LIHU‘E — Members of the Kaua‘i County Council Committee of the Whole yesterday approved a $102.5-million county operating budget for the next fiscal year that will provide $3.7 million in tax relief to property owners. The $3.7 million is how
LIHU‘E — Members of the Kaua‘i County Council Committee of the Whole yesterday approved a $102.5-million county operating budget for the next fiscal year that will provide $3.7 million in tax relief to property owners.
The $3.7 million is how much less money county officials expect to receive in real-property revenues for fiscal year 2004-2005.
The reduction is tied to many homeowners taking advantage of two real property tax relief measures and a lower rate for land valuation for eight tax categories, including homeowners.
Whether the loss in revenues could affect county services is not known, but the remaining real-property tax revenues will enable the Kaua‘i County Council to approve a “balanced” budget by June 30 each fiscal year, as required by the Kaua‘i County Charter.
Members of the council’s Committee of the Whole, which met yesterday at the historic County Building, and Mayor Bryan J. Baptiste, voiced support for the measures that will give tax relief to homeowners.
The full council is anticipated to vote on the proposed $102.5-million operating budget and $16.6-million capital improvement budget for the next fiscal year on Monday, May 24.
On the same day, the council is expected to officially adopt property tax rates through a resolution.
For the past five years, property owners have seen their assessments spiral, the result of repeat, high-priced sales of neighboring properties to new buyers (please see the related story on the front page).
The buying has triggered higher tax bills that have threatened to force some long-time residents off their land.
Documents released during the council committee meeting yesterday showed the county is projected to receive an estimated $53 million in real property-tax revenues in fiscal year 2004-2005, up from just under $50 million in the current fiscal year.
The $53 million is some $3.3 million less than the $56.3 million Baptiste projected in his March 15 submittal to the council.
Baptiste revised that amount to about $53.9 million in his supplemental budget message sent to the council earlier this month, following certification of the county tax revenues.
The loss of $3.3 million of property tax is tied to homeowners qualifying for two county tax-relief programs, and an anticipated additional decrease in the tax rate for land.
In his March 15 budget sent to the council, Baptiste had proposed a tax-rate reduction of 20 cents for every $1,000 of assessed evaluation for the land and building portions of all eight county tax categories.
Members of the council committee agreed with the mayor’s proposal on both counts.
In addition, though, committee members proposed an additional 15-cent reduction for every $1,000 of assessed evaluation for the land portion for the eight tax categories, thus providing an additional $700,000 tax relief to property owners.
In essence, the proposal provides a 35-cent reduction per $1,000 of assessed valuation of the land.
Council members are proposing that people who live in their homes — those in the homestead class — pay $3.44 for every $1,000 of valuation for the building, and $4 for every $1,000 of valuation of the land.
Owners of apartments, commercial structures, industrial buildings and hotels and resorts would be paying the highest rates for the tax categories, at $7.95 for every $1,000 of valuation for the building and $8.20 for every $1,000 of valuation for the land.
The council’s proposed $102.5-million operating budget and $16.6-million capital improvement budget proposed for next year compares with a $103.2-million operating budget and a $16.6-million capital improvement budget Baptiste sent to the council on March 15.
This month, Baptiste submitted a $103.4-million supplemental county budget, and a $16.6-million capital improvement budget to the council for review and adoption.
The new numbers were based partly on certification of county tax revenues, and clarification of revenues available to the county.
In fashioning the proposed budgets for next year, council members took into account some of the funding changes proposed in Baptiste’s supplemental budget.
However, the legislators can only act on the March 15 version from Baptiste, which is part of an ordinance, county officials said.
An estimated $800,000 gap exists between Baptiste’s March 15 budget and the $102.5-million county budget the council committee approved Tuesday.
Some of the major differences include:
- About a $200,000 increase in the county’s golf fund and the solid waste fund, prompting some audience members yesterday to question the use of county general funds to cover increases recommended by the council committee.
James Tokioka, the vice chair of the council and the vice chair of the council’s Committee of the Whole, said county funds are used to maintain and improve recreational facilities that the public is not charged a fee for using.
In the corollary, county funds should continue to be used to maintain and upgrade the golf course, a public facility, Tokioka said.
Councilwoman JoAnn Yukimura said at one time the golf operations generated a surplus fund, although that is not the case at this time.
Not using county general funds for golf-course improvements would mean that golfers would eventually have to pay higher fees, county officials said.
Kaua‘i resident Richard Stauber offered what he considered to be a better option: “Raise more money in the budget or get rid of the golf course,” he said.
- Nearly $270,000 the council committee set aside for a fund to acquire public access for the benefit of residents.
- $100,000 councilman Mel Rapozo had proposed for a performance audit, action which drew praise from Yukimura.
During numerous council meetings in the past year, Wailua Homesteads resident Glenn Mickens voiced the need for such a study to determine the quality of work done by county departments, particularly by the Department of Public Works.
- A $200,000 difference between the mayor’s and the council committee’s capital improvement budget for the next fiscal year.
Baptiste asked for $12,276 for a project contingency fund, while the council committee proposed $177,511 for the fund. The council asked for $25,000 for a parking lot at the Kalaheo Neighborhood Center and $10,000 for resurfacing of a skateboard rink at the Kapa‘a New Park.
Baptiste sought funding for both projects in his supplemental budget sent to the council this month.
Staff Writer Lester Chang may be reached at 245-3681 (ext. 225) or lchang@pulitzer.net.
