The latest budget proposal from the City Council's Budget Committee would give homeowners a $175 tax credit to help offset an expected increase in the property tax rate for residential property owners.

The tax credit, which Budget Chairman Nestor Garcia said would cost the city about $14.2 million in tax revenues, is higher than the $75 tax credit offered by Mayor Mufi Hannemann in the budget he submitted in March.

Meanwhile, the committee also accepted Garcia's recommendation to retain Hannemann's proposal to increase the tax rate for residential properties from $3.29 per $1,000 of assessed value to $3.59 per $1,000.

City Budget Director Rix Maurer III said the administration is amenable to Garcia's tax package.

Council members will finalize next month a plan to deal with the $50 million shortfall in the city's $1.8 billion operating budget for the upcoming 2010 fiscal year.

To help pay for the larger tax credit, the committee voted to delay implementation of the last phase of curbside recycling from 2010 to 2011, for a savings of about $6 million.

The delay would affect homeowners in households from Waikele to Makua. Originally slated to receive curbside recycling service in May 2010, West O'ahu residents will now likely have to wait at least a year longer.

The cut in the curbside recycling budget will not affect homes already receiving the service, nor those scheduled to get it this year.

Portions of Central O'ahu, including Waipi'o and Wahiawa, as well as remaining sections of Windward O'ahu, including Kane'ohe and Waimanalo, are starting the service this month.

Tim Steinberger, director of the Department of Environmental Services, said the West O'ahu homes affected by the cut amount to roughly 10 percent of the homes served with municipal trash pickup service.

Steinberger said cutting funds for curbside recycling will mean more waste going into the solid-waste disposal stream, sending the wrong message while some council members are simultaneously fighting against expansion and extension of the existing Waimanalo Gulch Sanitary Landfill in Leeward O'ahu.

Steinberger was also skeptical that the funding would be restored in next year's budget.

"My concern is once you defer it for one year, what's to say you're going to restore it next year?" he said.

Councilmen Charles Djou and Duke Bainum voted against eliminating implementation of what would be the final two phases of curbside recycling.

"We are going to go off-track on curbside recycling once again," Djou said.

The committee voted to keep a host of other increases in taxes and fees proposed by the administration, including: