Mayor Maryanne Kusaka’s final county operating budget, an $89.3-million document that includes funds to move later this year into a new police station, contains a proposed slight decrease in real property tax rates. The 15-cent, across-the-board reduction in rates proposed
Mayor Maryanne Kusaka’s final county operating budget, an $89.3-million document that includes funds to move later this year into a new police station, contains a proposed slight decrease in real property tax rates.
The 15-cent, across-the-board reduction in rates proposed will save a resident with a home valued at $220,000 just $33, but that is opposed to other counties suggesting real property tax rate increases.
The projected overall reduction in real property tax revenues, the single largest source of income for the county, is around $1 million, Kusaka said in her budget message delivered to the County Council Friday afternoon.
Real property assessments on Kaua’i have increased over the current fiscal year, and valuations are expected to increase by 11.9 percent for the upcoming fiscal year, Kusaka stated.
Conservation, agriculture and homestead classes saw the largest percentage increases in value, with the conservation class rises largely due to residential development of ocean-front property.
The increases in market value in the agriculture category were due to increased home-site valuations and owners opting out of the agricultural use and home dedication programs.
Homestead class value increases were primarily the result of new construction. Properties in the commercial, industrial and hotel and resort categories experienced little or no change in value.
As a result, projected real property revenues for the upcoming fiscal year will increase by $3.1 million over the current year, an 8 percent change. This reflects positive factors impacting the island’s real estate market and economy, Kusaka continued.
The message and operating budget document has an attached $15.5 million capital improvement program (CIP) budget as well.
The county budget covers the period from July 1, 2002 to June 30, 2003. The final budget must be approved by the County Council.
The county’s share of the transient accommodations tax (TAT, or hotel-room tax) is expected to grow by $1.5 million to $11.6 million in the upcoming fiscal year.
The start of the new fiscal year will mark a substantial increase in fixed costs for the county, as collective bargaining raises kick in on July 1, Kusaka commented.
The additional price tag is approximately $3 million, raising the total expenditure for salaries and wages to $39.6 million, or around 44 percent of the total county budget.
As a result of September 11th, the county’s insurance premiums have leaped, and are expected to rise even further. Kusaka is estimating an additional cost of $750,000 in fiscal 2003 for insurance, an increase of 50 percent over current premiums, to $1.2 million.
Combined salaries and wages, health fund contributions ($7.2 million), utilities costs ($21 million) and debt service ($7.1 million) make up 84 percent of expenditures in Kusaka’s final budget proposal.
While deservedly proud of the imminent moving into the new police station and related offices, the bankruptcy declaration of Amfac may put a snag in the projected occupancy date.
When Amfac declared bankruptcy last month, its contractor was poised to begin construction of Ka’ana Street, the main feeder road not only for this facility but also the adjacent, planned state judiciary complex, Kusaka said.
The utility lines for the county’s new building were to be laid during the roadway construction. “Delays could impact our projected opening date in October of this year,” she said.
The rise in county utilities costs are projected primarily due to use of the new building, and new county offices during the planned conversion of the old Gem store in the Lihue Civic Center.
The Kauai Police Department building will also house the Civil Defense Emergency Operating Center and Office of the Prosecuting Attorney.
“We project that estimated increase in utility costs (electricity, water, sewer, phone) to approximate $1 million,” Kusaka continued.
“While we all excitedly await the opening of our new facility, scheduled for October of this year, there will be a substantial cost associated with moving in,” Kusaka said. “Much of what is unique in this budget submittal pertains to relocation and first-year operational costs.”
Included in Kusaka’s proposed budget are also the following items:
– $50,000 for a Kaua’i energy policy;
– $30,000 for special counsel to represent the county’s point of view in the upcoming deliberations of the state Public Utilities Commission regarding the proposed sale of Kauai Electric;
– A grant-writer position in the Kaua’i Police Department;
– Creation of an Office of Information Systems with a department-head-level director to run it;
– $230,000 for equipment and furniture for the new emergency operating center.
Kusaka vacates the mayor’s office December 1, and she hopes to complete over the next nine months an ambitious agenda.
“It is my goal to welcome a new administration with a brand new police facility that is up and running, a new landfill site selected and purchased, a waste diversion RFQP (request for qualified proposals) in the works, ADA (federal Americans with Disabilities Act) improvements on track with our transition plan, a plan of action relative to Kauai Electric, and completion of public works projects such as Rice Street, Kealia and Kekaha beach parks, and electrical and technical upgrades to Kauai War Memorial Convention Hall, making it a more salable facility,” she concluded.
