Kaua'i holds line on property tax rate
By Jan TenBruggencate
Advertiser KauaÎi Bureau
LIHU'E, Kaua'i — The county's proposed 2001-02 operating budget calls for a 17 percent increase in spending, with no hike in real property tax rates.
Most of the $12.3 million in new spending is for employee-related costs, said Mayor Maryanne Kusaka.
Her proposed budget, which still must be reviewed and approved by the County Council, calls for total operations spending of $82.9 million, up from the $70.6 million approved by the County Council last year.
Kusaka said the increase without higher property tax rates is possible in part because of a strong rise in the values of real estate on Kaua'i.
Real estate values are expected to be up 10 percent for the coming tax year, rising dramatically for the first time after an eight-year slump following Hurricane Iniki in 1992.
The administration hopes to increase fees at the municipal Wailua Golf Course, which recently got a $2.3 million irrigation system. The course traditionally has covered all its costs, but this year it is expected to require $465,000 in subsidy from the general fund.
The county anticipates that already-approved wage increases for public employee union members will cost $2.36 million. Added health and retirement benefits will cost an additional $4.06 million.
Electricity costs are up, and the county also is spending considerable money studying whether to buy the Kaua'i Electric Co., the mayor said. The mayor set aside $2 million to cover consultant fees and possible legal costs associated with the study of the sale to the county or some other organization of the utility.
The removal of junked cars from public property has been a major expense, and it and other solid waste disposal costs are a major drain on the county budget, she said.
Kusaka hopes to expand county lifeguard coverage to double the number of guard stands in place six years ago. There are eight guarded beaches, and the county plans this summer to add two new lifeguard positions and a lifeguard stand at Kealia Beach.
Kusaka has proposed 10 guard position for the holding cells in the Kaua'i Police Department's new building, on which construction has not begun.
