In delivering his sixth State of the City address, Mayor Mufi Hannemann outlined a vision for Honolulu that included his $5.5 billion rail transit project, transit-oriented development, thousands of new jobs, new construction and other initiatives to stimulate the economy.

But he left open-ended the question of whether he would be in office through the end of his term in 2012 to see it all through.

“;I've always said my overall maxim is, Leave this place better than you found it,”; Hannemann said last night after delivering his 50-minute speech.

“;I think we've made excellent strides and progress in that area, and everything I said tonight, I intend to at least get it started—irrespective of what my final decision is.”;

That final decision would be whether to leave City Hall for the state Capitol. Hannemann has been raising money and is widely expected to leave office early to run for governor.

The speech focused on the upcoming fiscal year and Hannemann's plan to stimulate the economy while facing a $140 million budget shortfall.

The mayor said he expects to unveil his full plan next week, when he delivers his fiscal year 2011 budget to the City Council.

  No Major Surprises In Mayor's Sixth State Of The City Address

 

Hannemann says while the city faces a shortfall going into this year he plans to deliver a balanced budget to the ...

[ Watch ]

 

“;I think we're going to have some good news for the taxpayers when we unveil that budget,”; he said. “;I think you'll be surprised when you see what we come up with next week.”;

As expected, Hannemann touted the benefits of rail as a major piece to solving the city's financial problems.

“;There is no other shovel-ready project anywhere in this state that will create as many jobs, in as short a time, as rail,”; he said, contending it would create an average of 10,000 jobs a year while pumping $300 million into the economy.

He repeated assurances that the city is in line to receive $1.55 billion in federal funding for the project, which has seen groundbreaking delayed as the city awaits approval of a final environmental impact statement.

During the weekend, Gov. Linda Lingle said she spoke with federal transportation officials in Washington to inform them that she would have the state conduct an independent analysis of the project's finances before giving final approval to it.

“;From what I've heard, what she said is nothing new,”; Hannemann said. “;I haven't heard anything that says the rail system of Honolulu is falling off the tracks or the federal government is going to pull back.

“;All we're asking for is expeditious review once the EIS gets to her.”;

In addition to the rail project, Hannemann announced plans to move in the next six months on 100 capital improvement projects valued at $220 million.

But the boost to the economy will not do enough to prevent the city from taking steps already taken by the state, which include two furlough days a month for employees, starting in July.

Furloughs also will lead to closing the Fasi Municipal Building and Kapolei Hale on public school furlough days, saving the city about 4.5 percent in payroll, Hannemann said.

Meanwhile, 5 percent salary reductions for members of his Cabinet will continue in the next fiscal year and be extended to other nonunion executive management positions, the mayor said.

City Council members in the audience said they are anxious to see the mayor's budget proposal next week.

“;I think it was a very optimistic outlook for the city,”; said Councilman Ikaika Anderson.

“;I was hoping to hear a little bit more about his proposal for real property taxes and whether or not he will have two separate rates being proposed for residential properties.”;

Under legislation approved last year, the mayor may propose separate property tax rates for owner-occupants and for owners who do not live on their properties.

Councilman Charles Djou, a frequent critic of the Hannemann administration's spending and a possible Republican candidate for U.S. Congress, likened the speech to a bathing suit.

“;The mayor's speech was like a bikini: What he said was interesting, but what he hid is what's important,”; Djou said.

“;The mayor delivered a good speech, but he failed to say if this would be his last State of the City address, if he's planning to raise taxes or what programs he plans to cut.”;

To download the full text of the mayor's State of the City address, please click here.