Honolulu property owners who maintain a homeowner's exemption would receive a $100 property tax credit under a proposal discussed yesterday.

The City Council's budget committee decided to recommend the credit after discussing how best to spend a $21 million surplus of real property tax revenue. The $100 tax credit would cost the city $14 million.

Anyone currently without a homeowner's exemption has until Sept. 30 to apply for it in order to be eligible for the credit.

"I think people recognize it's not huge but in budgeting we're making sure the city has money to provide for public safety, welfare and the services the city needs to provide," said Councilman Todd K. Apo, chairman of the budget committee. "There is no way you're going to cut anybody's tax bill in half."

Of the $7 million remaining from the surplus, $3 million would be put toward an energy provisional account and $4 million would be used to pay cash for capital improvement projects in order to save the interest payments that would result from borrowing money.

"If we had another $14 million we would have all loved to give back another $100 but that's the reality of the budget and the cost of running the city," Apo said.

The budget committee also recommended maintaining the current property tax rates for the coming fiscal year.

The rates, which would be assessed from July 1 until June 30, 2009, will be the subject of a public hearing June 4, and the council will vote on the rates the same day.

Property taxes are determined by multiplying the assessed value of a home by the tax rate, which is set each year by the city.

The council last year lowered tax rates for homes and apartments from $3.59 to $3.29 per $1,000 of assessed value.

The rates may mean a property tax savings for some, following a decline in assessments last year.