Budget, Finance, and Economic Development Committee – April 8, 2026

The Budget, Finance, and Economic Development (BFED) Committee of the Maui County Council convened on April 8, 2026, at 9:02 a.m. to consider agenda item BFED-1: the proposed Fiscal Year 2027 budget for the County of Maui. The meeting focused on the Department of Water Supply and the Department of Management (including the Office of Recovery). Testimony was taken, and committee members deliberated on both department budgets. The meeting adjourned at 1:13 p.m., with plans to continue on April 9, 2026.

Public Comments & Testimony

• Lauren Aki Take (Executive Director, Maui County Board of Ethics) testified in support of the Board of Ethics FY27 budget, noting that two expansion positions approved earlier are already being filled. She requested a salary correction from $227,091 to the board-approved amount. She also thanked the council for allowing part-time hiring.
• Misty Amran (CEO, Maui Family YMCA) described the YMCA's community programs, stating that since 2023 the Y has provided over $600,000 in financial support for childcare, including free programming in Lahaina. She noted the Y gave over $200,000 in wellness scholarships last year.
• J. Lu Cabrera (Director, YMCA West Side Resource Center) detailed the center's services for West Maui residents after the Lahaina fires, emphasizing it operates at no cost to residents or partner non-profits. He requested continued support for Phase 2 (partnership park).
• Brandon LaRue (Youth Development Director, Maui Family YMCA) advocated for youth program funding, stating over 700 families rely on after-school programs. He described these investments as prevention and community strengthening.
• Jim Langford expressed full support for the YMCA and the Water Department, and suggested exploring atmospheric water generators and software improvements.
• Travis Liggett (via Teams) pressed for expedited wastewater disinfection (UV system) at Kahului, criticizing the Department of Environmental Management for delaying design to FY28. He claimed a locally developed solution is ready and urged the council to push for a budget amendment.
• J.C. Law (Huakōahōopua, Kūpono) asked about rent paid for the locked One Main Plaza building (Human Services) and praised Spirit Horse Ranch.
• Christopher Salem (via Teams) questioned the scope of a consultant report on nepotism allegations, the lack of explicit legal settlement line items in the budget, and the county's handling of whistleblower retaliation. He stated he brought evidence of wrongdoing that led to ordinance repeals but now faces retaliation.

Discussion Items

Department of Water Supply

• Opening Remarks (Director Stufflebean): Presented a "status quo" budget balanced from water rates. Vacancy rate is ~7%. Ten new positions are contingent on acquiring a private water system. Energy costs consume ~20% of the budget. CIP increases significantly due to expected federal funding. Rate increases proposed only for high-end users; average user sees essentially no increase. The county-mandated watershed grants remain at 4% of operating budget. Top priority: developing new water sources for affordable housing.
• Questions from Members:
  • Member Senency asked about generator capacity for East Maui. Director confirmed some portable generators exist and 30‑32 additional units are planned with federal funding.
  • Member U'U Hodgins inquired about the new water meter fee calculation (equivalent dwelling units) and permit processing. Staff said implementation has started and is faster.
  • Member Cook asked about the hydraulic study, the Haikū-to-Upcountry transmission line (clarified it allows water flow both ways), and the South Maui desalination plant (both seawater and brackish options being studied).
  • Member Johnson requested using Water Department reserves ($1.8 million) for airborne electromagnetic mapping of aquifers to unblock affordable housing projects. Director said discussions are ongoing; budget director noted state buy-in is desired. Johnson stated communities cannot wait and he will seek funding elsewhere.
  • Member Paulton asked about rate impacts on large users, the GET/DHHL split, and the ML&P system acquisition. Director confirmed revenue bonds are an option; eminent domain would unwind existing contracts. Damage to the Wailuku Ditch reduced water supply to the ʻĪao treatment plant by ~10%.
  • Chair Lee questioned CIP priorities. Total CIP is $176 million; top priority is new water sources. Vacancies: 16 out of 235 positions.
  • Member Batangan asked about energy savings from Johnson Controls solar projects and about high water bills due to estimated readings. Director explained the billing correction process and ongoing transponder repairs.
  • Chair Sugimura (speaking) asked about stormwater revenue loss; Director noted reduced sales also reduce delivery costs, balancing out.
  • Member Cook inquired about gulch crossing repairs, stormwater capture studies, and AI tools. Director confirmed a CIP project addresses gulch crossings and a stormwater feasibility study is beginning.
  • Chair Sugimura asked for timeline to approve 100 upcountry water meters; goal is within FY27, not limited to 100.
  • Member Batangan asked about conflicting audit statements on procurement oversight; Director said contracts are reviewed and approved by Finance.

