Honolulu City Council Budget Committee Meeting - June 23, 2026

The Honolulu City Council Budget Committee met on Tuesday, June 23, 2026, at 10:03 AM in the Council Chamber. The meeting covered seven agenda items, including bills on affordable housing loans, parking management, property tax relief, and resolutions authorizing bond issuances. The committee advanced several measures while postponing one after extensive discussion.

Public Comments & Testimony

• Bill 78 (Parking): Mariah Yoshizu (Ulupono Initiative) spoke in strong support of Bill 78 in its original form, but expressed concerns that the proposed CD1 would weaken the bill's goals of creating a simpler, data-driven parking management system. She asked the committee to advance the original bill.
• Bill 40 (Real Property Taxation): Ivan Almida, a parent of an Ulana Ward Village affordable housing owner, testified in support of the original Bill 40 but opposed the CD1. He noted that the remission process in the CD1 would not provide relief for the current tax year because it requires full payment of the high taxes first. He also cited administrative complexity.
• Bill 40 (Real Property Taxation): Christine Atoza, speaking remotely, strongly supported Bill 40. She described her son's purchase of an affordable unit at Ulana, noting the appraised value was listed at ~$691,000 with an estimated $2,100 annual property tax, but the actual assessment of $1.3 million and residential A classification resulted in a nearly $7,500 tax bill.

Discussion Items

• Bill 20 (2025) – Affordable Housing Loan Program: Introduced by Councilmember Tupola, this bill creates a loan program for prospective homebuyers. Key amendments in the hand-carried CD1 include: AMI income limit set at 140% (down from 160%), a filing deadline, documentation requirements, mandatory rulemaking by the Department of Budget and Fiscal Services (BFS), and a sunset date. Councilmember Tupola stated the bill had been in development since February 2025 and received 32 testimonies in support. Director Kawano (BFS) requested deferral for further work, citing the constrained 2027 budget and the need for more detailed rulemaking. Director Krucke (DCS) concurred, noting overlap with existing HHFDC and DCS programs. Councilmember Cordero argued that framework bills often precede funding and that rulemaking allows for collaboration. The bill is effective July 1, 2027.
• Bill 78 (2025) – Parking Management: The proposed CD1 removed on-street parking provisions, narrowly applying to city garages. Director Morton (DTS) stated the CD1 eliminates key pricing flexibility and does not address the ~tens of millions in deferred maintenance. He urged a reworked approach preserving council oversight while allowing operational flexibility. Councilmember Kia Aina expressed grave concerns about potential $8/hour rates under demand pricing, particularly impacting kupuna using city lots in Kailua. Councilmember Cordero recommended more time for stakeholder discussions. The chair postponed action.
• Bill 29 (2026) – Rural Property Taxation: Introduced by Councilmember Dosantos Tam, the bill streamlines filing requirements for affordable housing projects to maintain property tax exemptions. Director Kawano strongly opposed, arguing that current regulatory agreements are reasonable and not burdensome given the large tax benefits ($300,000–$400,000 per project annually). He offered to work with specific projects. Councilmember Kia Aina asked about alternative easier methods, and Director Kawano maintained the current process is straightforward. The bill was reported out for second reading and public hearing.
• Bill 40 (2026) – Real Property Taxation: This bill addresses the tax burden on owner-occupied affordable condominium units, specifically Ulana Ward Village. The posted CD1 creates a remission process for homeowners who received a residential A classification due to closing after the September 30 deadline. Director Kawano supported the CD1, calling it the most efficient way to remedy the situation. Councilmember Waters raised the issue of single-family homeowners in similar situations but the director noted the bill is specifically for condominium projects. Councilmember Kia Aina praised the relief but urged broader consideration of similar cases. Councilmember Dosantos Tam highlighted that the project is entirely affordable and distinguished by its regulatory agreement with HCDA. The bill was amended to CD1 and reported out for second reading.
• Resolution 26-145 – General Obligation Bonds ($205M): Authorizes up to $205 million in GO bonds for capital projects. Director Kawano presented the request. A brief procedural discussion arose regarding whether the mayor had signed Bill 24 (geo authorization) within the 10-day period after transmission. Corporation counsel recommended executive session, but Chair Waters withdrew the question after a recess. The resolution was adopted.
• Resolution 26-146 – General Obligation Bonds for Rail ($11M): Authorizes $11 million for the Honolulu Rail Transit project. No testimony. Adopted.
• Resolution 26-147 – Acceptance of Gift for Procurement Conference: Accepts a gift valued at $5,600 from NASPO for two BFS employees to attend the REACH conference in Oklahoma City (July 21–25, 2026). Director Kawano and Division Administrator Paula Youngling explained the lottery selection process and benefits of past conferences (e.g., AI training). The resolution was amended to a CD1 (conforming dates) and adopted.

Key Outcomes

• Bill 20 (2025) : Amended to hand-carried CD1 (OCS2026-0396/6-22-2026); reported out for third reading. (Vote: no objections noted.)
• Bill 78 (2025) : Action postponed to a date and time to be determined by the chair. (Vote: no objections noted.)
• Bill 29 (2026) : Reported out for second reading and scheduling of a public hearing. (Vote: no objections noted.)
• Bill 40 (2026) : Amended to posted CD1 (OCS2026-0384/6-16-2026); reported out for second reading and public hearing. (Vote: no objections noted.)
• Resolution 26-145 : Adopted. (Vote: no objections noted.)
• Resolution 26-146 : Adopted. (Vote: no objections noted.)
• Resolution 26-147 : Amended to CD1 (conforming dates); adopted. (Vote: no objections noted.)

Announcements: Councilmember Okimoto announced that the Honolulu Board of Realtors and the Real Property Assessment Division will host community events at Pearl Ridge Farmers Market on July 11 and July 18, 2026, from 8 to 11 AM to assist with homeowners' exemption inquiries.