Council deal secures
passage of city budgetThe members also line up
enough votes to override a veto
City Council members struck a deal yesterday setting the stage for passage of a $1.2 billion operating budget, avoiding the possibility that the mayor's budget proposal would automatically take effect.
"It's our job to pass a budget. I think we would've been seen as pretty irresponsible for not coming up with our own budget," Council Chairman Gary Okino said.
"So from the standpoint of the Council's integrity and reputation, it's very important that we have consensus on the Council. Now we do."
Council members also said there are at least six votes to override any veto by the mayor.
Before yesterday's agreement four members of the Council favored one budget proposal, while four others favored another. The swing vote, Charles Djou, would have been absent for the final vote, having been called for training in the Army Reserve. The deadlock would have allowed Mayor Jeremy Harris' budget proposal to become law.
With yesterday's agreement the Council Budget Committee passed the budget.
While the mayor has not yet decided whether he will veto the budget following the final Council vote yesterday, he said the budget passed yesterday has "questionable priorities" and other problems.
"I think on whole it's very ironic that the Council ended up balancing the budget doing exactly what they criticized the administration for doing last year," the mayor said.
"It is ironic, but I told the mayor it's kind of survival at this point," Okino said.
Gone is Council Budget Chairwoman Ann Kobayashi's initial plan to count $7.7 million as projected revenue from the potential sale of the downtown municipal parking lot known as Block J.
Harris had criticized the plan earlier as "double counting" because the administration already had $15 million in the budget designated as revenue from the Block J sale.
The Council instead gave the administration the authority to refinance debt to realize about $8 million in savings that could be used to balance the budget in case Block J does not sell or if money from this year that the administration was counting on to carry over for next year did not materialize.
Last year, Kobayashi and other council members slammed the mayor for using restructuring of debt as a tool to balance the budget.
"It's hypocritical," Harris said.
Okino said that there is a downside to the refinancing plan.
"We're on notice that our bond (credit) ratings are in jeopardy if we continue to refinance our debt," Okino said.
To prevent the city's credit rating from falling, the city has to show a willingness to raise revenues and fees and an inclination away from refinancing or creating more debt by spending too much on construction projects, Okino said.
He said he believes the city will not have a problem with the restructuring plan because it is not a large amount and the Council is showing a willingness to raise revenues.
Harris also questioned some of the Council's spending priorities:
>> A $100,000 cut that will close two Satellite City Halls while spending the same amount on the Okinawan Festival.
>> Cutting the budget for road maintenance and automotive parts for city vehicles while spending $190,000 on a consultant to plan a Hawaii State Association of Counties conference.
The mayor maintains that the Council budget plan is still overstating revenue from park and bus fees. He also said that three to five employees will be laid off because of salary cuts.
Kobayashi pointed out, however, that the Council did restore about $4 million in expenses and salaries. The added money included $1 million each to the Police and Fire departments to restore uniformed positions that the administration had cut.
"I think it worked out fine, and I hope we can pass this budget ... unanimously," said Kobayashi, who added that she believed the budget will be able to withstand any legal challenges.
Harris said he was also disappointed that the Council failed to pass his curbside recycling plan.
But Okino said that the Council would go ahead with a curbside recycling and trash collection program to be implemented by July 2004, and he plans to introduce a resolution calling for a study to implement a pilot program.
Council members tried to show a united front yesterday. Even Djou voted for a budget that uses $23 million in revenues from increases in property tax rates, which he has adamantly opposed.
Djou said that he voted for the budget in committee as a show of solidarity. "It's for the sake of Council unity here."
