Maui County BFED Committee Meeting – March 3, 2026: Budget Amendments for Wastewater, Housing Repayment, Recovery Funding, and FY27 Budget Process
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Maui County Budget Finance Economic Development Committee Meeting – March 3, 2026
The Budget Finance Economic Development (BFED) committee convened on March 3, 2026, at 9:04 AM to discuss four agenda items: a budget amendment for the Central Maui Wastewater Reclamation Facility (Bill 30), a discussion on repayment to Kamalani Ventures LLC for overpayment (Bill 34), a discussion on conditional language for recovery funding for Imua Family Services and the Native Hawaiian Education Association (Bill 29), and a discussion on procedures for the Fiscal Year 2027 budget. The meeting concluded at 12:05 PM.
Public Comments & Testimony
- Dean Wong (CEO, Imua Family Services) testified in support of Bill 29, explaining that $758,973 is needed to replenish donor funds spent on off-site infrastructure improvements required for permits for the Imua Inclusion Preschool. He noted the project has been in permit processing for five years, with unforeseen costs including replacing a sewer line, adding fire hydrants and manholes, and filling a hollow street.
- Remy Mitchell (Director of Housing) testified on Bill 34, explaining that Kamalani Ventures LLC overpaid the county $234,050 due to a miscalculation: the developer paid based on 170 workforce housing units built but the minimum requirement was 115 units. Only 30 units were sold as workforce housing, leading to a refund request for the overpayment on 55 units.
- James Langford testified on Bill 30, expressing interest in the county’s planned RFP for grant software and noting he had previously submitted work on grant software.
- Tom Crowley testified against Bill 34, arguing that Kamalani condos failed to provide affordable housing, with only 30 units sold as deed-restricted workforce housing. He criticized the developer for mortgage steering and urged the county to ensure no affordable housing credits were issued from the project.
- A testifier (name not given) at the end of the meeting advocated for Hawaii to issue its own currency and not invest in U.S. Treasury bonds.
Discussion Items
Bill 30 – Amendment to FY26 Budget: Central Maui Wastewater Reclamation Facility ($3.5 million)
- The bill would increase general fund carryover savings by $3.5 million and transfer the amount to the General Excise Tax (GET) fund to cover a state grant that lapsed in June 2024. The state had appropriated $3.5 million in July 2021 for the design phase, but due to miscommunication and staff turnover, the funds were not obligated in time and lapsed.
- Budget Director Leslie Milner explained that the county has since improved its grant tracking process, added a grant oversight employee, and is working on an RFP for grant management software.
- Director John Agawa (DEM) noted the project is on track with 60% design completed, aiming for operational in late 2029/early 2030. The total design contract is $16.7 million plus $2 million for permitting.
- Council concerns: Several members expressed frustration over the lapse but acknowledged the importance of the project. Discussed whether the state’s requested $10.5 million for FY27 could be used to cover the shortfall if pre-award costs are allowable.
Bill 34 – Discussion on Repayment to Kamalani Ventures LLC ($234,050)
- The proposed repayment corrects an overpayment under Maui County Code Section 2.96 for market-rate units sold without deed restrictions. Kamalani Ventures paid $675,700 in 2018-2019, but the department determined only $441,650 was owed.
- Director Mitchell detailed the calculation: the developer was required to build 115 workforce units but built 170. They sold 30 as workforce, leaving 85 required units sold at market. However, the developer mistakenly paid for 140 units (170 minus 30). The overpayment on 55 units resulted in the $234,050 refund.
- Council members strongly criticized the developer for mortgage steering and poor outcomes—only 30 workforce units sold. Members expressed reluctance but acknowledged the refund is required by code. Councilmember Rollins Fernandes stated she would not support the bill at final reading.
- This item was a 7B discussion only; no vote taken.
Bill 29 – Discussion on Recovery Funding for Imua Family Services ($758,973) and Native Hawaiian Education Association ($390,000)
- Office of Recovery Administrator Helene Kawa explained that $390,000 would support renovations at the Keola Ho’ola Community Resiliency Center in Lahaina, a leased space (three-year lease ending August 2027, with renewal options). The center provides behavioral health services for wildfire survivors. Construction is nearly complete but needs additional funds.
- $758,973 for Imua Family Services covers unforeseen off-site infrastructure costs (sewer line, fire hydrants, road repair) required for the preschool building permit. Dean Wong had earlier testified on this.
- Council concerns: Councilmember Batangan asked for confirmation that all construction contracts went out for bid, citing prior concerns about a potential sole-source contract. Councilmember Paulton questioned the wisdom of investing in a leased space when improvements become landlord property. Verbal agreement from landlord to extend lease if needed was noted. The item was a 7B discussion; no vote.