Department of Management (including Office of Recovery)

• Opening Remarks (Managing Director Nishita): Noted a $4.5 million budget expansion, seven EPs (six unfunded), including a chief security officer. IT salaries increased $968,000; operations up $3.8 million due to contract renewals and new software. OOR budget reduced by $3.5 million due to CDBG-DR distributions; $21 million set aside for temporary housing if federal funding ends. CIP projects include countywide facility renovations and West Maui land development.
• Questions from Members:
  • Member Paulton asked about the personnel system RFP. Managing Director said Guide House Inc. was selected; contracting is in progress. She also asked about enforcement of administrative rules across departments. Managing Director acknowledged some departments are falling behind and consultants may be used.
  • Member Johnson pushed for administrative rules for Bill 11 (housing) and questioned the classification and compensation study. Managing Director said a direct benefit for lowest-paid employees was prioritized over a study. On the proposed metal detector (screening machine), Johnson opposed, recalling similar past opposition. Managing Director said it was placed for discussion and council direction will be followed.
  • Member Rollins Fernandez opposed the screening machine and asked about a cesspool survey (Brown and Caldwell) – it is under Management because multiple departments are involved. She supported the condition on DHHL GET funds but noted DHHL has had a year to finalize the intergovernmental agreement; she wants to maintain pressure.
  • Member Cook questioned dark fiber (fiber-optic wiring) and vacant positions. Managing Director acknowledged process inefficiencies but noted the review and revamp of HR processes is underway. Cook expressed concern about budgeting for unfilled positions.
  • Member U'U Hodgins asked about salary increases for non-union management when first responders (HFFA) lack step increases. Managing Director explained all increases follow collective bargaining; the county has provided hazard pay, free medical benefits, and pension contributions.
  • Member Senency asked if Management administers competitive grants; answer: no, only line-item grants except CDBG-DR solicitations.
  • Member Batangan questioned grants and contracts named in the budget narrative but not in the ordinance. Answer: departments can use competitive processes, renewals, or cooperative purchasing. She also asked why a police station sign project is under Management – Managing Director said it was to fulfill a council renaming decision.
  • Chair Sugimura asked about the Economic Recovery Commission (ERC) contract. Office of Recovery (John Smith) stated the mechanism is shifting from a grant to a contract due to legal requirements, but the work will continue. Chair also asked about hiring incentives (e.g., $5,000 signing bonuses). Managing Director confirmed departments can offer such incentives with retention requirements.
  • Member Cook asked about the Office of Recovery’s permanent and temporary positions. John Smith described 11 permanent positions and up to 56 CDBG-DR positions (27 filled). He noted that the Office of Recovery is permanent and helps navigate federal reimbursement.
  • Member Batangan asked about legislative tracking – Managing Director said it was moved to Management for consistency after council approved a position. She also asked about executive order EL 2025-02 justifying pay increases; budget director confirmed it reflects collective bargaining.
  • Member Paulton asked about transferring SMA funds for employee housing obligations – follow-up needed. She also urged assistance for Lahaina residential owner-occupants; Managing Director said the Hawaii Community Lending $7.5 million appropriation is proceeding, and discussions continue on a $6 million gap.
  • Member Johnson asked about rebuilding Lahaina Courthouse and Prison – Office of Recovery said Lahaina Restoration Foundation has FEMA and insurance but a funding gap exists; they may request flexibility.
  • Member Rollins Fernandez asked if the Office of Recovery can handle other disasters beyond fire. John Smith confirmed they are building capacity; the recent Kona Low events highlight the need. An additional budget amendment for response is coming.
  • Member U'U Hodgins asked about Office of Recovery’s role in stormwater resilience and sinkhole repairs. Smith said they help navigate FEMA reimbursement and longer-term mitigation planning, including watershed restoration.
  • Chair Sugimura expressed concern about over $600 million in subsidized housing programs and questioned whether STR expectations have been met. Managing Director explained that most fire victims were underinsured; multifamily projects require heavy subsidies due to cost escalation.
  • Chair Sugimura also asked about ʻIao Theater repairs ($3.8 million). Aaron Wade summarized structural issues – roof replacement before 100th anniversary (2028). The theater will be temporarily displaced; partnerships with other arts venues are planned.
  • Member Paulton asked about the intersection of MEMA and OOR. Smith said OOR integrates with MEMA’s plans, stepping in during long-term recovery. After the Kona Low, assessments and debris removal shifted to OOR.
  • Member Paulton also asked about a conservation easement for managed retreat – Managing Director said Hana Community Land Trust inquired, and a legal determination is pending on whether it is allowable.
  • Member Johnson asked about funding for reforestation and watershed work – Office of Recovery is open to discussions but may prefer completing the urban forest management plan first.
  • Member Batangan questioned whether several grants in the budget (Council for Native Hawaiian Advancement, J. Walter Cameron Center, etc.) are appropriately placed under Management. John Smith said they are continuations of OOR work and offered to provide written descriptions.
  • Chair Lee criticized what she called "padding the budget" and noted council often increases the budget above the mayor's request. Managing Director responded that council has added funds each year, and carryover savings help smooth tax increases and respond to emergencies. Chair Lee questioned why tax rates are raised when assessments decline. Managing Director replied that rate increases can offset assessment drops to avoid revenue loss.

Key Outcomes

• Public testimony was closed; written testimony will be accepted.
• The committee deferred final action on BFED-1. Deliberations will continue.
• The committee acknowledged that the Department of Water Supply’s budget is balanced through rates; no votes were taken.
• The committee directed the Department of Management to provide further written responses (e.g., on conservation easements, grant descriptions, ML&P acquisition details).
• A follow-up meeting is scheduled for April 9, 2026, at 10:00 a.m. to hear from the Office of the Mayor and Department of Agriculture. This schedule may be adjusted due to the emergency activation of the Emergency Operations Center (EOC) for the incoming Kona Low storm. The committee resolved to continue next week as planned unless further changes are announced.
• The committee noted the need to address carryover savings, unfilled positions, and administrative rule updates.