WAILUKU, Maui -- Mayor Charmaine Tavares today proposed a $561 million budget for 2008-09, an increase of just 2 percent over the current year, reflecting a flattening of property-tax revenues, The Maui News reported.

Spending on county operations would go up by 6 percent to $461 million, while Tavares proposes spending $99.9 million on capital improvement projects, down 12 percent from this year. The lack of available State Revolving Fund loans, which last year provided around $20 million for water and wastewater projects, was the critical factor in cutting capital spending, she said.

Major infrastructure projects proposed by Tavares include:

• $1 million for a county emergency management center.

• $7.6 million for Phase I construction of the South Maui Community Park.

• $5.3 million for rockfall mitigation in Kaupo.

• $7.25 million for new water source development.

• $3.75 million for Upcountry water storage reservoirs, with $11.25 million in matching state and federal funds.

While Tavares proposes no change in property tax rates, residents would pay more in fees for services:

• Trash collection fees would go up by $4 per month.

• Water rates would increase by $2.75 per month for the average residential family.

• Wastewater rates would increase by $3.80 per month for a single family residence.

There was one bright spot in a year of otherwise flat revenues. In addition to $561 million in county revenues, Tavares said her administration expected to receive $87.6 million in state and federal grants, an 80 percent increase over this year.

"As the economy slows, the need to look beyond local resources is magnified," she said.

The Maui County Council begins its review of the budget next week.

For more, see Saturday's edition of The Maui News.

For more Maui news, see www.mauinews.com.