Friday, March 2, 2001
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Posted on: Friday, March 2, 2001

No property tax hikes in $1 billion city budget


By Robbie Dingeman
Advertiser City Hall Writer

Mayor Jeremy Harris today is expected to propose a $1 billion city operating budget that asks for no increases in fees or real property tax rates and a reduction of property tax rates for apartment and condominium owners.

"The major announcement is there will be no real property tax increase," Harris said late yesterday.

At a news conference this afternoon, Harris is scheduled to unveil his proposed spending plan for the fiscal year starting July 1. The proposed budget goes to the City Council for consideration.

Harris and his top aides have hinted for months that the city probably would propose higher real property tax rates after years of declining property tax revenues. Those taxes traditionally bring in about one-third of the city’s operating budget.

But he indicated yesterday the city doesn’t have to raise the rates to cover budget costs, including about $60 million in public employee wage increases and benefits. "All the pay raises are funded," Harris said. "By restructuring the debt, we’re going to be able to significantly drop our debt service," he said.

Harris also will propose a construction budget of $490 million, with the largest portion, or $201 million, designed to improve Oahu’s aging sewer system. Harris said he believes it’s Honolulu’s largest-ever wastewater construction budget.

Harris also said the city will continue to lower real property tax rates for apartment and condominium units so that in three years the rates will be the same as for single-family homes.

He said he will not raise sewer fees this year or next.

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