City construction budget receives $2 million trim

By Robbie Dingeman
Advertiser City Hall Writer

The City Council yesterday trimmed Honolulu's construction budget for the upcoming fiscal year by $2 million, which works out to be just enough to make the spending plan the second largest capital improvement budget in city history instead of the largest.

The last-minute amendment reduced the amount of money set aside to preserve the area near the Luana Hills Golf Course.

Last week, city officials and the Weinberg Foundation fashioned a compromise to allow the Windward golf course to operate instead of moving forward with a plan to put $8.1 million in the budget to condemn the land.

Under the latest compromise, the foundation would continue to keep and operate the golf course. But city officials would be able to tap into $6.1 million that could be used to pay the foundation for a conservation easement that would restrict or ban development in the area.

The struggle over the Windward golf course and lands near the foot of Mount Olomana earlier stalled approval of the construction budget, which now weighs in at $579 million, slightly less than the record 1992 construction budget.

Councilman John Henry Felix cautioned against increasing the construction budget so much, with the nation on the brink of recession.

Financing for the construction budget comes from government bonds. Such money borrowed each year must be paid off years from now, along with the "debt service" or interest added over time.

Felix noted that this year's debt service is at $107 million, which is expected to rise to $207 million in repayment costs by 2006 and to $288 million by 2026.

"This is real debt and that must be paid now or later," Felix said. "Consequently, real property tax revenue will have to rise significantly."

"Do we want this to be our legacy?" he asked. "I think not."

Councilman Andy Mirikitani was the only member to vote against the construction budget. Mirikitani is awaiting trial next month on federal charges that include theft, bribery and extortion and until yesterday was the only council member to strongly criticize the spending plan.

Mirikitani said the city is neglecting core services such as "fixing and resurfacing all the roadways in a timely and consistent manner."

Councilman Duke Bainum defended the budget as one driven more by the people of the community than by the political aspirations of government officials. Some critics had complained that officials with ambitions for higher office have fattened this budget to leave a political legacy.

"These projects are not pork. They are projects that our communities want and need," Bainum said.

Councilman Steve Holmes, the Budget Committee chairman, said the budget isreasonable, considering that it sets aside more than $200 million for sewer projects mandated by the federal government.

However, the operating budget approved by the council yesterday came in at a $1.08 billion — with no new fees or taxes.

The council also unanimously approved the first step toward acquiring Waimea Valley on the North Shore. The council agreed to begin efforts to condemn the land by positioning the proposal for a vote next month.