O'ahu sewer fees could double by 2010

By Robbie Dingeman
Advertiser City Hall Writer

An international bond-rating company is warning that the city may have to double sewer fees by the year 2010 to help finance a long-planned 20-year $2.1 billion construction program.

Fitch recently analyzed the Honolulu city government's financial outlook and found it generally stable.

But its report also noted that the city last raised sewer rates in 1993 while forecasts show more increases are needed to keep up with capital improvements.

During his last campaign for re-election, Mayor Jeremy Harris committed to holding rates steady until 2003. Harris, who has announced he is leaving office mid-term next year to run for governor, has also continued to push forward with improvement to the city's aging sewer system.

"Starting in fiscal year 2004, rates will increase between 6.5 percent and 13 percent each fiscal year through fiscal 2010," analysts said. "Therefore, by fiscal year 2010, rates will have almost doubled, resulting in a $65.45 average monthly residential charge."

The average single-family residential monthly sewer bill — which is added to the Board of Water Supply charge —Êis $33.35 or about $400 a year.

The report notes that the dramatic increase in fees is "necessary to meet environmental concerns, and rates will still be somewhat moderate when compared with other major cities that have large infrastructure needs."

When Honolulu's sewer rates were raised by more than 30 percent in 1993, the city received more than 5,000 complaints.

City Councilman Romy Cachola, who is just beginning his political career with the city, said he is worried about the reaction from residents to such big increases down the road. He notes that the city has diverted money from the sewer fund on previous occasions.

In the last budget, the city earmarked more than $41 million from the sewer fund for transfer to the city's general treasury to reimburse for "past capital costs" that the general fund paid on behalf of sewer-related expenses.

"Are we going to take money again from the sewer fund?" Cachola asked. He suggested that perhaps the city should keep more money earmarked for sewer system improvements to buffer future rate increases.

Council Budget Chairman Steve Holmes said he has been surprised that the city could postpone new sewer rate increases for this long. "The bad news is it eventually does catch up with us."

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com or 525-8070.