Health officials consider use of special sewer fund

By Johnny Brannon
Advertiser Staff Writer

State health officials are reconsidering their opposition to Mayor Jeremy Harris' plan to balance the city's budget by tapping into a special sewer fund.

Health Director Dr. Chiyome Fukino had raised concerns that transferring $25 million from the fund would jeopardize the city's ability to repay $93 million in loans from the state and cause important sewer repairs to be neglected.

But the Health Department is taking a second look after hearing a detailed explanation of the plan and receiving assurances that the loans would not be threatened.

"They were quite confident that their planned use of the money was fiscally sound and they would be able to meet all their obligations," said Deputy Director for Environmental Health Larry Lau.

The state has not reversed its position, but may do so after all the information is reviewed, he said.

City Budget Director Ivan Lui-Kwan said the city's civil attorneys and bond counsel had approved the money transfer, which is awaiting a vote by the City Council.

Some council members say they oppose the plan in principle but likely will approve it because there is little alternative.

"Our problem is the mayor has handed us a budget that is balanced this way, and we would have to find the money somewhere else," council chairman Gary Okino said.

The city has shifted sewer fund money to the general fund since 2001 for expenses unrelated to sewer repair and maintenance.

That has been controversial because sewer repairs and upgrades are expected to exceed $1.8 billion over the next two decades.