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FOR IMMEDIATE RELEASE                                       June 22, 2005

Release M-42





Honolulu Mayor Mufi Hannemann today (Wednesday, June 22, 2005) signed into law the operating and capital improvement budgets for fiscal year 2006, which begins July 1.


Together they comprise Hannemann’s first budget and spell out how his administration plans to spend taxpayer dollars over the coming fiscal year. The operating budget provides $1.36 billion for day-to-day costs of City government. The capital budget provides $478 million for construction projects. Half of the capital budget is devoted to sewer projects.


The mayor said,  “Our budget reflects my continuing emphasis on five vital basics of City government: public safety, properly maintaining our roads and public facilities, upgrading our sewer system, improving traffic and transportation and disposing of our opala.   For each of the capital expenditures, we asked, ‘Do we need it? Can we afford it? Can we maintain it?’ ”


Drawing on his experience as a City Council member, Hannemann sought to restore accountability and integrity to the budget process.


 “Our budget is as much about style as it is about substance,” he said. “By that I mean for the first time in many years, the City administration worked very closely with the City Council on identifying and evaluating our policies and priorities, and then crafting a budget that would achieve our shared goals.


“The members of the Council deserve much praise for the spirit of cooperation they demonstrated throughout this process.  No, we did not agree on every issue, but what I found refreshing was that we were able to discuss our differences openly and honestly, and reach compromises that were in the best interests of the people we serve.  I expect this will be the foundation on which we will continue to build an effective working relationship, and which emphasize my themes of changing the culture at City Hall and collaborating with our co-leaders in government.”


 The mayor also signed:


·       Bill 11, CD2, appropriating $11,617,409 for the City Council operating budget for fiscal year 2006. Includes the offices of the City Clerk, the City Auditor and Council Services.

·       Bill 14, authorizing the sale of general obligation bonds and bond anticipation notes to finance the capital budget.

·       Bill 17, raising motor vehicle weight taxes by 1 cent per pound for passenger vehicles, light trucks and other noncommercial vehicles, from 2 cents to 3 cents per pound, and for commercial vehicles, from 2.5 to 3.5 cents per pound. Takes effect Jan. 1, 2006. Will generate an estimated $10.5 million.

·       Bill 18, CD1, raising rental fees for facilities at the Blaisdell Center and the Waikiki Shell.  

·       Bill 19,  CD2, FD1, raising sewer use fees by 25 percent next fiscal year (so the higher rates take effect on July 1) and 10 percent annually for the next five years. Consumers will receive flyers with their next water/sewer bills explaining the changes in detail. 

·       Bill 20, CD 2, raising wastewater system facility charges, the fees paid to connect to the City sewer system.

·       Bill 30, CD2, FD2, establishing a procedure and fees for commercial telecommunications facilities to be located on City property.

·       Bill 31, CD1, raising the fees for filming in City parks and recreation facilities to $300 per day for commercial studios, $20 for non-profits and still photographers.

·       Bill 32, CD2, which allows use of portions of the City’s five botanical gardens for weddings and disc golf. The director of Parks and Recreation must establish regulations and fees for such uses.







            Bill Brennan, 527-6928

            Mark Matsunaga, 527-5767









Public Safety

  • 33 new officer positions for the Honolulu Police Department.
  • $2 million for police equipment replacement, including 40 patrol cars.
  • $821,000 for the Police Training Academy indoor firing range.
  • $50,000 to plan the replacement of the Waianae Police Substation.
  • $1 million to purchase two fire engines and a service truck.
  • Matching funds of $374,000 to enable the Honolulu Fire Department to pursue more than $2 million in federal grants for equipment purchases.
  • Planning and design funds to relocate the Ewa Beach Fire Station to a one-acre site at Ocean Pointe.
  • $2.3 million for improvements to 12 fire stations around the island.
  • Master planning to modernize and redevelop HFD’s five-acre training center near Honolulu International Airport.
  • $761,000 to complete lifeguard tower replacement for the Ocean Safety Division.
  • $2 million for upgrades to the City’s public safety telecommunications systems.




  • Federally mandated alternative analysis and prepare draft environmental impact statement for the selection of a locally preferred rapid transit system (total cost is $10.2 million, of which $8 million is from federal government).
  • Launch $6.7-million intra-island ferry demonstration project connecting Leeward Oahu and Honolulu (federal money accounts for $5 million of the total).
  • Design and construction of second phase of Kaulawaha Road, between Mahaka Valley Road and Mahinaau Road, at a cost of $1.5 million (as the last phase of a seven-phase project that will provide an alternative access for Waianae Coast residents).
  • $201,000 to plan and design Joint Transportation Management Center to house the City Department of Transportation Services, State Department of Transportation, Honolulu Fire Department, Honolulu Police Department, Department of Emergency Services, and Oahu Civil Defense.




  • $1.7 million for asphalt for pothole repairs.
  • $30 million for road rehabilitation and reconstruction.
  • $5.3 million to continue making sidewalks and curbs accessible for the handicapped.



Sewers and Solid Waste

  • $250 million appropriated for sewage infrastructure improvements, including $30 million for the Ala Wai replacement force main, $20 million for the Saint Louis Heights sewage lining and replacement, various phases of sewer line construction in Kailua, Sand Island Waste Water Treatment Plant modifications and expansion, and other work.
  • $4 million to promote recycling.



Parks and Public Facilities

  • $4.5 million to replace 40-year-old air-conditioner for the Blaisdell Arena.
  • $550,000 for phase one of improvements to the Blaisdell Center garage and walkways.
  • $3.5 million to renovate existing parks and recreation facilities.
  • $1.3 million for drainage improvements to the long-awaited Kahaluu Regional Park.
  • $1 million for replacement of the Kailua District Park gym roof.




  • Reduce the number of unfunded positions in the Department of Planning and Permitting from 40 to 20, mostly for more building inspectors.
  • Four new permit clerk positions to provide counter support at the Honolulu and Kapolei permit centers and help reduce the permitting backlog.



Customer Services

  • Extension of Satellite City Hall hours at Ala Moana Center, Pearlridge Center, and Windward Mall.
  • $484,887 to establish a Windward Oahu driver license substation.
  • Renovations to the Pearlridge Satellite City Hall, including upgrades for point-of-sale transactions and relocation of driver license substation presently at the Pearl City Police Station.


City Operations

  • First phase of Enterprise Resource Planning System to replace and upgrade inefficient, 25-year-old City computer systems with a new one that integrates financial and personnel software.
  • Second phase of the Mayor's Review to improve City processes and practices, including government service delivery, development of performance scorecards, and implementation of best practices based on ongoing studies.
  • $100,000 for employee training, to begin to make up for the complete lack of training for City employees in recent years.




Community Services

·        $35 million to provide rent subsidies, home rehabilitation, and down payment loans; $9 million for affordable senior housing and elderly services; $4 million in support of programs that serve the homeless; and $4 million in support of programs that serve children and youth.



Economic Development

  • Market the Small Business Resource Center on the Web and in print to increase public awareness of the center’s services and support small business growth ($10,000).
  • Form partnerships with businesses and developers to stimulate business in Chinatown and to move toward the mayor’s goal of establishing Chinatown as an arts center ($15,000).
  • Form public-private partnerships with West Oahu businesses and organizations to encourage job growth, with an emphasis on high-skill positions ($10,000).




  • $100,000 for Haaheo No O Honolulu, the celebration of the centennial of the City and County of  Honolulu.
  • $40,000 for the Office of Culture and the Arts to commission performing arts groups to create new works and a grant for the Filipino Centennial Celebration.



Wednesday, June 22, 2005

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