Kauai mayor raises
budget $13 million

By Anthony Sommer
Kauai correspondent

LIHUE >> A fiscal year 2002 budget calling for an 18.4 percent spending increase was sent to the Kauai County Council late yesterday by Mayor Maryanne Kusaka.

Kusaka asked for an operating budget of $82.9 million compared with the $70 million in the current year's budget.

The budget calls for no tax relief even though property tax collections are expected to be up 9.9 percent due to the increase in valuations resulting from Kauai's ongoing real estate boom.

Total property valuations in Kauai County are expected to increase to $6 billion next fiscal year from $5.5 billion this year.

Since taking office, Kusaka has asked for and received record tax increases of about 18 percent on residential property taxes.

The increases were imposed during a period when property values were declining.

The largest single spending increase in Kusaka's proposal is $6.4 million for increased employee wages and benefits as a result of collective-bargaining agreements.

Another major hike is $2 million requested for consulting and legal fees "to study issues raised by the unsuccessful sale of Kauai Electric last year," according to Kusaka's budget message.

An agreement between Kauai Electric owner Citizens Utilities and a cooperative formed by a group of Kauai businessmen was rejected by the Hawaii Public Utilities Commission last summer.

Kauai County continues to insist it has not decided whether to make an offer to buy Kauai Electric, but the $2 million request is a tenfold increase over the $200,000 in consulting fees being spent to study the matter this year.