Kaua'i budget to top $100 million for first time

By Jan TenBruggencate
Advertiser Kaua'i Bureau

LIHU'E, Kaua'i — Mayor Bryan Baptiste has proposed a $103.2 million county operating budget for the fiscal year starting July 1, a 6 percent increase from this year's $97.4 million budget.

Baptiste wants to reduce real property tax rates, but property values have risen so significantly that even with the cut, the county expects to take in $56.3 million in tax revenues, an 18.5 percent increase over the current fiscal year.

If approved by the County Council, it would be the first time the county's budget has exceeded $100 million.

Baptiste also proposes a $16.6 million capital improvement program, which is down from about $19 million last year.

In his budget message to the council, Baptiste said that more than half of the operating budget increase consists of uncontrollable costs such as salaries and benefits.

The county's contribution to health and retirement programs alone require a $2.4 million increase, he said.

In the lean years after 1992's Hurricane 'Iniki, the county deferred many expenses such as equipment and vehicle replacement and building maintenance. The county is having to catch up now, Baptiste said, but will try to spread out the costs as much as possible.

The mayor proposed nine new county jobs: two lifeguards, two bus drivers, a planner, a park ranger, a personnel specialist, a mechanic and a filing clerk.

He also is asking for money to conduct a study of coastal erosion islandwide, with a specific emphasis on the southern coastline.

"The south shore of our island is eroding at an alarming rate. This study will provide data to help the county see how we can mitigate this through replenishment and other factors," Baptiste said.

The administration is proposing that the county begin building up a reserve for emergencies. Baptiste is proposing to start with $2 million this year, and to add to it over time to reach 10 percent to 15 percent of the county's annual operating budget.

"It would be used for any type of unforeseen critical requirement," said mayoral administrative assistant Gary Heu.

The mayor also suggests the council authorize issuing a bond to pay for public-works projects.

Heu said the county is setting aside $1 million in the budget to cover the initial cost of the bond, which he said could be in the neighborhood of $15 million.

"The time to float a bond is now. There are pressing needs led by the requirements of a new landfill. Our bond rating is excellent at the moment," Baptiste said, and interest rates are low.

A public hearing on the county budget and property tax rates is scheduled for 7 p.m. May 6 in the council chambers in the Historic County Building.

Reach Jan TenBruggencate at jant@honoluluadvertiser.com or (808) 245-3074.