Property taxes, parking to rise under city budget
By Johnny Brannon
Advertiser Staff Writer
Parking fees and some property taxes will soon increase, but the mayor and City Council won't get a pay raise this year.
Amid last-minute number-crunching and political maneuvering, the council yesterday approved a $1.5 billion spending plan for the fiscal year that begins next month, but delayed voting on a controversial tax break for agricultural land.
City parking spaces that cost $1 per hour will go up to $1.50; those that cost 50 cents will go up to 75 cents.
City parking meters will be ready for the higher rates in about three months, but city parking garages without meters could start charging the new rates within weeks, officials say.
The tax rate for commercial, industrial and hotel properties will increase 7 percent, to $11.37 per $1,000 of assessed value, from $10.63.
The rate for homes and apartments won't go up, but most property owners in all categories will still pay more in taxes next year because assessed values continue to climb.
And the cost of increasing the tax rate for businesses will likely be passed on to consumers, critics of the tax increase said.
"These taxes are not going to be paid by big corporations. They're going to be paid by individual residents, anybody who ever visits a grocery store, anybody who goes to a restaurant, anybody who works outside the home, pretty much everybody is going to end up paying these additional taxes," Councilman Charles Djou said.
Others said they had reservations about raising taxes and fees but felt there was little choice.
"It's not that we favor increases, but we have no other way of balancing the budget," council budget chairwoman Ann Kobayashi said.
The council had been poised to vote on a bill that would have slashed taxes for vacant agricultural land by 95 percent but agreed to postpone the vote until next month.
Kobayashi said the matter had become "too politicized," and pointed to a press conference held the day before by mayoral candidate Duke Bainum, who called the bill a "poster-child for special-interest legislation."
But Councilman Gary Okino called Kobayashi's reasoning "baloney," and said the real reason for the delay was to separate the tax break from the vote on the budget, because it would have unbalanced the spending plan and triggered a veto by Mayor Jeremy Harris.
"Why would it take the politics out of it to defer it for one month?" Okino said. "The politics will still be there."
Kobayashi said she had no doubt that the bill would pass next month in some form.
"We have the votes today to pass this bill, and those votes will be there July 14th," she said.
City managing director Ben Lee said that would leave a big hole in the budget and cause problems. And there are enough already, he said.
"Frankly, we don't know whether this budget is balanced or not," he said. Harris has 10 days to decide wether to approve or veto the spending plan.
Okino called the budget "terrible" and said too much money had been cut from city departments that maintain roads and sewers.
"This budget favors special interests over public interests, relies on short-term rather than a long-term fiscal plan, and continues to fund special, non-core programs at the expense and detriment of basic city services," he said.
But Kobayashi and several others said it was important for the council to increase spending on park maintenance, and police and fire protection.
Councilwoman Barbara Marshall said parks should not be viewed as "frills," but as vital community assets that should be safe for children.
The council voted unanimously against granting its members pay raises of 21 percent, and against raises of 5 percent for the mayor, prosecutor and several other officials.
Djou and Councilman Mike Gabbard voted against the property tax increase. Djou and Okino voted against the budget. And Djou, Gabbard, Marshall and Okino voted against the parking fee increase.
Reach Johnny Brannon at 525-8070 or at jbrannon@honoluluadvertiser.com.
