Mayor Maryanne Kusaka has sent a supplemental operating budget to the Kaua’i County Council that is about $800,000 more than the $89.3 million proposed budget she submitted to the lawmakers in March.
The larger budget – $90,093,243 – was primarily driven up by an increase in property tax revenues due to a smaller number of expected appeals and higher property insurance after the Sept. 11 terrorist attacks.
The increases also are tied to green waste disposal projects and the operation of the Wailua, Lihu’e, an ‘Ele’ele wastewater treatment plants.
The Council will analyze the mayor’s budget and fashion its own budget before the start of the next fiscal year in July.
Likely to bring smiles to property owners, Kusaka’s budget in March proposed a 15-cent, across-the-board tax rate reduction.
If the rate reduction plan is approved, a homeowner of a $220,00 home would save only $33, but the reduction is being recommended even as other counties are considering raising tax rates, Kusaka said.
On Thursday, a Council resolution introduced by Council Chairman Ron Kouchi proposed similar rate reductions.
The rate for the homestead category (an owner occupied property) is currently set at $3.79 per thousand dollars of evaluation. The land is set at $4.65.
The requested rate reduction for the same category proposes $3.64 and $4.50.
The taxable categories include single family residential, apartments, commercial and industrial buildings, agricultural projects, lands in conservation use and hotels and resorts.
Should the Council approved the new rates, Kaua’i County’s projected overall reduction in real property tax revenues would be about $1 million.
The lost revenues, however, are overshadowed by real property assessments on Kaua’i that have increased over the current fiscal year, Kusaka noted in her first budget.
Her adjusted budget noted some of the bigger changes from the first budget:
– The county’s certified tax roll for the next fiscal year is anticipated to total nearly $42 million, representing an increase of about $677,000 over the March budget estimate, Kusaka said.
The difference is largely the result of less than expected appeals in numerous property rate categories, she said.
– The County Public Works Department wants $130,000 for the privatization of a county greenwaste disposal program and another $100,000 for a grant for a North Shore community greenwaste project.
– Property insurance premiums will jump.
The estimate for the county property insurance was short by $150,000 in the March budget, Kusaka said.
For fiscal year 2002, the county premiums increased to $839,393, a 99 percent increase over the previous fiscal year.
The jump is attributable to the insurance marketplace after the Sept.11 terrorist attacks and the perceived risk of hurricanes, Kusaka said.
For fiscal year 2003, the county is expected to pay $$850,000 in premiums.
– An additional $157,000 to upgrade a system that operates the Wailua, Lihu’e and ‘Ele’ele wastewater treatment plants.
– A grant request of $10,000 for the non-profit Hawaii Lifeguard Association to create a water safety Web site for Kaua’i County.
The Web site will feature safety information about island beaches and carry current ocean conditions.
Related to Kusaka’s proposed capital improvement budget of $8.5 million for the next fiscal year, Kusaka is asking for another $10,000 for a traffic study for Maka Road and other roads near the Kalaheo School.
Staff Writer Lester Chang can be reached at mailto:lchang@pulitzer.net or 245-3681 (ext. 225).
