Honolulu Budget Committee Meeting on Capital Budget and Tax Rates - March 30, 2026
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Honolulu City Council Committee on Budget Meeting - March 30, 2026
The Honolulu City Council Committee on Budget, chaired by Councilmember Okamoto, met on Monday, March 30, 2026, to discuss and vote on several fiscal year 2026-2027 budget items, including the executive capital budget (Bill 23), HART operating and capital budgets, bond authorization, the legislative budget, and a resolution on property tax rates. The meeting occurred in the aftermath of severe Kona storms, which heavily influenced discussions on emergency management, shelter capacity, and disaster response needs.
Bill 23 (2026) – Executive Capital Budget
- The committee reviewed multiple amendments to the capital budget, including procurements for the Department of Facility Maintenance (DFM) such as a mobile crane and long reach excavator, which were accepted.
- A proposed $1.5 million for pre-development planning for the Wayalua Sugar Mill Plantation Camp Project was discussed. Director Kawano noted that $3.5 million had already been invested since FY2022-2023 with little progress and that the developer had not responded. The site was also impacted by the recent Kona storms. The amendment remained under consideration.
- Chair Waters proposed acquiring the Japan American Institute of Management Science property (6 acres) in Hawaii Kai, currently owned by Kamehameha Schools, to prevent a 400-foot tower and create a community hub. Councilmember Kia Aina expressed strong opposition to alienating Kamehameha Schools lands, while Chair Waters argued the community supported the idea. The amendment was included in the CD1, but Kia Aina voted against the bill for this reason.
- Department of Transportation Services (DTS) projects: Committee accepted $200,000 for traffic engineering devices, $100,000 for traffic signals, and $500,000 for bus stop improvements. Director Morton noted 75% of DTS CIP is federally funded. Councilmember Cordero flagged discrepancies and requested future discussions on left-turn phases and pedestrian intervals.
- Department of Emergency Management (DEM) shelter initiative: Councilmember Cordero proposed $3 million for an island‑wide shelter assessment and retrofitting. Director Collins requested deferral, citing lack of capacity (only 15 staff, 8 new positions in budget vs. 25 requested). Chair Waters and Vice Chair Tupola argued for immediate action, with Tupola sharing firsthand experiences of shelter failures during the Kona storms. The committee voted to retain the $3 million amendment.
- Department of Design and Construction (DDC) projects: Multiple street and park improvements were accepted, including $5 million for Waikiki Beach sand restoration (noted as an operating cost, not CIP, by Director Millis). The fire hydrant project was deferred to BWS.
- Sanitation: Director Babcock requested reinstatement of $30 million for the Oahu Sanitary Landfill land acquisition. Councilmember Tupola suggested redirecting funds to H‑Power improvements. The amendment to delete the project was accepted.
Bill 26 (2026) – HART Operating Budget
- No public testimony or discussion. The bill was reported out for second reading without objection.
Bill 27 (2026) – HART Capital Budget
- No public testimony or discussion. The bill was reported out for second reading without objection.
Bill 24 (2026) – General Obligation Bonds
- No public testimony or discussion. The bill was reported out for second reading without objection.
Bill 28 (2026) – Legislative Budget
- An amendment was accepted to add $90,000 for council district mailers ($10,000 per district). Councilmember Cordero clarified the funds would cover postage and printing. The bill was amended to CD1 and reported out.
Resolution 26-62 – Property Tax Rates
- Chair Waters proposed lowering the residential A tier one tax rate from $4.00 to $3.50 per $1,000 of assessed value. Director Kawano estimated a revenue loss of $14.961 million. Councilmember Kia Aina noted that savings might not reach renters and that a three‑tier system under development could adjust rates. Chair Waters did not press for adoption of his CD1. The resolution was reported out for public hearing with reservations from Councilmember Kia Aina.
