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Fasi says city debt Former Mayor Frank Fasi says successor Jeremy Harris has increased the city's debt by as much as $1 billion during the past two years.
increased by $1 bil
under Harris
Harris officials say new debt
is only $100 million and
capital budget is downBy Gordon Y.K. Pang
Star-BulletinHarris administration officials, however, say the actual new debt is only a portion of that amount and note also that the annual capital improvements budget is less than it was under the Fasi regime.
Fasi, among those challenging Harris' bid for reelection this month, told the Star-Bulletin's editorial board yesterday that the city has been "spending money like we're on some kind of a drug.
"Last March, the City and County put us in debt by almost $1 billion," he said.
Fasi said the city actually borrowed $495 million, which computes to "$1 billion more when you consider cost overruns and principal interests on bonds."
Harris spokeswoman Carol Costa said Fasi's numbers are skewed.
While it's true that the city borrowed $495 million in March 1999, $395 million went to refinance existing debt to take advantage of lower interest rates, Costa said.
Only $100 million of that bond was new debt, she said. The rest went to "refinance our existing debt, which had high interest rates, incurred during the Fasi years at City Hall."
Fasi, during his editorial board visit, said the current administration has tried to throw money at voters in the form of high-profile but unnecessary projects such as the restoration of the Waikiki War Memorial Natatorium and new facilities at Hanauma Bay Nature Preserve.
The annual $38 million Harris' 19 vision teams receive for community-based projects was also criticized by Fasi. "We're spending too much money and mostly for political reasons," Fasi said.
However, Costa said the average capital improvements budget during Harris' six years as mayor has been $214.1 million, down from the $302.6 million average spent during the last six years of the Fasi administration.
The 2001 capital budget is $299 million, while it was $421 million in 1994, Fasi's last year, she said.
Fasi said his capital projects gave a return on their investment. He cited the development of the HPOWER plant and the purchase of the Manana and Pearl City Junction properties from the Navy -- which helped finance construction of the Ford Island causeway -- as examples.
He added that he would stop the Harris administration's practice of purchasing equipment with borrowed money.
Fasi was mayor and Harris his managing director and second-in-command in 1994. Fasi resigned that year to run for governor, giving Harris the reins at Honolulu Hale.
City & County of Honolulu
