The City Council is likely to search for more to cut in the city's proposed $1.1 billion operating budget before resorting to any increase in real property taxes, Budget Chairwoman Ann Kobayashi said. Tax hike is last resort,
city budget chair saysKobayashi says trims "here and
there" still may not be enoughBy Crystal Kua
ckua@starbulletin.com
"We're looking at cuts here and there, but I don't know if we'll reach $23 million (to forestall tax rate increases)," Kobayashi said. "We're going to cut without laying off people and cutting services, and if we can't find enough cuts, we're going to have to look at property tax increases."
Those cuts could include, for example, closing the downtown satellite city hall or another satellite city hall, Kobayashi said.
The City Council is about to map out how it plans to balance the operating budget but after all nine Council members met yesterday to discuss options, no clear direction has come out on taxes, fees, cuts and other budget considerations, Kobayashi said.
"Are we going to increase property taxes? Are we going to charge $8 for a second day of trash pickup? Are we going to charge for park usage?" Kobayashi said after the meeting. "How should we handle this? ... I am still not getting a clear picture."
Kobayashi's committee is expected to meet April 24 to consider the Council's first draft of the budget. The Council will hold a public hearing on the budget on April 30.
Mayor Jeremy Harris submitted his version of the budget to the Council on March 2, which included proposed property tax rate increases.
The tax proposal calls for owners of single-family homes and apartment owners to pay the same rate. That would mean the current $3.65 per $1,000 in assessed valuation for single-family homes would rise to $3.75, but the rate for apartment owners would go down 4.5 percent from $3.93.
For nonresidential categories, the mayor is also proposing a single rate of $10.63 per $1,000 in assessed value.
An increase and change in the rate would bring in about $23 million in revenue while an additional $20 million would come from increases in assessed values.
Kobayashi said that if it becomes necessary to raise taxes, then there's one idea to spare single-family homeowners from a rate hike because many have already been hit with an increase in valuation as well. "That's a huge burden all at once."
If a tax hike is proposed, then expect restoration of cuts the Harris administration made to public safety agencies, Kobayashi said.
The Harris administration is also proposing $23 million in fee increases that includes a new $8 trash pickup charge connected to a new curbside recycling program. Council Chairman Gary Okino has proposed charging the $8 fee to everyone to continue two-days of regular trash pickup along with curbside recycling, instead of giving residents the option of getting a second day of regular pickup for $8.
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