Key Outcomes
- Bill 23 (2026) – Capital Budget: Amended to CD1 incorporating all discussed changes. Councilmember Kia Aina voted no due to the Kamehameha Schools land acquisition. The CD1 was reported out for second reading and public hearing.
- Bills 26, 27, and 24 (HART operating, HART capital, bond issuance) were reported out without amendment or objection.
- Bill 28 (Legislative Budget) was amended to CD1 with $90,000 for district mailers and reported out.
- Resolution 26-62 (Property tax rates) was reported out for public hearing, with reservations from Councilmember Kia Aina. No rate change was adopted at this meeting.
Meeting Transcript
Aloha and good afternoon, everyone. It is again Monday, March thirty, twenty twenty-six, and at one twenty-two, I call the committee on budget back to order. Like to welcome with us in the chambers again, Committee Vice Chair Nishimoto, Council Members Talba, Cordero and Kia Aina, as well as Council members Tupola and DeSantos TAM. Members moving on to agenda item number two, Bill Twenty-three, twenty twenty-six approving the executive capital budget and program for the fiscal year July first, twenty twenty-six to June thirtieth, twenty twenty-seven. We'll first proceed with in-person oral testimony in the council chamber. Clerks, do we have any in-person testifiers for this item? Chair there, none. Thank you. Proceeding now with remote testimony. Clerks, do we have any remote testifiers for this item? Chair there, none. Thank you. Remember, we will be going through this the worksheet again on the for the C for the CD one for capital budget. I believe we have with us director Andy Calwano. No, okay. Starting off with procurement of major equipment for DFM. The budget chair's recommendation is to accept amendment, additional appropriation from executive operating proposed amendments, description to read acquisition of vehicles for the department of facility maintenance operations, including an additional mobile crane and a long reach excavator. Any discussion. It's a pleasure. Thank you very much. Budget Chair Okamoto. So responding, I guess, to the two questions. As I mentioned earlier during our testimony on the operating budget, the administration evaluates acquisitions based on the stated public purpose. Also the readiness of a project and a project's underwriting and where it stands from that perspective. With respect to the uh the James property, um I know the the property very well, and I appreciate the uh the suggestion that we purchase it. It's literally a block from my home, so I pass it every single day. Um it's a it's approximately a six-acre site, but it's currently owned by the bishops state. I'm not certain if it's even for sale or or what the stated purpose. I I assume it would be a purchase for affordable housing, but I don't think that's stated in the in the proposed um CD1. Um so I'm I'm just not certain what what we're intended to do with it. Okay, thank you, Director. I will reach you under this description for the project, provide affordable housing fund AF for any projects eligible under ROH chapter 6, Article 63, and the revised charter of the city and county of Honolulu, Section 9-204, which may be administered or managed by the city and county of Honolulu or in conjunction with private nonprofit or private developers, provided that 1.5 million dollars must be used for subsidies for pre-development planning for the Wayalua Sugar Mill Plantation Camp Project, Mill Camp Project in Wayalua, Oahu, and identify. Oh, this is the James. I'm sorry. Yeah. I'm reading the wrong one. Here we go. It's okay. I apologize. It says public and public facilities improvements in I was reading the wrong item. Yeah. Thank you for clarifying that. Okay. So just wasn't clear, but but to the extent that it's owned by the bishop's estate, and they're probably better capitalized than we are at the city. I'm not certain why we would need to buy the property. So it just wasn't clear. Happy to continue to work on it and appreciate the suggestion, but just not understanding what the per the intended purpose is. With respect to the 1.5 uh uh with respect to the 3.5 million for the Waila Sugar Mill site, um, I just want council members to uh be for awareness to be to understand that we've already invested three point approximately 3.5 million dollars in that site in uh in during fiscal year 2022 and 2023 for the acquisition of the land. We have not unfortunately seen significant progress on that site. We've not received a revised budget or schedule of stating what the developers uh intentions are moving forward, and that's been really challenging.
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