Honolulu sewer plan: 150% rise in fees
By Robbie Dingeman
Advertiser Staff Writer
Honolulu residents already bracing for likely increases in their sewer fees starting this summer — and doubling within six years — may see bills climb annually for a full decade, four more years than originally proposed.
City Council members were surprised to learn yesterday that the increases could continue for the additional years. Council members knew going into the meeting that Mayor Mufi Hannemann had proposed doubling the average monthly sewer rates over the next six years.
But new details revealed yesterday showed that the average sewer bill would rise from a monthly average of $33 to $83.20 in 10 years under Hannemann's plan. He has said the increases are needed to pay for basic city services that include sewer work and road repairs that had been neglected before he took office.
It has been 12 years since the sewer fee was last increased, officials have said.
On top of six years of increases announced earlier, the city now is projecting these increases:
- 10 percent in the fiscal year that begins in 2011;
- 6 percent the following year;
- 4 percent in each of the next two years.
Michael Parke, a Kuli'ou'ou resident and research biologist, said he understands that sewer service fee increases are needed to operate and maintain the system but he'd like to see that the money being charged goes only into the system.
The City Council's budget committee will discuss the sewer service fee increase (Bill 19) along with other budget bills at 9 a.m. Wednesday on the second floor of Honolulu Hale. The committee's anticipated recommendation for approval would set the stage for final passage of the first five years of rate increases by the City Council at 10 a.m. June 6 at Honolulu Hale. If the bill is approved, residents would see the first increase take effect July 1. The additional years of increase will require additional legislation.
"There's no doubt in my mind that we have neglected our sewer system for too long," Parke said.
But he's concerned that he hasn't seen many improvements with the money already collected.
He also would like to see the city tackle what he sees as a fairness issue. Sewer fees are charged based on how much fresh water is used in a household, so people who use water in their yard pay higher fees.
"People who live in dry areas, including Kuli'ou'ou and Wai'anae, may spend a lot of water on keeping their plants alive," Parke said. "That water's not going in the sewer system, but I'm paying for it."
Council Budget Chairwoman Ann Kobayashi said she was taken aback to see that the administration projected a full 10 years of increases, instead of just the six spelled out in a bill, known as Bill 19, nearing final approval before the council.
"It was a surprise," Kobayashi said. But she said she hopes that good management of the sewer system, timely improvements and a vow to not use sewer money for any other budget priority will make it unnecessary to continue the increases for the full 10 years.
"These projections have been wrong before," she said.
City Environmental Services Director Eric Takamura said the city is trying to keep up with rising construction costs in a booming economy as well as the routine cost of maintaining, operating and improving the aging municipal sewer system.
"It just happens that this year we have basically zero reserves," he said. Takamura said the city needs to have at least three months of reserves to meet its financial obligations.
In addition, some of the interest payments on work being done are coming due, including $46 million in debt service in the next year, he said.
City Councilwoman Barbara Marshall asked Takamura to provide more details about the fee increases.
"This is obviously a grave concern to our constituents," Marshall said. "Now you're telling me that there is no end of it."
Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com or 535-2429.
