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The Honolulu Advertiser
Posted on: Saturday, April 5, 2003

Budget ideas include end to beach events

By Treena Shapiro
Advertiser Staff Writer

To make up a projected $76 million shortfall in the city budget, four members of the City Council want to stop paying for the popular Waikiki street brunch and Sunset on the Beach programs and cut back on money earmarked for the agency staging those events.

Council members also have proposed reshuffling the $288 million construction budget, in several cases to free money for projects in their districts, such as putting a $5.5 million East Honolulu police substation back in the budget.

Council Budget Chairwoman Ann Kobayashi will take into account wish lists submitted this week by council members as she revises the budget bills in time for a public hearing April 30.

Kobayashi said she'll be keeping her eye on a bill moving through the Legislature that would let the counties levy a 1 percent sales tax in exchange for their shares of the hotel-room tax. If it passes, it would provide a solution to the $76 million shortfall in the $1.178 billion operating budget for fiscal 2003-04.

For Honolulu, the sales tax would bring in $120 million annually, according to projections, and could mean that the city will not have to raise property taxes and user fees.

In addition, Kobayashi said that if the sales tax gives the city a source of revenue from tourists as well as residents, the council might place more value on the city's Office of Economic Development, which is behind popular promotional activities such as Brunch on the Beach, Sunset on the Beach and the Kuhio Beach torch-lighting and hula show.

Four of the nine council members — Barbara Marshall, Charles Djou, Romy Cachola and Gary Okino — have proposed giving less money to the Office of Economic Development. "The concern is that it's a duplication of state efforts," Kobayashi said.

Aside from a percentage of the room tax, Kobayashi said, the city does not benefit financially from programs that attract tourists. But that could change if the city is allowed to impose a sales tax affecting visitors as well as residents. "Then we may need the Office of Economic Development," she said.

Marshall's justification for cutting the economic development programs was that "in this austere budget year, we cannot afford" them. She said money would be better spent on public safety.

Marshall also suggested closing at least one of the 11 satellite city halls.

Her proposals included adding $450,000 to the prosecuting attorney's budget, $639,044 to the Honolulu Fire Department and $50,000 to hire two lifeguards for Waimanalo Beach Park.

Djou submitted a 53-page list of cuts to various departments within the administration, as well as cuts to the council and construction budget, including $4.7 million for bikeway projects on Ala Wai and Young Street.

He also proposed additional money to build an East Honolulu police substation because construction bids came in higher than the $4.9 million budgeted and the earmarked money was allowed to lapse.