Council trio
sparks budget dispute

They urge the public
to oppose what they see as a
property tax hike

By Pat Omandam
Star-Bulletin

With two days before the final vote on the city budget, three members of the Honolulu City Council are advocating public opposition to a Council resolution they say increases property taxes to balance the city budget.

But Council Chairman Jon Yoshimura today disputed that, calling their action purely political: "I'm just disappointed they're manipulating people to pursue their own political agenda."

Council members John Henry Felix, Donna Mercado Kim and Mufi Hannemann took out ads published today in the Honolulu Star-Bulletin and the Advertiser urging Honolulu residents to oppose higher taxes.

In their ads, they said they're concerned that city government is not doing enough to cut spending in this down economy. They said Mayor Jeremy Harris wants to increase property taxes by 13 percent for condos and apartments, 10 percent for agricultural lands, 9 percent for industrial lands and 4.5 percent for single-family homeowners.

They criticized the mayor and the Council leadership for what they say is an $8.5 million increase in the city operating budget, a $15 million increase in the city capital improvement budget, and a work force that has been expanded by 24 jobs.

Kim today said the public is being told the budget is revenue neutral when in fact it increases property taxes for residents at a time when property values and assessments, as well as the state economy, are down.

Condo and apartment owners last year saw a 12 percent increase in their property taxes with no increase in city services. To raise their taxes by 13 percent this year will mean a jump from $352 to $449 in property taxes per 1,000 square feet in two years, Kim said.

And she said the motor vehicle registration fee -- which is added on top of all other car fees such as the vehicle weight tax -- would go from $10 to $20."These are the concerns that we raised," Kim said. "We want to be straightforward to the public."

Hannemann said there is time for the Council to fix the budget. The deadline is June 15.

Yoshimura said he is disappointed in the three because prior to their ouster from power they backed increased property tax rates in the proposed city budgets. What brought the flip-flop? Yoshimura wondered.

"When they were in charge, they saw the need to raise the rate so the revenue is neutral. So now they see an easy political gain they're willing to take, no matter what the position is."

Yoshimura said the city budget up for final vote Wednesday is more austere than last year's, which was under the control of Hannemann and Felix. Yoshimura said tax rates must be increased because the city has been taking in less revenue for nearly six years. In 1994, the city took in $432.7 million property tax revenue; in fiscal year 2000, it will be $392.8 million, he said.

City Budget Director Malcolm Tom said today property taxes are being adjusted so the revenue taken in remains at $393 million. On average, no one will pay more or less in property taxes than they did last year or even the year before.

"There is no increase in real property taxes," he said.