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The Honolulu Advertiser
Posted on: Wednesday, April 17, 2002

Concern greets city plan to raid sewer fund

By Robbie Dingeman
Advertiser City Hall Writer

Deputy state health director Gary Gill is criticizing a city plan to take $60 million from the sewer fund to balance the city budget, saying the city needs to stay on top of maintaining its aging sewer system.

In a letter last week to the City Council, Gill notes that the city needs more than $1 billion related to maintenance and rehabilitation of sewers, which "if not maintained will result in sewage spills."

In 1995, the city paid a $1.2 million fine for sewage spills, Gill said.

"Diversion of funds from the Sewer Fund is not appropriate considering the need for sewer improvements and the threat of additional fines for sewage spills," he wrote.

Gill also pointed out that the state health department had given an "unacceptable" rating to the Sand Island Wastewater Treatment Facility, the city's largest.

City Budget and Fiscal Services Director Carroll Takahashi said the city had reviewed the financial plan with wastewater officials, attorneys, bond raters and the federal Environmental Protection Agency before proposing the transfer.

The Harris administration maintains the city is not raiding the fund, it is reimbursing the city's general treasury for money spent before the Department of Environmental Services had a separate fund.

Council Budget Chairwoman Ann Kobayashi said she remains deeply concerned about the proposed transfer and has been working to trim millions from the city budget to reduce the amount that needs to be transferred.

Environmental Services Executive Assistant Tim Houghton said the city is moving forward with a sewer improvement plan that addresses the state's concerns. He said the fund transfer "has no real impact on our existing plan. It doesn't change the speed at which these projects can get done."

Kobayashi said she's also worried about $18 million being taken out of the solid-waste fund.

"We should never have gotten into this kind of situation," Kobayashi said. "If we don't transfer, we can't run the city: It's just unbelievable that we've reached this point."

Kobayashi said the city should have considered modest increases in fees or taxes to help balance the budget rather than relying on short-term fixes such as raiding special funds, land sales and borrowing.

"All the other counties have raised property taxes," Kobayashi said.

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