Honolulu City Council Budget Committee Reviews ENV, CSD, and HFD – March 12, 2026

The Honolulu City Council's Committee on Budget met on Thursday, March 12, 2026, at 1:21 p.m. to review the Fiscal Year 2027 operating and capital budgets for the Department of Environmental Services (ENV), the Department of Customer Services (CSD), and the Honolulu Fire Department (HFD). The meeting included presentations from department directors, followed by questions from council members. The committee also heard a presentation from the legislative branch, encompassing the City Council, Office of Council Services, City Clerk, and City Auditor.

Consent Calendar

• The budget committee heard presentations from ENV, CSD, and HFD. No consent calendar was noted.

Public Comments & Testimony

• No in-person or remote public testimony was received during the meeting for any agenda item.

Discussion Items – Department of Environmental Services (ENV)

• Director Roger Babcock presented an overview of ENV's $464.9 million operating budget, a 6% increase over FY26. The department handles 100 million gallons of sewage per day and treats 4 million tons of refuse daily (including private haulers).
• A $1.5 million pilot project will lease five zero-emission electric side-loader refuse trucks and charging infrastructure to test viability before a potential full fleet conversion. Councilmember Tupola proposed an alternative pilot using renewable natural gas from landfill methane, noting fuel could be made from the city's own trash.
• The GROW (Green Recycling of Organic Waste) program, a curbside food waste collection pilot, begins April 1, 2026, in five communities and will expand island-wide in October. The goal is to divert 60,000 tons of the 90,000 tons of annual food scraps from the waste stream. Councilmember Waters expressed skepticism about compliance, citing likely contamination and odor from green carts collected every other week. The director acknowledged contamination is a challenge and will require education and enforcement.
• ENV reported a 37% increase in participation in water conservation rebates (doubled to $200 for toilets, $150 for clothes washers, $400 for submeters) in the first two months of FY26 (January and February 2026), which reduced volume by 1.7 million gallons.
• The CARES (Customer Assistance for Residential Environmental Services) low-income sewer fee assistance program is anticipated to launch in May 2026, offering a $20/month credit ($240 annually) to households at 80% or below Area Median Income (AMI).
• The wastewater CIP includes $348 million in FY27 spending (cash and bonds), with major projects including the $461 million Phase 1 Sand Island secondary upgrade (membrane bioreactor now in startup mode). Councilmember Cordero raised concerns about the project's impact on adjacent social services, such as homeless shelters.
• The Oahu Sanitary Landfill is seeking a permit extension beyond its March 2028 expiration to fill remaining capacity (projected to last until 2031). Vice Chair Tupola expressed disappointment in the administration's plan to purchase land adjacent to the Waimanalo Gulch Landfill (Maka Eva Gulch) for a new landfill, noting a prior promise to close that site and site a new landfill elsewhere.
• ENV has 279 vacancies (20% vacancy rate) and plans to fill 43 by end of June 2026 and reduce to 16% by end of FY27. Director Babcock noted that $55.4 million in salary lapse savings remain in the sewer fund and will be used on future CIP projects, helping to moderate future sewer fee increases.

Discussion Items – Department of Customer Services (CSD)

• Director Kimberly Hashiro reported a $32.8 million combined budget (salaries $17.2M + current expenses $15.6M) for FY27, with general fund revenues projected at $228 million. The department has a 5% salary increase and added 7 reactivated positions to bring a call center in-house.
• A new digital driver's license and motor vehicle registration system (“new card system”) is in testing and will go live by April or May 2026. It will reduce wait times, eliminate separate photo lines, and allow each window to complete full transactions. Director Hashiro stated the system is not expected to reduce the workforce but will shift duties from data entry to verification and strategy.
• The new towing contract separates abandoned vehicles (CSD) from law enforcement towing (HPD) and will include large vehicles (boats, heavy trucks), eliminating the current need for multiple quotes and purchase orders.
• Two aging vehicles (15-year-old cargo van and 35-year-old cargo passenger van) will be replaced.
• The Waiʻanae Civic Center project ($4 million total: $2M in FY26, $2M added for FY27) will relocate DMV and satellite city hall staff to a new state building; interior fit-out began March 2026 and is expected to be complete in late 2026 or early 2027.
• CSD has 26 vacancies (8%); plans to fill 14 by June 2026 and the remaining 12 in FY27. The department has high turnover (41 departures since July 2025) and is implementing four additional reorganizations (including a 100-position driver's license branch reorg) to improve retention and create career paths.

Discussion Items – Honolulu Fire Department (HFD)

• Chief Kalani Hāʻo reported an overall budget increase of 1.5% (to $1.5 million) and announced the department was reaccredited for the sixth time since 2000. HFD has 136 uniform vacancies, but 95 recruits are in ghost positions, yielding 41 true fiscal vacancies. A July 2026 recruit class of 40 is planned.
• The department is seeking an unfunded FTE pool of 20 recruit positions to allow aggressive hiring without exceeding the city ordinance. Chief Hāʻo explained that a surge in retirements (from the large 1999–2001 hiring classes reaching 25 years) and the contract being in arbitration (July 2025) make it difficult to predict retirements with precision. The pool would act as a cushion.
• Overtime increased by $124,000 (to $1.124 million total), mainly for dispatch staffing, prevention bureau, and the mechanic shop to maintain an aging fleet. Supply chain issues have lengthened fire apparatus build times from 365 to over 1,000 days.
• HFD submitted a $19.9 million congressional direct spending request for a twin-engine helicopter, an aviation fuel tender, a hoist simulator, generators, and radio replacement. Decision expected in October 2026.
• Regarding a potential merger with EMS, Chief Hāʻo cited concerns: HFD responds to 40,000 of the 110,000 EMS calls, and he fears more medical calls would degrade training time for all-hazards preparedness. He stated the workgroup is still meeting.

Discussion Items – Legislative Branch Budget

• Kenny Arakaki (ASO, Council) presented a combined legislative branch request of $33.37 million (9.1% increase), largely driven by a $2.1 million increase in the City Clerk's budget for Honolulu's share of the new voting system.
• City Clerk Glenn Takahashi (retiring) noted the elections budget fluctuates by year; the FY27 request is $7.21 million, up $786,000 from the comparable FY25 budget due to collective bargaining and minimum wage increases for temporary election workers.
• The Office of Council Services requests $3.54 million (4.9% increase), primarily for the 4% exempt salary adjustment and updated ROH supplements.
• The City Auditor requests just over $2.2 million (3.1% increase) with flat FTE of 13. Increases follow salary adjustments and higher software and lease costs.

Key Outcomes

• No votes were taken during the briefing; the committee will accept supplementary questions via email, directed to the Managing Director's office.
• Chair Waters announced that administrative leave is granted for Friday, March 13, 2026, for all non-essential legislative branch staff due to severe weather, and all council hearings and meetings are postponed. Essential personnel should report as directed.