By NANCY COOK LAUER
Stephens Media
Hawaii County property values decreased by 3.6 percent over the past fiscal year, a figure so close to Mayor Billy Kenoi’s earlier estimate that he said Tuesday there will be little, if any, changes when he submits his final budget later this week.
Kenoi submitted his $365.3 million preliminary operating budget March 1, and he’s required by the county charter to submit his final proposed spending plan by May 5. The final budget takes into account the certified property values, the amount of the tax base after final assessments are done and appeals are resolved.
The election-year, status quo budget doesn’t raise property taxes or cut services, but relies on deferring $20 million in payments on future retiree benefits, called GASB 45 payments. It continues monthly employee furloughs and eliminates the West Hawaii golf subsidy.
“It came in right about where we estimated it would be,” Kenoi said. “Our budget is set.”
The County Council is now considering the budget, and is expected to make amendments to it later this month. The mayor has the power to veto the spending plan, but he can be overruled by a two-thirds majority of the council.
Hawaii County’s property tax revenues for the 2012-13 fiscal year are estimated at $198.5 million, a 4.3 percent drop over this year’s $207.3 million.
The value of property and buildings now stands at $23.5 billion, a drop of $878.5 million from last year, according to the certified property values released Tuesday by the county Finance Department. The property assessments include an estimated $161.2 million in new residential construction and $43.5 million in commercial construction.
Council Chairman Dominic Yagong, who has been critical of deferring the GASB 45 payments, said Tuesday he thought the first estimate of property values showed a steeper decline. If that’s true, and if more money is available than previously thought, Yagong wants to chip away at the approximately $40 million in GASB 45 payments that will have been deferred this year and next.
“Whatever moneys we can find, obviously I want it to go toward GASB,” Yagong said. “Obviously, we can’t come up with $40 million, but whatever we can get, I think it’s far more prudent to pay on it.”
Kenoi defends his decision to postpone payments. Hawaii County has already deposited $61.6 million into its account over four years, according to Deputy Finance Director Deanna Sako. She said only Hawaii County and Kauai show GASB 45 payments have been made on their comprehensive annual financial reports. The City and County of Honolulu, Maui and the state don’t show any payments.
“We’re really confident we have a balanced budget that protects the most vulnerable while cutting spending for the fourth consecutive year,” Kenoi said.
Email Nancy Cook Lauer at ncooklauer@westhawaiitoday.com.
