---

DENNIS ODA / DODA@STARBULLETIN.COM Mayor Mufi Hannemann delivered his first State of the City address yesterday in Honolulu Hale.

---

Mayor calls
for fee hike

Hannemann wants
to double sewer bills
over the next six years

Sewer bills would double after six years under a fee increase proposed yesterday by Mayor Mufi Hannemann during his State of the City address.

Mayor pledges funds for more patrol cars Other commitments Mayor Mufi Hannemann made in his speech were: » Pledging $1.8 million for 40 more patrol cars for the Honolulu Police Department and funding for 15 additional "critically needed" positions. » Renovating long-neglected fire stations at a cost of $2.25 million and spending nearly $1 million for two new fire engines. » Rolling out "innovative ideas" -- including some online and e-mail service -- to address the backlog in building permits. » Keeping satellite city halls at Ala Moana Center, Pearlridge and Windward Mall open until 9 p.m. one night a week as a test to see if the public will use the extended business hours. » Reducing lines at driver's licensing locations by making it possible to request driver's licensing road test appointments online. » Increasing property tax credits for those low-income homeowners 55 years and older, and a "modest" tax break for owners of agriculture land. » Offering "modest" pay raises for city employees.

"All we're trying to do is raise enough money to cover operating expenses and debt service," said city Department of Environmental Services Director Eric Takamura.

Hannemann called for a 25 percent increase in the rate for next fiscal year, which begins July 1, and then 10 percent for each of the next five years.

The average bill would increase to about $41 from $33 the first year of the hike, and by the end of the sixth year, the average monthly sewer bills would jump to $66.

Current sewer fee revenues of $113 million would rise by about $28 million in the first year of the increase.

Members of the City Council appeared resigned to having to increase sewer fees.

"As high as it sounds, I think that's within the ballpark. ... We are behind in what we need to do," Councilman Gary Okino said.

"It's a lot, but I think it's a reflection of how bad shape our sewer system is in," Councilman Charles Djou said. "I'm going to look real hard at what the administration is proposing. The amount seems high to me, but I acknowledge that it may be necessary."

Yesterday was Hannemann's first State of the City address, during which he criticized former Mayor Jeremy Harris' administration for "a clever game of budgetary obfuscation and misdirection."

For example, Hannemann said that the Harris administration failed to raise sewer fees in the past 12 years to underwrite sewer improvements mandated by a federal consent decree.

Instead, the Harris administration chose to "raid" the sewer fund, transferring $340 million to the general treasury fund to avoid having to raise property taxes.

The Harris administration had called the move a reimbursement to the general fund for past sewer-related construction projects paid for by the general fund.

---

DENNIS ODA / DODA@STARBULLETIN.COM Members of Mufi Hannemann's Cabinet watched yesterday as he gave a State of the City address in Honolulu Hale.

---

Hannemann vowed yesterday never to use the sewer fund for anything but fixing sewers.

Okino said he believes that the public will not be happy about the sewer fees increase, but once they are aware of the sewers' bad condition, "I think they will understand that's what we need to do."

For example, Okino said a lawsuit filed last year by the Sierra Club and other environmental groups over repeated sewage spills opens up the city to $800 million to $1 billion in liability if necessary improvements are not done.

Council Budget Chairwoman Ann Kobayashi said citizens will not only be hit with the sewer fee hike, but also rising property tax assessments.

"We're going to have to find the right balance," said Kobayashi, who noted that the Council is looking at some forms of tax relief.

Hannemann said that now is not the time for wholesale rollbacks in property tax rates. "We'll need every penny to balance our budget," he said.

Several councilmembers also said it was refreshing to get a "truthful" view of the city's finances instead of the rosy fiscal picture painted by Harris in previous State of the City addresses.

"I really commend (Hannemann) for having the courage to share the real state of the city. It's not easy being the mayor of bad news," Council Chairman Donovan Dela Cruz said.

Kobayashi added: "He laid out the bleak picture, but that's true. At least he had solutions to try to make things better."

---

DENNIS ODA / DODA@STARBULLETIN.COM Mayor Mufi Hannemann gave his first State of the City address yesterday in the City Council chambers in Honolulu Hale. His speech included his plans to declare a "war on potholes."

---

Hannemann also declared a "war on potholes" in outlining a plan to combat deteriorating city roads, vowing to fix 120 lane-miles of roadway between now and December 2006. His plan has three parts:

Hannemann also announced that curbside recycling will begin this summer, first in Central Oahu, the North Shore and Windward Oahu. The remaining parts of the island could be in place by the fall.

Plans by the Harris administration to commence curbside recycling last year stalled when the United Public Workers union, which represents city garbage workers, filed a grievance.

Hannemann had previously said that he had been in negotiations with the union to resolve the labor dispute, but his administration was mum yesterday on whether an agreement was reached. A call to UPW state Director Dayton Nakanelua was not returned.