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FOR IMMEDIATE RELEASE                                      June 23, 2006

Release M-71-06






            Mayor Mufi Hannemann today signed into law the City’s operating and capital improvement budgets for the 2007 fiscal year, which begins on July 1.


            Approved were:


            Bill 28 (2006), C.D. 2, the City’s $1.5-billion operating budget, and


            Bill 29 (2006), C.D. 2, the capital budget of $680.7 million.


            In approving the measures, Hannemann said, “In my state-of-the-City address in late February, I described our budget as ‘no-frills,’ a budget that reflected the consistency of our spending priorities.  Our focus has been, and continues to be, on the basic services that place a premium on public safety; maintenance of roads, parks and public facilities; transportation and traffic; and sewage and solid waste.


            “It’s noteworthy that spending on sewers and sanitation will account for more than half—$356.6 million, or 52 percent—of our total capital spending this coming year, a clear indication of the condition of our aging infrastructure.  We’ll also be spending $44 million on road repairs.


            “The other priority is traffic relief, where we’ve budgeted $50 million as the next step in our efforts to build a modern mass transit network based on a light rail system.  So many people have devoted so much time to this effort to bring us this far, and this appropriation will show decision-makers on Capitol Hill, and potential private sector investors, that Honolulu is closer than ever to realizing its dreams.”


            Hannemann credited the City Council for its support of the spending package.  Said the mayor, “The members of the Council had to make some tough decisions on the budget.  Given our current spending priorities, they had to decline many requests from their constituents for nice-to-have projects.  That took courage and fortitude.  But their support for this budget will mean a better quality of life for this generation and those to come, and that kind of long-term outlook is commendable.”


            Mayor Hannemann also signed into law the following measures on June 23:


            Bill 27 (2006), C.D. 2, the $13.75-million legislative budget.


            Bill 81 (2005), C.D. 2, relating to real property tax valuations, provides a one-time real property tax discount of $200 against the taxes owed for an owner’s home for the 2006-2007 tax year, provided the property was granted a home exemption for that tax year.


            Bill 30 (2006), relating to authorizing the issuance and sale of general obligation bonds and bond anticipation notes, authorizes the City to issue and sell bonds and notes in the maximum principal amount equal to the aggregate amounts appropriated in the Fiscal Year 2007 capital improvement program budget.


            Bill 31 (2006), C.D. 2, relating to revenue-enhancing opportunities for the Department of Enterprise Services, will enhance the City’s revenue-generating opportunities at the Blaisdell Center and Waikiki Shell through provisions for co-promotion of events, adjustments in arena percentage rent caps, and displacement of non-profit organizations to the Waikiki Shell to permit the use of the Concert Hall for events that will offer greater financial benefit, be of significant public appeal, and offer an attraction to the community that would not otherwise be available.


            Bill 32 (2006), C.D. 1, relating to admission fees for the Honolulu Zoo, increases the Honolulu Zoo’s admission rate for non-residents 13 years of age and older from $6 to $8 per person.


            Bill 33 (2006), C.D. 1, relating to the transit fund, prevents transit project money from being commingled with the City’s General Fund, provides tighter budgetary control and accountability of the revenue collected for transit purposes, and facilitates drafting of the Comprehensive Annual Financial Reports.


            Mayor Hannemann said, “This measure will guarantee that all revenues we collect for our transportation improvements will be devoted exclusively to those projects.  Past raids on the sewer fund to pay for high-maintenance, nice-to-have construction projects have shown us the unfortunate consequences of a lack of oversight and accountability of City finances.”


            The mayor approved the following budget-related measure on June 20, 2006:


            Bill 34 (2006), C.D. 2, relating to the Special Reserve Fund, changes the name of the fund to the Reserve for Fiscal Stability Fund, amends its purpose, and changes the provisions under which deposits and expenditures are made.


            Mayor Hannemann said, “I continue to maintain that the City needs to set aside a reserve, a savings account, if you will, for that rainy day.  A natural disaster, a severe economic downturn such as we experienced in the wake of the first Gulf War or September 11, or any number of unforeseen crises would place a severe burden on the public sector, and particularly on a City government that oversees our first-responders, maintains the public infrastructure, and is on the front-lines in any emergency.  A fund also has the benefit of lowering our cost of borrowing money because it shows investors that we’re financially sound and prudent.


