With a relatively conservative budget in the works for the upcoming fiscal year, the Honolulu City Council and administration officials are brainstorming possible sources of revenue for Oʻahu.
Last week Honolulu Mayor Rick Blangiardi and his administration released a proposed $5.09 billion budget — slightly smaller than last year’s due to rising costs and little revenue growth.
Blangiardi has been steadfast in his refusal to increase real property taxes — the largest contributor to the city’s revenue, providing $1.8 billion — so councilmembers and city officials considered other possible revenue streams in the council’s first budget meeting Monday.
“Are we looking at all ways to generate revenue, like the empty homes tax or … increase the threshold for the higher-end homes and then tax them more?” Council Chair Tommy Waters said during the meeting.
The council has already had extensive discussions on a possible but controversial tax on unoccupied homes, while higher property taxes on more expensive homes could mirror legislation going through the county council on Hawaiʻi Island.
Honolulu Department of Budget and Fiscal Services Director Andy Kawano said city departments are also thinking about how they can provide revenue.
“I think you're going to get a lot of that from the departments, because a number of them have ideas … to generate some revenue,” Kawano said. “Entrance fees for parks, as an example, are going to start slowly.”
But the council is still interested in reducing fees for residents.
Councilmember Radiant Cordero also mentioned potential changes to property taxes, likely for higher valued homes, so that tax rates can be lowered for others.
The goal for several councilmembers is to continue funding important city services, but to have that burden shift away from the lowest-income earners.
“I think the main goal for us as a council, as well as the city administration — us as a city — is how can we shift the burden to those who are able to afford it versus those who are struggling to make it every single day?” Cordero said. “There's that huge trickle effect … through taking more city services and then not allocating and shifting the burden in other ways.”
The council will continue reviewing the mayor’s budget for the upcoming fiscal year every day this week.
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