Posted on: Wednesday, July 21, 2004

EDITORIAL
Surge in city taxes must go to the basics

Even though the City Council chose not to increase residential property tax rates this year, most homeowners can expect to see a hefty boost in their bill.

That's because rapidly rising property values have pushed up residential valuations to a record $110.4 billion, or 16 percent over last year.

This is a classic good-news, bad-news situation for home and apartment owners. Yes, their property is worth more than ever before. But unless they are prepared to sell, all this means is a higher tax bill.

Still, with the higher valuations and collections, coupled with higher rates for commercial, industrial and hotel properties that will generate an additional $13.5 million, the city should head into the next budget year on relatively sound financial footing.

It will need every penny of it.

The unfolding campaign for mayor, to replace the outgoing Harris administration, has made it clear that the city faces serious and unavoidable bills in the coming years.

Much of the due bill is for critical, if less than exciting, work, such as sewers, road repairs and sewage treatment facilities.

Both major mayoral candidates have pledged to focus first on these basic "infrastructure" needs, and that makes sense.

But you can't rebuild the roads, replace an aging sewer system and build 21st-century sewage and waste-disposal systems on the cheap.

That's why the current council must resist the understandable political pressure to lower tax rates or shift some of the money to high-visibility projects.

Council chairman Donavan Dela Cruz has already signaled that he believes O'ahu residents would prefer a somewhat higher tax burden over a cut in services.

The next mayor, whoever it is, will come into office promising to pay attention to the basics.

The council must make sure the pieces are in place to make that happen.