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Tuesday, March 27, 2001



Maui County


Council balks at
Maui budget


By Gary T. Kubota
Star-Bulletin

WAILUKU >> The Maui County Council isn't enthusiastic about increasing the county budget as proposed by Mayor James "Kimo" Apana.

During interviews, several members said they want to be cautious about spending, in view of indications that the national economy was taking a turn for the worse and could have a negative effect on the Valley Isle.

"I don't think anybody on the Council feels this upturn is going to continue," Councilman Alan Arakawa said.

"We're looking at a smaller budget next year."

The Maui County Council is scheduled to hold its first budget hearing at 6 p.m. today at the Kula Community Center.

The hearings continue at the Paia Community Center tomorrow and at the Lahaina Civic Center on Thursday. Both meetings also start at 6 p.m.

Other meetings take place on April 2 at the Lanai High & Elementary School cafetorium, on April 3 at the Mitchell Pauole Center on Molokai, both at 7 p.m.; and on April 4 at Helene Hall in Hana and on April 5 at the Kihei Community & Aquatic Center, both at 6 p.m.

Citing an improvement in the Maui economy, Apana has proposed a $274.1 million budget that includes increasing capital improvement spending from $36 million in fiscal 2000-2001 to $60.4 million in the next fiscal year.

The proposed budget also includes increasing the operating budget by $25.2 million.

Apana said the county was in a good position to take advantage of low-interest bonds to finance building projects and the economy on the Valley Isle was on the upswing with visitor industry revenues up by 6 percent in the first half of 2000.

Council Budget Chairman Riki Hokama said he has some worries whether the Apana administration's revenue projections are reasonable.

"I'm not definitely sold on what direction we should take at this time," Hokama said.

"I'm looking at the county's ability to repay its debt, so I'm seriously looking at the budget."

Hokama said that while Maui County enjoys a good bond rating of A+, it has about $213 million to $215 million in long-term debt and is expected to pay $100 million in interest in the next 20 years.

He said the county is paying about $24 million annually to meet the debt.

Councilman Michael Molina said he wants to take a more cautious approach to the budget, although Apana's budget looks promising. "If we get into the red, our bond rating could go down," Molina said.

Some Council members said they supported the mayor's proposals to lessen traffic problems, such as developing a north-south collector road in Kihei and an alternate route for Lahainaluna Road in west Maui. But they were worried about increasing personnel.

Arakawa said he's looking seriously at reducing the mayor's request to add 60 positions in the county, although he supports more personnel for the new Wailea fire station and more police for Kihei.



Maui County



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