Tavares calls for tax give-back

The Maui News
Friday, March 16, 2007
By ILIMA LOOMIS, Staff Writer

WAILUKU - Mayor Charmaine Tavares presented a $524.9 million budget proposal Thursday, a 12 percent increase over current spending, with a substantial investment in sewer, water and sanitation projects.

Tavares' budget offers across-the-board property tax rate cuts to offset expected increases in property assessments, and would increase rates for water, sewer and landfill services.

On the spending side, the plan would add 127 new workers to the county payroll and increase spending on county operations by 15 percent to $421 million, while reducing the budget for capital improvement projects by 11 percent to $103.9 million.

The lion's share of the capital budget, with additional funding from state and federal grants, would go to basic infrastructure upgrades, including $25.7 million for sewer projects, $24.7 million for water projects, $26.4 million for roads and drainage, and $15.1 million for landfills.

"Costs to provide services continue to rise, as do the costs of designing, building and maintaining (infrastructure)," Tavares said. "Yet we must take on the responsibility of providing needed services and building needed infrastructure so that our residents may experience a high quality of life."

The Maui County Council will start its review of the annual budget with hearings beginning Thursday. Under the Maui County Charter, the mayor is required to present a budget proposal to the council by March 15, with the council given until May 30 to prepare its own version of the annual budget.

The county fiscal year is from July 1 to June 30.

The new mayor's so-far warm relationship with the council showed no signs of cooling Thursday, with Council Chairman Riki Hokama offering a supportive initial assessment of Tavares' spending plan.

"I found it refreshing the new Mayor Tavares' first budget has gone back to basics," he said.

Tavares proposes to cut property tax rates to offset yet another year of double-digit property assessment increases. Although assessments are expected to increase by 17 percent to $40.7 billion for the year, with her cuts actual property tax collections are projected to go up by only 1.8 percent, to $196.6 million.

The tax cuts would mean a homeowner whose $600,000 home increased in value by the average 17.5 percent last year would see no change in the amount billed for taxes, said county Finance Director Kalbert Young.

Tavares' proposed tax rates are:

Homeowner, $1.85 per $1,000 of assessed value (current $2.50).

Improved residential, $4.70 (current $5)

Unimproved residential, $5.35 (current $5.86).

Apartment, $4.55 (current $5)

Hotel/Resort, $7.30 (current $8.20)

Time-share units, $12.75 (current $14)

Agriculture, $4.15 (current $4.50)

Industrial, $5.70 (current $6.50)

Commercial, $5.90 (current $6)

Conservation, $4.70 (current $4.75)

Meanwhile, Tavares proposed raising user fees for basic county services, resulting in increases of around $8.40 per month in sewer fees, $1.50 per month in water fees, and $4 per month for trash collection for the average household, she said.

Landfill tipping fees would go up by more than 27 percent to $60 per ton, and green-waste disposal fees would go to $20 per ton, a 185 percent increase.

Tavares said the fee increases were meant to cover increased operating costs for water and sanitation, and help bring county solid waste programs closer to paying for themselves.

"These are very, very necessary," she said.

On the spending side, Tavares called for increasing funds for nearly every county department and hiring some 127 new county employees, with some departments getting big raises in money and workers. Significant spending bumps include:

Department of Parks and Recreation, 16 percent budget increase to $27.5 million, with 35 new workers, including six park security officers.

The new Environmental Management Department, which will oversee solid waste and sanitation programs; 16 percent budget increase to $62.7 million, with 26 new workers.

Fire Department, 20 percent budget increase to $26.4 million, with 10 new workers.

Planning Department, 37 percent budget increase to $6.6 million, with seven new workers, including two new zoning inspectors.

Hokama said he appreciated Tavares' focus on "nonglamorous" items, such as improving core county services and upgrading basic infrastructure, saying it reflected a change from past mayors.

"Finally we get away from the glitter," he said.

He said he would take a close look at her proposal for new workers, saying he understood there would be a need to add employees to the Department of Environmental Management, which was split off from the Department of Public Works and Environmental Management through a charter amendment approved last year.

"Some of it makes sense," he said.

He also was open to Tavares' plan to return real property taxes to taxpayers by cutting rates.

"This is the right time, when we do have some flexibility because revenues are strong," he said.

In capital projects, Hokama sounded supportive of Tavares' $4 million request for a county morgue, calling the project a "critical component of our county services."

The council cut an identical request made a year ago by then-Mayor Alan Arakawa - who had a notably less harmonious relationship with the council.

Hokama said he'd simply had a chance to talk with police and medical examiners, as well as with families of the deceased, and was convinced the existing morgue at Maui Memorial Medical Center was inadequate.

"The time has come that we need to make this improvement," he said.

BUDGET HEARINGS

The County Council Budget and Finance Committee has scheduled a series of hearings to gather public testimony on the proposed budget for fiscal 2007-08.

All meetings start at 6 p.m.

Thursday, Helene Hall in Hana.

March 27, Mitchell Pauole Center, Molokai.

March 28, Mayor Hannibal Tavares Community Center, Pukalani.

March 29, Lahaina Civic Center.

April 2, Paia Community Center.

April 3, Kahului Community Center.

April 4, Lokelani Intermediate School cafeteria, Kihei.

April 5, Lanai High and Elementary School cafeteria.

IN THE DETAILS

Notable capital projects requested by Mayor Charmaine Tavares include:

KIHEI POLICE STATION - $3 million to buy land for a new station.

SOUTH MAUI COMMUNITY PARK - $700,000 for initial site work on a gym and soccer and softball fields.

LILOA/PIIKEA ROUNDABOUT - $1 million for design and construction.

LAHAINA WATERSHED FLOOD CONTROL - $2.2 million for land, design and construction.

LAHAINA RECYCLING CENTER - $2 million for land and construction for a drop box and bottle redemption center.

MORGUE - $4 million to buy and renovate Wailuku facility.

MOLOKAI LANDFILL - $3 million to build a new landfill cell.

KULA TENNIS COURTS - $1.1 million to build two new courts.

HAIKU FIRE STATION - $500,000 for design.

BALDWIN AVENUE BIKE PATH - $500,000 for land.

MATERIALS RECOVERY FACILITY - $500,000 to plan a "MRF" where recyclables would be sorted and processed.

COUNTY OFFICE BUILDING - $350,000 to design office and parking space on a county-owned Kaohu Street lot.

UKUMEHAME LAND ACQUISITION - $508,000 for land condemnation proceedings related to 100 acres purchased by the county last year for the Pali to Puamana Parkway.

LANAI FIRE STATION EXPANSION - $225,000 to expand garage, storage and fitness space.