BFED 1 – Proposed FY27 Budget Process and Procedures
- The committee discussed the upcoming budget session schedule, including a standard questionnaire letter to departments. Key dates: questions due March 10 (standard letter), March 27 (for departments appearing April 1, 6, 7), March 30 (other chamber departments), and April 2 (excused departments). District residency meetings: Upcountry (April 1), Makawao/Haiku/Pāʻia (April 2), East Maui (April 6), South Maui (April 8), West Maui (April 9), Molokaʻi (April 13), Lānaʻi (April 15), and Central Maui public hearing (April 17).
- Members provided input on which departments should appear before the committee: Emergency Management, Planning, and Personnel Services were suggested. The list is flexible. Member Johnson requested a master list of grants executed vs. held up. The calendar will be updated.
Key Outcomes
- Bill 30: Motion to recommend passage on first reading (with non-substantive revisions) carried by voice vote. (Members present: Vice Chair Batangan, Cook, Johnson, Lee, Paltin, Rollins Fernandes, Selenisi; absent: none noted.) The bill will proceed to full council.
- Bill 34: No action taken; will be on the council’s Friday agenda for second reading. Committee discussion highlighted systemic issues with the affordable housing code.
- Bill 29: No action taken; deferred for final council reading. Members requested written confirmation on bidding compliance for Keola Ho’ola construction and a status update.
- FY27 Budget Process: Committee agreed to proceed with the proposed schedule. Departments will receive a standard questionnaire letter by March 10. Members to submit additional questions to BFED staff by March 10 for the standard letter, and by specified dates for department-specific questions. District meeting dates were confirmed.
Meeting Transcript
Good morning, everybody. Welcome to the budget finance economic development committee. It is now nine oh four AM, and this meeting is being conducted in conducted in accordance with the sunshine law. And as a reminder, when your name is called, if you're not in the council chambers, please identify by name who, if anyone is in the room vehicle or workspace with you today, and minors do not need to be identified. Committee voting members. Committee vice chair member Batangan. Good morning. Aloha Kakahiakakako. Good morning. Member Cook. Good morning. Hello, good morning. Member Johnson is not here. Chair Lee is not here. Member Paul Ten, good morning. Aloha kakayaka, live in the Iraq from the council chambers. Good morning. Member Rollins Fernandes, good morning. Aloha Kakayakakako. My Molu Kaino Yahina. I'm at my uh private residence alone. Uh, there are currently no testifiers at the Moloket District Office. Okay. Um, and Member Selensi. Alohaya Kakako Maka Ikina. Kiao Ne here at my home office. I'm here by myself, and no testifiers at the HANA District Office. Okay, thank you. Uh we have with us today budget director, also Department of Environment Environmental Management Director, Deputy Director of Finance, Director of Housing, Managing Director or Representative. Um not confirmed yet. Office of Recovery Administrator or Representative, not confirmed yet. Director of Public Works. Um, I think Member Molina, uh, Director Molina is going to be joining us online. Deputy Corporation Council Wigglesworth, and as well as our BFED staff, thank you, everybody, and good morning. Um, please see the last page of the agenda information on meeting connectivity. Thank you, members, for attending today's meeting. Um we have um four items on the agenda this morning. The agenda items are BFED 47, Bill 30, 2026, amending the fiscal year 26 budget, um, increase estimated revenues, carryover savings, general fund transfer to the general excise tax fund, department of environmental management, um, central Maui Regional Wastewater Reclamation Facility. It is the it is about 3.5 million dollars. Um BFED 2026, discussion discussion on Bill 34 2026, amending fiscal year 26 budget, affordable housing fund repayment to Kamalani Ventures, BFED 2027 discussion on bill 2926, amending fiscal year 26 budget, department of management, office of recovery program, conditional language for native Hawaiian Educational Association and Imua Family Services. Also, BFED 1 proposed fiscal year budget for the county of Maui. Do we have any testifiers? Yes, Chair. We currently have two testifiers signed up. Okay. Um, so testifiers um wanting to provide testimony should sign up with staff, join the online meeting via the teams link or call in to phone number noted on today's agenda. Written testimony is encouraged and can be submitted via the e-comment link at Maui County.us backslash agendas as well. Under the Sunshine Law, the chair will receive oral testimony for agenda items at the beginning of the meeting, and as the item is called up for individuals wishing to testify via Teams, please raise your hand by clicking the raise your hand button. If calling in, please follow the prompts via phone star five to raise and to lower your hand star six to mute or unmute. Staff will add names to the testifier list and the order testifiers sign up or raise their hands.
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