LIHU‘E — Mayor Bryan J. Baptiste yesterday sent to members of the Kaua‘i County Council a proposed county operating budget of $124.9 million for the next fiscal year, up nearly 25 percent from a $102.5-million budget for this year. The
LIHU‘E — Mayor Bryan J. Baptiste yesterday sent to members of the Kaua‘i County Council a proposed county operating budget of $124.9 million for the next fiscal year, up nearly 25 percent from a $102.5-million budget for this year.
The larger budget stems from a significant increase in projected real-property-tax revenues that have been generated by a 48-percent increase in real-property assessments of Kaua‘i properties this year, Baptiste said. The increase is tied to the ongoing boom in house sale prices.
The higher assessments are projected to generate an additional $17 million in tax revenues for the next fiscal year, Baptiste told reporters during a meeting in his office at the Lihu‘e Civic Center Tuesday.
He also sent a proposed $15.7-million capital improvement budget to the council, up from $16.8 capital improvement budget for the current year.
Attending the meeting were Gary Heu, Baptiste’s administrative assistant, county Department of Finance Director Mike Tresler, and Deputy Finance Director John Isobe.
Related to the budget proposal, Baptiste said he will recommend the council and his administration not use $10.5 million in projected tax revenues for the time being. Some or all of the $10.5 million, to be listed as a budget line item, could be returned to residents in the form of more tax-relief programs, Baptiste said.
Baptiste said if he had his way, he would like to see some of the funds used to fix up infrastructure that has been neglected for many years, including the island’s sewer system and the county’s neighborhood centers. Funds also could be used to repave county roads, he added.
“We need to give these projects this type of relief, and to handle things that have been deferred by government and need to have attention today,” Baptiste said.
Maintenance of the infrastructure was neglected partly because government leaders, for many years, had focused their energies on the recovery of the island from the damage of Hurricane ‘Iniki in 1992, Baptiste said.
Politicians also appropriated funds for new projects rather than spending money fixing aging infrastructure, Baptiste added.
Baptiste said he hopes to begin working soon with council members to decide how the $10.5 million in projected tax revenues will be used.
Baptiste said he will not recommend any tax-rate increases, but will be asking the council to approve a bill that would reduce a tax bill cap of 6 percent to 2 percent cap on property-tax bills for the next fiscal year for home owners who occupy their homes.
If the council approves Baptiste’s request, taxpayers could save $450,000 next year, and more if the bill becomes law and the council extends the legislation, Baptiste said.
Combined, the 6-percent cap and the 2-percent cap, if approved, would save qualified taxpayers $7.3 million this year, according to Tresler and Isobe.
Related to the overall budget, Baptiste said his proposed “de facto budget” for the next fiscal year actually hovers between $104 million to $107 million, if one were to consider that the use of the $10.5 million is up in the air at this time.
Baptiste said the budget has increased from the current budget because $5.1 million has been set aside to cover the increased cost for retirement and health benefits, and for collective bargaining matters. “These are fixed costs that I have no control over,” Baptiste said.
“Even if the budget were status quo, with no new services added, you would see a budget increase of $6 million, for salary, for collective bargaining,” Isobe said.
-stands the public’s demand for tax relief and controlling government costs, and that he has made both top priorities of his administration.
But he said he added $1.2 million to next year’s budget to improve public services.
Baptiste said this means hiring two more lifeguards to fully man all lifeguard stations; hiring a lobbyist, on a contract basis, to work in Washington D.C. to secure more federal funding for Kaua‘i County; hiring drivers for an after-school program, including those to help thwart drug use; adding another $142,000 for the county’s summer-enrichment program; hiring two park caretakers to help maintain major county parks; and hiring three police officers and police dispatchers.
With the mayor’s budget in hand, council members will begin holding budget hearings soon with county department heads.
Public hearings on the budgets will follow.
The mayor may submit a supplemental budget after property revenues are certified by the county in April.
During the meeting with reporters, Baptiste also stressed that assessments cards that the county has sent out are not real-property-tax bills.
Baptiste said he wanted to remind residents that the cards, mailed yesterday, reflect only a fair-market valuation of properties, and that the cards are not bills.
Lester Chang, staff writer, may be reached at 245-3681 (ext. 225) or lchang@pulitzer.net.
