Harris urged to cut projects

By Johnny Brannon
Advertiser Staff Writer

The city is spending too much money to pay back loans, and Mayor Jeremy Harris should pull the plug on unnecessary park and beautification projects instead of going deeper into debt, some City Council members say.

"We should limit our spending to essential projects," Councilman Gary Okino said. "Debt service is killing us."

Harris outlined several ongoing park and recreation projects during his State of the City speech, and is expected to include new ones in the city budget he will unveil next month.

Okino, council Chairman Donovan Dela Cruz and Budget Committee Chairwoman Ann Kobayashi have sponsored a resolution directing the mayor not to include new park and beautification projects in the spending plan.

"It's not glamorous to talk about fixing our sewer lines because they're underground and no one sees them, but that's what we need to do," Okino said.

Harris, who can't run for re-election this year because of term limits, has warned that he will likely seek council permission to raise some property taxes. Five council members, including Kobayashi, are up for re-election.

"We're going to have to do some really unpopular things, like raise fees and taxes," Okino said. "If we are going to impose that on our citizens, we have to show some fiscal prudence and at least let them know we're trying to do the right thing."

Kobayashi said Harris should not leave the city with expensive bills to pay.

"Six months after the budget, he'll be gone. But what about the operation and maintenance costs?" Kobayashi said. "He'll put in all these projects, and we'll be stuck with the bills to maintain them."

Dela Cruz said the restrictions could apply to projects Harris has already announced, if contracts to build them have not yet been signed, or construction can be postponed.

"There are so many critical needs of the city that have to be addressed before we continue to expand our inventory," he said.

Among the projects scheduled for the coming year are a swimming pool and tennis clubhouse at Central O'ahu Regional Park, and an orchid conservatory at Foster Botanical Garden.

Harris' budget director, Ivan Lui-Kwan, said the council should simply refuse to pay for any new projects it doesn't support, rather than seek a broad ban.

"The administration does not spend one penny that has not been approved and funded by the City Council," Lui-Kwan said in a prepared statement. "If the council does not want the administration to implement a program or project, then they should not fund it."

He said the administration has refrained from spending more than $700 million that the council has approved during the past 10 years for various projects. That has protected and improved the city's excellent bond ratings, he said.

But Kobayashi said some projects have proved to be more expensive than Harris originally promised, and the cost of others is ongoing.

The city has been unable to strike a deal for private operation of the $24 million Waipi'o Soccer Complex, she pointed out, despite early assurances from Harris that the popular 300-acre complex would be managed and maintained at no cost to taxpayers.

"The easy part is putting in these projects," she said. "The hard part is the operation and maintenance costs that will go on for years."

The city issues bonds every year to borrow money for construction projects that will be paid for over decades. The portion of the city's annual budget that's used to repay such loans has steadily increased in recent years, as more money was borrowed and some older debts were refinanced so they would be paid off over a longer time.

Debt service now accounts for nearly 20 percent of city operating costs, sharply limiting the amount available for worker salaries and other needs, council members say.

"We want to be able to pay for our core services, like police officers, and all the fixed costs that keep increasing," Kobayashi said.

The council's Budget Committee is scheduled to consider the spending restrictions in a public meeting Wednesday.

Reach Johnny Brannon at 525-8070 or jbrannon@honoluluadvertiser.com.