[ The State of the City Address ]
KEN IGE / KIGE@STARBULLETIN.COM
Mayor Jeremy Harris proposed raising real property tax rates and privatizing certain facilities, including the Waikiki Shell and the Honolulu Zoo, yesterday.
‘Modest’ rise proposed Mayor Jeremy Harris proposed a "modest" increase in real property tax rates last night to help balance the city's budget because of a projected revenue shortfall of at least $160 million.
for property tax rates
Harris says it would help offset
a projected $160 million shortfallBy Crystal Kua
ckua@starbulletin.comIn his 27-minute State of the City address, Harris also proposed having private companies run the Waikiki Shell, the Blaisdell Center arena, the Honolulu Zoo and maintenance of the Pali Golf Course and certain parks.
"Every one provides its own complex situations," Harris said after the speech, regarding privatizing those facilities. "Obviously, we don't intend for city employees to lose their jobs. They would have to be shifted over to other vacancies and whatnot. It's rather complex, but I think those things that I identified certainly have potential."
City Council Chairman Gary Okino said: "I think it was a positive speech, realistic, acknowledged the areas of problems and the reasonable solutions that we have to think about."
Regarding the tax increase, Harris said it is too early to set an amount for an increase, but he said he has directed his budget director to keep tax revenues below the 1994 revenues of about $433 million.
Reaction to the tax proposal was mixed.
"We have to see how the budget is balanced and if it's necessary," Council Budget Chairwoman Ann Kobayashi said. "If there's no other alternative, we need to have a balanced budget."
Kobayashi pointed out that Harris has previously been against raising real property tax rates, so "for him to propose such a thing, it's a bit worrisome because that means there's no other way to balance the budget."
KEN IGE / KIGE@STARBULLETIN.COM
City Managing Director Ben Lee spoke to the crowd yesterday before Mayor Jeremy Harris' State of the City address.
Okino said the increase is a realistic approach to the budget.
"I think if it's a reasonable increase, the Council will support it," Okino said.
Councilman Charles Djou said: "I hope not. If (the Council) goes along with it, then it goes along with it without my support.
"In terms of his tax increase, that was disappointing, and that's not the right direction we should be taking the city."
In regards to privatization, Harris said he will not know how much money the city will save, and he would not say which parks would be affected.
"We need to work through the numbers. We need to talk to our employees," he said. "Instead of filling parks maintenance vacancies, what we could do is relocate workers from one park to the parks that have vacancies and privatize those parks from which we've relocated people."
He said he has been in talks with University of Hawaii President Evan Dobelle about the Blaisdell Arena, including the possibility of transforming it into a facility like San Francisco's Exploratorium, an art and science museum.
Harris said he has also been in discussion with the Honolulu Zoological Society regarding the zoo and talked to promoters in town with the idea of getting more use out of the Waikiki Shell, which he says is "dark" two-thirds of the time.
"We think if we can get a private operator at some of these facilities, they can provide the marketing spark," Harris said.
Djou said: "I loved his ideas regarding privatizing the zoo, as well as Blaisdell. I think those are good, creative services. If anything, I would advocate and encourage the mayor to go further and be more aggressive."
Djou said the mayor should look at privatizing maintenance at all city golf courses and all parks.
"I think it's very important to get more input on that," Councilman Donovan Dela Cruz said. "I'd like to have some discussions with other Council members, with even some of the unions that it affects. I'd like to see what occurs with those particular employees of the city."
He continued, "We have to balance the financial situation with what happens to city employees and whatever happens, that it's fair and equitable."
Kobayashi and Okino also said they would look at what impact privatization would have on jobs and employee benefits.
Djou said he wanted to hear more from the mayor on how to reduce the size of government.
"He certainly didn't say anything about reductions in the size of city government, about eliminating any boards, any commissions, any operations or programs or services, and I do think that cuts are needed in our city government."
The mayor also proposed:
>> Selling 1,200 rental housing units to nonprofit agencies and others. That could save the city $120 million of long-term mortgage debt.>> Starting monthly door-to-door curbside recycling pickup and twice-monthly, automated pickup of recyclable green waste.
>> Partnering with Hawaii Pacific University's Ocean and Marine Science Program for evening use of Hanauma Bay's education center.
>> Bulk marketing of tee times now unused at less popular golf courses and expanding golf course food concessions into full restaurants.
Major proposals of the mayor's State of the City address: Highlights
>> Make modest increases in real property tax rates to help the city cover a revenue shortfall.
>> Privatize the Waikiki Shell, Blaisdell Arena and the Honolulu Zoo.
>> Sell 1,200 rental units to private interests so the city can reduce $120 million in debt.
>> Cooperate with other government agencies to do something about traffic jams.
>> Use a "smart" debit card that will replace bus passes.
>> Install equipment at the Wahiawa Wastewater Treatment Plant to produce clean recycled water for diversified agriculture.
City & County of Honolulu
