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Mayor may call meeting
over raising vehicle tax

The Council could convene
Dec. 24 for a vote on the plan
to fund police pay raises


Mayor Jeremy Harris could call the City Council into a special meeting on Christmas Eve to vote on a measure that increases the vehicle weight tax to pay for police raises, Council members said yesterday.

City & County of Honolulu

During its final scheduled meeting of the year on Dec. 3, the Council sent the mayor's proposal to raise the tax back to committee. If the council does not pass a tax increase this month, the city loses the revenue for this fiscal year.

City officials said the tax increase can take effect only on Jan. 1 of each year. To do so, it must be approved by the end of the prior year.

The mayor has been lobbying Council members opposed to the tax to change their votes, Council members said yesterday.

The mayor was unavailable for comment.

"I do know that the mayor is now trying to twist arms," said Councilman Charles Djou, who opposes raising the tax and has not been lobbied. "I know he has been working the phones and working a lot of the members to try and get them to switch."

At least one council member has changed his mind and is supporting the tax hike.

In a memo to his colleagues, Councilman Nestor Garcia said he was told by the Office of Council Services, the Council's research and legal arm, that the proceeds from the $10.5 million sale of a city parking lot cannot be used to pay for the raises, as some Council members suggested, because the money is already budgeted.

"Therefore, given the limited number of revenue sources to choose from and given limitations on other proposed options, I see no other alternative than to support the vehicle weight tax proposal," Garcia wrote.

Garcia's change means the tax increase needs one more vote to pass.

Arbitrated raises for police officers will cost $67 million over four years. The city needs to pay for $5.7 million in raises this fiscal year and nearly $13 million next year.

Harris proposed raising the passenger vehicle weight tax to 2 cents a pound, a 0.75-cent increase. Under the proposal, a 4,000-pound car would cost an extra $30 a year. The proposal also calls for the commercial vehicle weight tax to climb to 2.5 cents a pound from 2 cents.

The proposed tax increase is expected to generate $6.5 million in revenue for the current fiscal year and $13 million for next fiscal year.

Whether the Council will meet before the end of December is up in the air.

"I think it's the absolutely right thing to do at this point," said Councilman Gary Okino, who supports the increase. "I think we should do it, but I hold little hope for it happening."

Council Chairman Donovan Dela Cruz said no meeting is planned.

Djou and Okino said the Council must vote by Dec. 24, which means it must provide a meeting notice by tomorrow to meet legal requirements.

If the Council doesn't schedule a meeting, the mayor could call the Council into a special meeting -- something Harris indicated he may do, members said.



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