Budget Committee Meeting - March 3, 2026: Honolulu City Council Actions
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Budget Committee Meeting - March 3, 2026
The Honolulu City Council Committee on Budget met on Tuesday, March 3, 2026, at 10:01 a.m. to discuss eight agenda items, including resolutions for fund transfers, a write-off of uncollectible debts, and a bill to modernize parking rates. The meeting saw robust debate on homeless services, CDBG funding, and a $1.28 million debt write-off for a nonprofit with substantial assets.
Public Comments & Testimony
- Bill 78 (Parking Modernization): Jolie Tokusato (Local 5) testified against the bill, arguing that adjustable-rate parking meters would harm working people who rely on cars for errands and commutes. She stated, "Nickeling and diming us to death" and urged deferral. Micah Monacata (Ulupono Initiative) testified in support, stating the bill creates a "modernized management system" that improves access and reduces congestion, citing similar programs in San Francisco and California.
Discussion Items
- Bill 1 2026 CD1: The committee reported out the bill for passage on third reading without discussion or testimony.
- Resolution 26-34 (HONU Program Expansion): Director Anton Krucke (Dept. of Community Services) presented the request to transfer $3,193,009 to expand the HONU homeless outreach program from four to eight tents. Committee Vice Chair Nishimoto questioned budget details, including $239,000 for "contracts for services" and $112,000 for "additional funding to existing contract." Councilmember Talba expressed concerns that the program in his district (Waipahu) attracts homeless from outside, and that local homeless individuals report being unable to access HONU. He noted that 314 intakes occurred in Waipahu, but many were from elsewhere. Krucke reported a 50-65% success rate in triaging people to shelters or mainland homes. The resolution passed unanimously after discussion.
- Resolution 26-36 (CDBG Action Plan): Krucke presented the annual action plan for HUD funds. Councilmember Kiaina strongly criticized the use of CDBG funds for city administrative costs, saying, "Why are you raiding the CDBG fund when nonprofit organizations that help our homeless communities are out there?" He noted that parks and recreation received $700,000 despite the council setting aside $8 million in TAT funds. Kiaina requested a deferral for more information. Councilmember Tolba supported the deferral. The chair postponed action to a date to be determined.
- Resolution 26-37 (Write-off of Uncollectible Debts): Deputy Director Carrie Castle (BFS) and Director Krucke presented three debts: $4,021 (liquor violations), $4,333 (roads/sidewalks), and $1,282,606.70 (Eva Holmes LP). The largest debt was interest accrued from a failed LITEC program (2006-2011). Chair Waters questioned why the city would forgive the debt when EAH Housing (the debtor) has $219 million in unrestricted net assets, and why the resolution claimed a collection agency deemed it uncollectible. Director Krucke explained it was an accounting entry from a restructured loan. Chair Waters noted reservations but the committee voted to pass the resolution out, with Waters stating he would not schedule it for full council until more information was provided.
- Resolution 26-46 (Hanauma Bay Security): Deputy Director Kehaulani Pu'u (Parks) requested a $540,000 transfer from salaries to cover security guard contract shortfalls. Councilmember Kiaina asked about the Hanauma Bay education program and the status of a new vendor. Pu'u confirmed a recommendation was submitted. The resolution passed unanimously.
- Item 6 (Salary Commission Review): No commission representative appeared. The chair postponed consideration to March 31, 2026, to prepare a draft report.
- Item 7 (Real Property Tax Boards of Review): Administrator Steven Takara (BFS) discussed vacancy challenges. Councilmember Kiaina offered to help recruit board members. The item was postponed to March 31, 2026.
- Bill 78 (Parking Modernization): Director Roger Morton (DTS) and Chief Planner Chris Clark presented a bill to enable dynamic pricing for on-street and off-street parking (range $2-$8) to increase turnover and fund deferred maintenance ($100 million). Clark explained that rates would adjust by $0.25 every three months based on occupancy data. Councilmember Kiaina expressed concerns about safety in garages, especially for women. No action was taken; the item was for discussion only.
