City officials explain shortfall

By Robbie Dingeman
Advertiser City Hall Writer

City Council Budget Chairwoman Ann Kobayashi yesterday pressed the city administration further about why $60 million is scheduled to be transferred from the city sewer fund to the general treasury when the city is faced with $1.8 billion in improvements to the wastewater system over the next two decades.

"How did we get in the position where $60 million was needed to balance the budget?" Kobayashi said.

City budget and fiscal services director Caroll Takahashi said the city has been faced with declining revenue from real property taxes because property values have declined in the past decade. During the past year, the city also got a smaller share of the hotel room tax, she said.

City officials in recent years have been reluctant to raise taxes, increase sewer fees or reduce services.

Kobayashi also asked city environmental services director Tim Steinberger why the administration has not pushed for an increase since 1993 in the sewer service charges paid by residents connected to the city sewer system.

Steinberger said the current rates have been adequate to pay for the projects that are priorities and that have been designed and scheduled for construction. "We have not sacrificed anything by keeping the sewer rates where they are," he said.

Steinberger also said his department has been guided by the council policy that long-term capital construction projects should be paid for by bonds.

Steinberger said the city is expecting to ask for an increase in the base monthly sewer charge by about $3.75 for each single-family home for the 2003-04 fiscal year. Currently, the base monthly fee is $33.65 with additional charges based on usage.

Earlier, city parks director Bill Balfour told the council that the city has not been able to find a private operator to run the new Waipi'o Peninsula Soccer Park.

Balfour said the city had received six proposals but none fit all of the city's requirements.

Kobayashi said she wants to know exactly how much that park is costing the city because "the council was told that there would be this public-private partnership."

The city budget submitted earlier this month shows a 16.8 percent increase in the city's grounds maintenance budget to more than $20 million, specifically referring to new parks, including Waipi'o.