Kusaka urges cutting
property taxes again

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By Nelson Daranciang
ndaranciang@starbulletin.com

Kauai Mayor Maryanne Kusaka unveiled her fiscal year 2003 budget yesterday, proposing an across-the-board reduction in real property tax rates.

If the Council accepts the mayor's proposal for an $89.3 million operating budget, up from $82.7 million the year before, it would be the second straight year property tax rates will drop.

Kusaka estimates the county will forgo nearly a million dollars in collections with her proposal to reduce real property taxes by 15 cents per $1,000 in real estate value. But because property values have increased, Kusaka estimates the county will collect $3.1 million more in property taxes than it did this past year.

"I certainly hope as we go through the budget we can sustain the rate reduction," said Ron Kouchi, Kauai County Council chairman.

The current residential property tax rates are $4.65 per $1,000 of valuation for structures and $5.64 for land.

Last year, Kusaka proposed keeping the tax rates the same. However, Council members dropped the tax rate for homeowners by 20 cents for every $1,000 of valuation and 10 cents for all other categories. They used money the mayor had earmarked for consulting and legal fees related to the sale of Kauai Electric to fund the reduction.

The Council was forced to increase tax rates in 1997 and 1998 amid downward-spiraling property values.

Kusaka's operating budget for fiscal year 2003, which starts July 1, includes $3 million for collective-bargaining pay raises, a $700,000 increase in health fund contributions, $750,000 more for insurance premium payments, and $1 million more for utility costs and eight new jobs.

This is Kusaka's eighth and final budget proposal. Her second four-year term as mayor ends later this year. The county charter bars her from running for a third consecutive term.

Kusaka also presented the Council with a $15.5 million capital improvements budget.