayor Rick Blangiardi's administration to find ways to generate funds without forcing residents to shoulder most of that burden.
Last week, Blangiardi proposed a $5.14 billion budget for the upcoming fiscal year, up more than $400 million over last year’s budget. This week, the council started holding hearings on the matter.
Councilmembers have asked the city to find alternate revenue streams in the past. During Monday’s hearing, they again floated ideas that would avoid or mitigate higher fees for residents, like an empty homes tax or a hotel property tax.
“The first and foremost question that we’ve asked multiple years in a row is, ‘What is the strategy for the administration to generate revenue?’” Councilmember Andria Tupola said.
Councilmembers have been hoping to reduce a proposed hike in sewer fees that would more than double over the next decade to fund wastewater treatment plant upgrades.
“Ultimately, the residents are going to end up paying 100% more for their sewer bill. And I'm trying to figure out a way that we can take existing money and put it towards that,” Chair Tommy Waters said.
“This is like a big storm. It's like a typhoon or a hurricane out in the Pacific Ocean that's coming towards us, and people really aren't reacting to it yet until they get that first bill.”
Blangiardi’s proposed executive budget includes a nearly $49 million increase to cover growing bus and rail costs, more than $39 million for a green waste program and new wastewater billing system, and more than $34 million in overtime salary for public safety employees and recruitment initiatives.
There’s also an increase of $117 million for the city’s post-employment benefits, a new $10 million provision for homeless shelters and outreach, and nearly $9 million for climate resilience activities.
The city said the majority of its proposed capital improvement budget increases come from $86 million for refuse and wastewater projects, $44 million for highway and street improvement projects, and $39 million for affordable housing projects.
“We actually have very limited areas in which we can drive more revenue,” said Andy Kawano, director of the Honolulu Department of Budget and Fiscal Services, at the hearing — backing the need for a jump in fees.
He said the proposed empty homes tax bill would impact both residents and nonresidents, and in its current form has a number of exemptions that weaken its ability to increase revenues.
The City Council was holding a second day of budget briefings Tuesday.
