Council to tackle budget plan

By Treena Shapiro
Advertiser Staff Writer

The City Council Budget Committee this week will consider proposals by council members on the administration's proposed $1.147 billion operating and construction budget for the fiscal year starting July 1.

One of the major provisions is Mayor Jeremy Harris' proposal to raise property tax rates, except for apartment owners. But among the various proposals is one by city Councilman Charles Djou, who wants to shave $24 million from Harris' proposed budget rather than increase property taxes.

Djou realizes that the cuts would mean a reduction in city services, but said he does not believe the administration's prediction that they would devastate city government.

"Everybody took a hit with my proposed budget," Djou said, but noted his suggestions still allow for a 3.5 percent increase in spending. With an additional $40 million over last year's operating budget, "I'm giving the city an increase in spending at double the rate of inflation."

Under the administration's proposal, $23 million in new and increased user fees have been proposed, while increased property assessments would raise $20 million and a tax rate increase for everyone but apartment and condominium owners would bring in another $24 million.

During a special Budget Committee meeting today, council members will address technical changes to several fee bills and discuss budget questions the committee believes the administration has not adequately answered. At Thursday's meeting, the committee considers substantive changes to the legislative, operating and construction budget bills, as well as several user-fee proposals.

The outcome of Thursday's meeting should be new drafts of the budget bill in time for a public hearing before the full council at 4 p.m. on April 30.

Djou said the mayor's proposal includes "the largest tax increase in modern city history." Since 1980, the only rate increases have been to maintain the same level of revenue and did not increase property owners' tax bills.

However, he acknowledges that while most on the council would like to avoid a tax-rate increase, the majority is also opposed to cutting services. Under his proposal, "The reality is that, yes, some services will be cut."

Other council members proposed more modest budget cuts, such as eliminating Brunch on the Beach and Sunset on the Beach or other programs they say are nonessential.

The state House Democrats' decision not to hear a bill that would have let the counties levy a 1 percent sales tax has left the council with little hope that it will be able to avoid the tax and fee increases.

Councilwoman Ann Kobayashi, chairwoman of the Budget Committee, has complained that the administration's balanced budget assumes that increases will be approved, giving the council little flexibility.

The sales tax would have allowed the city to get by without raising property taxes and fees, Kobayashi said. "It certainly would have helped," she said. "Our major source is the property tax and there's only so much you can raise property tax. We have a sewer fee also and because the administration has raided that fund we're going to see increases in sewer fees beginning next year."