            “I’m very grateful that the members of the City Council recognize the importance of this savings account and have taken the steps to make it a regular part of our budget.”





Joyce Oliveira, Mayor’s Office, 523-4714

Gregg Hirata, Mayor’s Office, 523-4051

Fiscal Year 2007

Budget Highlights



Beachwalk pump station force main                                                    $18 million

Sand Island treatment plant expansion                                     $64 million

Sand Island treatment plant disinfection facility and

   effluent pump station                                                                        $15 million

Fort DeRussy pump station and force main                                         $2.2 million

Honouliuli treatment plant solids handling                                          $22 million

Honouliuli treatment plant upgrades                                                    $10 million

Kalihi Valley sewers                                                                          $23 million

Kalihi-Nuuanu sewers                                                                         $21 million

Wilhelmina Rise sewers                                                                     $20 million

Waimalu sewers                                                                                  $9.5 million

Houghtailing Street sewers                                                                 $7.5 million



Islandwide street rehabilitation

   ($10 million for storm damage repairs)                                           $44 million

North-South Road construction                                                           $33.1 million

Kuahea Street (Palolo Valley)                                                $5 million

Manana cane haul road construction                                                   $4 million

Waianae Coast alternate access route                                                 $1 million

Waimalu Stream dredging                                                                   $3 million

Flood control for streams and ditches, islandwide                             $1.25 million

Bridge rehabilitation and improvements, islandwide                          $2.5 million


Public Safety

15 uniformed police officers                                                               $0.77 million

10 permanent and 10 contract water safety officers (lifeguards)         $0.6 million

Crime laboratory expansion                                                                $9.95 million

Police station and facility improvements                                            $1.65 million

Police patrol sedans and other equipment                                           $2.9 million

Mobile data computers in patrol vehicles                                           $1 million

Fire station building improvements                                                     $2 million

McCully fire station replacement                                                        $1 million

Two fire engines                                                                                 $1 million

Wahiawa ambulance facility construction                                           $1 million

New lifeguard towers                                                                         $0.4 million

Telecommunications facilities upgrades                                             $2.9 million






Public Facilities and Parks

Blaisdell Center Arena risers                                                             $2.32 million

Blaisdell Center Arena air-conditioner

  (addition to $4 million from FY2006)                                              $1.5 million

Honolulu Municipal Building fire sprinklers                                      $5 million

Kapolei corporation yard (includes FY2006 funding)                        $9 million

Ala Moana Park improvements                                                           $1.8 million

Halona Blowhole reconstruction                                                         $1.15 million

Fire alarms for park buildings                                                             $1.7 million

Sunset Beach Recreation Center construction                         $3.1 million

Waipio Recreation Complex restroom construction                            $1.55 million

Waipahu District Park reconstruction                                                 $1.6 million

Honolulu Zoo improvements                                                               $1.5 million

Kalihi-Palama Satellite City Hall relocation                                      $0.44 million

Pearlridge Satellite City Hall renovation                                            $0.5 million


Traffic and Transportation

Honolulu High-Capacity Transit Project                                             $50.2 million

Computerized traffic control system                                                    $2.3 million

Traffic signals at various locations                                                     $2.3 million

Buses and handi-van acquisition                                                         $13.5 million

Middle Street transit center construction                                             $2.5 million

Intra-island ferry (includes $3 million in federal funds)                     $3.3 million

Fuel for public transportation buses                                                    $25 million



Kulana Nani apartment renovations                                                    $1.4 million

Rental assistance (federal and City funds)                                          $32.1 million

Waianae affordable housing

   (to Hawaii Housing Development Corporation)                              $0.66 million

Habitat for Humanity Leeward Oahu for low-income housing            $0.9 million

Hui Kauhale, Inc., for affordable housing at Ewa Villages                 $2.1 million

Korean American Foundation senior care facilities                            $1.95 million

Gregory House and Life Foundation HIV/AIDS services                   $0.42 million

Six contract driver license examiners during

   summer and holiday                                                                         $77,000

Four real property appraisers at Kapolei Hale                                   $137,000

Friday, June 23, 2006

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