New budget is $6.67M higher

LIHU‘E — Mayor Bernard Carvalho Jr. on Tuesday submitted his supplemental budget for Fiscal Year 2013. Carvalho’s revised proposal reflects an increase of $4.11 million in operational expenses and $2.56 million in capital improvement projects compared to his March 15 budget submittal.

The new budget submittal proposes operational costs of $165.33 million, and $64.35 million in CIPs.

“After careful consideration and taking into account recent discussions with (the Kaua‘i County) Council, we are proposing tax rate adjustments to the single-family residential land rate, and both the land and building rates for hotel and resort classification,” Carvalho said in Tuesday’s budget submittal.

The increase in tax rates is an effort to “stem the trend in lower revenue over the past three fiscal years,” a trend expected to continue, according to Carvalho.

Under Carvalho’s proposal, the single-family residential land building rates would remain at $4.25 per $1,000 of value on buildings. But the land rates, currently at $3.95 per $1,000 of land value, would jump to $4.85 per $1,000.

Carvalho said the proposed increase in single-family residential land rates is “far below” the land rate of $5.14 that existed prior to a reduction in FY 2006.

The increase in hotel and resort rates would bring those taxes to $7.14 per $1,000 of land value and $8.20 per $1,000 of building value. This tax rate currently is $6.90 per $1,000 of land value and $7.90 per $1,000 of building value.

Some of the increases in the CIP budget account for an environmental assessment and preliminary design for a Materials Recovery Facility, and lighting and Americans with Disabilities Act retrofits at parks and stadiums.

Besides the tax rate increase, the new budget includes a proposal for a Human Resources Department, complete with five distinct divisions.

Each year on March 15, the mayor is supposed to send his budget proposal to the Kaua‘i County Council for the next fiscal year — which starts on July 1 and ends on June 30.

After the council scrutinizes the budget over a period of a few weeks, the mayor can submit a supplemental budget on May 8.

The council will now take a look at Carvalho’s second proposal before making final decisions.

Today, Council Vice Chair will be proposing an amendment to the Kaua‘i County Charter eliminating a provision that allows the mayor to submit a revised budget each year.

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