Key Outcomes
- Bill 1 2026 CD1: Reported out for third reading (no vote recorded, unanimous consent).
- Resolution 26-34: Adopted (unanimous).
- Resolution 26-36: Postponed to a future date (deferral motion by Councilmember Kiaina, seconded by Tolba, approved).
- Resolution 26-37: Reported out for adoption, with Chair Waters vowing to hold the item in committee pending further information (vote: approved, with reservations from Waters).
- Resolution 26-46: Adopted (unanimous).
- Item 6 (Salary Commission): Postponed to March 31, 2026.
- Item 7 (Tax Boards): Postponed to March 31, 2026.
- Bill 78: No action; discussion only.
Meeting Transcript
Aloha and good morning, everyone. It is Tuesday, March 3rd, 2026, and the time is 10.01 a.m. Will the committee on budget please come to order? I'd like to welcome to the committee to the chamber committee members who are present. Committee vice chair Nishimoto, Council Members Kia Aina and Talba. Although remote testimony is although remote oral testimony is being permitted, this is a regular in-person meeting and not a remote meeting by interactive conference technology under HRS Section 92-3.7. Therefore, this meeting will continue notwithstanding loss of audio-visual communication with remote testifiers or loss of the public broadcast for the meeting. Members of the public will be allowed to provide oral testimony on all items on the agenda in two ways, in person in the council chamber and remotely via video conference or phone. Remote and in-person oral testimony will be allowed when each agenda item is taken up. Before testifying, each person shall state their name. Each speaker may not have anyone else read their statement and is limited to a one-minute presentation on each item. As both English and Hawaiian are official languages of the state of Hawaii, pursuant to Article 15, section 4 of the Hawaii State Constitution and section 1-13 of the Hawai'i revised statutes. Members of the public may testify in either language. For oral testimonies offered in Olalo Hawaii, additional time as may be necessary will be allowed for the testifier to provide an English translation of their testimony. All persons who have registered to testify in person will be called upon first. When your name is called, please come up to the testifier podium. Persons who have not registered will be given an opportunity to testify following the registered testifiers. After in-person testimony has concluded, I will proceed with remote testimony via video conference or phone. When I call your name, please monitor your screen and follow the prompt to unmute. For those who are joining us by telephone only, please press star nine if you wish to testify, and I will identify you by the last three digits of your phone number. When your number is called, please listen to for the prompt to unmute and press star six. Video conference from a quiet location if possible. If you are also watching the proceedings on Olelo, please mute your television at the time you are called to testify. So this is really important. Chair There Nan. Thank you. Seeing no testimony members, we are in discussion. Seeing no further discussion, the chair recommends that Bill 1 2026 CD1 be reported out for passage on third reading. Any discussion, any objections, any reservations? Hearing none, so ordered. Thank you, Dr. Kobayashi. Moving on to agenda item number two, resolution 26-34. This resolution authorizes a total transfer not to exceed $3,193,009 in general fund monies from the provision for homeless activities, activity current expenses character of expenditure, consisting of 1,932, 795 to the community-based development activity salary character of expenditure. 480,759 to the community-based development activity, current expenses character of expenditure. And $780,400 to the community-based development activity equipment character of expenditure to cover salary expenses, current expenses, and equipment required to fund the expansion of the homeless outreach and navigation for unsheltered persons HONU program. And with us this morning, we have from the Department of Community Services, Director Anton Krucke. Aloha, and good morning, Director Krucke. Good morning, Chair, members of the council. Anton Kruckey, Director of the Department of Community Services. With your approval of this, what this would allow is an expansion of the HONU program. It's been a very successful tool for us in the city where we can take people on a 24 by 7 basis and take them right to HONU where it's triages them. Sometimes into treatment. And so we had four tenths and we wanted to expand to eight tenths. And so these funds will allow us to fund HONU for both the equipment and the supplies and the personnel. Thank you, Director Cruckey. Members, do we have any questions for the director? Um committee vice chair, Nishimoto, followed by Councilmember Tolba. Okay. Thank you.
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