Mayor Mitch Roth and his department heads will be presenting a proposed $888 million budget to the County Council Finance Committee beginning Tuesday.
His proposed budget is $54.6 million, or 6.6%, higher than the one for fiscal year 2023-2024.
Roth said his administration is dedicated to creating a sustainable Hawaii Island where keiki and their keiki can thrive for generations to come.
“Our proposed budget reflects this commitment by prioritizing the prosperity and well-being of our community,” Roth said. “We are investing heavily in affordable housing and essential infrastructure, which are key to the growth and opportunities for our communities. Additionally, we are focusing on maintaining our parks and roads and preparing for environmental disasters.”
“We are also boosting our emergency services by increasing funding for vehicles and equipment, enhancing our ability to respond quickly and save lives. These investments are vital for the success of our island, both today and for future generations.”
In his proposal, he stated revenues are projected to increase across almost all sources including real property tax, GET surcharge and transient accommodation tax.
The increases in expenditures are primarily attributed to collective bargaining agreements, increases in use of fuel and utility services, rising insurance premiums, and additional supplies and equipment necessary to support increasing demands for county services. Contracts for all collective bargaining units will result in a $30.5 million increase to the budget for employees’ salaries, wages and benefits.
“Providing fair and adequate wages allows us to attract and retain a quality workforce,” Roth said in the proposal’s introduction.
The proposed budget increases funding to repair and perform improvements at parks and recreation facilities, increases spending for the expansion of the fire department’ s fleet of emergency response vehicles, and invests in new technology.
Additionally, the budget includes $11. 1 million to address the homeless population. It also provides $9 million for housing production.
The vast majority of the projected revenue comes from the real property tax, which is estimated to bring in $477 million, an increase of $23.3 million over last year. The increase is attributed to an increase in home values resulting in higher property tax, and new construction.
Over $115 million is expected in grant revenue, an increase of $20 million over last year. The GET surcharge is expected to add $65 million to the county coffers, and revenue from the county’s allotment of the Transient Accommodation Tax is projected at $26 million.
The highest expenditure is $210.6 million for public safety, an increase of 5.7% over last year. That is followed by pension and retirement at $96.7 million, a 9.6 % increase, and highways and streets at $94.4 million, a 24.9% increase
The proposed Capital Budget for FY 2024-2025 and the Capital Improvements Program will require an appropriation of $392 million and includes 57 projects. Of that amount, $307.5 million will be funded either wholly or partially by bonds, $42.4 million from federal grants, $41.4 million from the State Revolving Loan Fund or State Capital Improvement Projects fund, and $ 950,000 to be funded by other sources.
A highlight of capital improvement projects proposed in the budget include:
— East Hawaii Animal Control facility – $20 million
— Civil Defense land mobile radio upgrade – $2 million
— Hilo Wastewater rehabilitation and replacement – $110 million
— Naalehu Wastewater system – $11.5 million
— Repair and improvements at county parks – $10 million
— Hilo Skate Park – $3 million
— Afook-Chinen Civic Auditorium upgrades – $6 million
— Department of Public Works facility improvements – $14 million
— Mamalahoa Highway Rehabilitation – $12 million
— Hurricane Lane damage projects – $11 million
— Waianuenue Avenue bridge modernization – $14.2 million
— Kilauea Avenue Safe Routs to School – $12 million
— Kilauea Lava Recovery – $37.8 million
— Pahoa hub planning and construction – $7.2 million
— Battery charging and hydrogen station at Hilo Mass Transit maintenance facility – $8.2 million
— Haihai Affordable Housing Project – $15 million
— Ainaloa Affordable Housing – $20 million
— Ainako Affordable Housing – $16 million
The Finance Committee will hold a special session Tuesday through Thursday to begin the arduous process of reviewing the proposed budget.
“I’m expecting the special finance meetings to go more smoothly and consistently since departments have been provided a uniform template for presenting their respective budgets and program overviews,” said council Vice Chair Holeka Inaba. “In addition, the Finance Department, under the leadership of Director Diane Nakagawa and Deputy Aaron Brown, have worked to include many of the department’s supplemental requests in the initial budget.
“I am hopeful that we will be able to provide some real property tax relief to our residents and look forward to those discussions at the council, as well.”