Latest news with #Kawano
Yahoo
04-06-2025
- Business
- Yahoo
Council to review city's proposed $5.14 billion budget for approval
The Honolulu City Council today is scheduled to review for approval Mayor Rick Blangiardi's $5.14 billion budget package for fiscal year 2026. Submitted in early March, the mayor's budget—which proposes a $3.93 billion operating budget and a $1.21 billion capital improvement program that, if adopted, begins July 1—touted it would cover costs without raising real property tax rates, according to city officials. The city says spending priorities include directing $143.8 million to affordable housing and homeless service facilities. The Council is expected to vote to revise the mayor's spending plan, and take action on other public business. 'The Council is preparing to vote on 15 measures during the third reading, which includes all of the budget bills for this year, ' Aron Dote, the Council's director and chief communications officer, told the Honolulu Star-Advertiser. 'Although the bills had passed out of the Budget Committee, there are some important discussions needed to address, particularly regarding vacancy funding and various allocation and appropriation discussions.' Blangiardi's budget was deemed a more than 9 % increase over the city's current $4.7 billion budget, which the mayor officially signed and adopted in June 2024. Key city revenues were highlighted. Those included a projected $45.6 million increase in the city's real property tax revenue. Currently, those revenues amount to $1.72 billion but are expected to be at $1.77 billion in fiscal year 2026. Revenue increases occurred due to changes in the assessed values for residential properties across Oahu, according to Andy Kawano, city Department of Budget and Fiscal Services director. 'The residential class assessed valuation was up only 1.4 %, and the Residential A classification was up over 5 %, ' he previously told the Council's Budget Committee. 'Those classes drive the increase in real property tax.' Other long-term liabilities involve the over-$10 billion Skyline project expected to open for public service in Kakaako by 2031. Overall, Kawano noted, city departmental budgets will increase by $147 million. Some of those include rising public transportation costs—for bus and rail—which are pegged at $48.9 million ; $39.1 million to fund Honolulu's green waste program and new wastewater billing system in sanitation ; and an increase in salaries due to overtime for public safety and staff recruitment at $34.2 million. Kawano also asserted the city's next CIP budget targets $697.9 million for the construction of police, fire, ambulance and ocean safety facility improvements as well as upgrades to city-owned parks, streets and utilities. As part of the budget process, the Blangiardi administration proposed a 10-year, 115 % sewer fee rate increase that's expected to begin this summer. City officials say proposed sewer fee hikes under city-initiated Bill 60 are necessary to support ongoing wastewater operations and maintenance efforts, as well as a $10.1 billion capital improvement program for Oahu's wastewater collection and treatment system that is planned through 2040. And they assert the work includes a $2.5 billion upgrade to the Sand Island Wastewater Treatment Plant as required under a 2010 federal consent decree. On May 27, the Council's Budget Committee approved on a split vote the passage of a committee draft of Bill 60. Budget Committee Chair Tyler Dos Santos-Tam's version of the measure, which shaves the city's decade-long span for increased rates down to about six years, will start Jan. 1, 2026, and run through 2031. Dos Santos-Tam's Bill 60 proposes sewer fee increases for a household that uses about 6, 000 gallons per month—deemed 50 % of all single-family households in Honolulu—equates to a 6 % increase in sewer fees in fiscal year 2026, 7.5 % in fiscal year 2027, 8.5 % in fiscal year 2028, followed by 9 % over the remaining three fiscal years. The Council is also expected to review for approval Honolulu Authority for Rapid Transportation's $968.3 million budget package proposed for city rail in fiscal year 2026. The meeting begins at 10 a.m. inside the Council chambers, 530 S. King St.
Yahoo
29-05-2025
- Business
- Yahoo
Changes coming to city grant program for rail-affected businesses
The City and County of Honolulu's financial relief effort for small businesses negatively affected by ongoing construction of the over-$10 billion Skyline project is on track for proposed changes. That's because the city's so-called transit construction mitigation fund, or TCMF, grant program—which Mayor Rick Blangiardi signed into law under Bill 40 in February 2024—was supposed to individually award any struggling, eligible business located along the rail corridor into Kakaako with a $10, 000 grant. But the city says only a few grants—out of the dozens of applications its received thus far—were actually awarded. 'Five awards of $10, 000 have been paid, ' Ryan Wilson, a city spokesperson, told the Honolulu Star-Advertiser this week. Wilson noted the city has received 34 applications submitted by local businesses. Of those, 15 applications were deemed ineligible. And 19 applications were returned for revision. To date, six applications were awarded—one on first submission, five on second submission, he said. 'The sixth business owner has not returned multiple calls and emails from the city, ' Wilson asserted. 'A letter will also be sent to the business owner providing a deadline to comply with the Hawaii Compliance Express (HCE ) certificate requirement, or the award will be terminated.' Legislation to expand eligibility to floundering businesses along the rail line who could receive TCMF funds recently materialized. The Honolulu City Council's Budget Committee on Tuesday voted to pass Bill 31, which seeks to increase the maximum allowed annual revenue for small businesses to $1 million, up from $750, 000. The measure's other proposed amendments would remove the number of employees limit, previously locked at 15 or fewer workers ; and require the applicant business to have opened at least 12 months prior to the start of any rail project construction within the transit construction mitigation zone in which the business is physically located, as determined by the city Department of Budget and Fiscal Services director. Previously, a grant applicant's business had to be open for business at their current physical location before Jan. 1, 2022. The full Council may review Bill 31 for possible approval at its meeting on Wednesday. Before the vote at Tuesday's committee meeting, Council member Radiant Cordero—who co-sponsored the measure in March with Tyler Dos Santos-Tam—asked BFS Director Andy Kawano 'if there's a need for rule-making again since there's going to be new criteria with this program ?' Kawano replied, 'Yes, we're going to have to amend the rules we currently have in place.' 'One requirement, for instance, is the limitation on employees ; I think it's 15 or fewer right now, ' he added. 'So that's going to have to be amended.' Kawano confirmed that a 'public notice ' will have to be issued over the program's potential changes. After the meeting, Dos Santos-Tam noted Bill 31 updates will expand the grant program's requirements. 'The expansion of eligibility for the (TCMF ) shows our commitment to making assistance more accessible and inclusive, allowing more small and medium-sized businesses to receive the support they need, ' he said in a statement. 'Rail project construction can create significant disruptions that impact day-to-day operations, and this bill helps ease those burdens so businesses can continue to serve their customers and maintain their employees.' Cordero agreed. 'These businesses provide more than just jobs and services ; they bring life and identity to our neighborhoods, ' she said in a statement. 'Supporting Bill 31 ensures our small businesses, which play a vital role in our communities, can keep thriving as our city grows and changes.' Cordero and Dos Santos-Tam—who respectively represent portions of the Kalihi and Iwilei communities—co-sponsored Bill 40 as well. Meanwhile, Anthony Han, owner of Soul Chicken and Bliss Lounge on the 1000 block of Dillingham Boulevard, said he's hanging on to his business in the face of Skyline's construction that's slated through year 2030. 'I've made a little more money than last year or a few years ago, but I'm still struggling, ' Han told the Star-Advertiser. 'That's why I'm thinking about whether to close this place or not.' Han said he currently owes $60, 000 in unpaid rent. 'I have another debt around $45, 000, ' he asserted. 'That is a true story.' Still, he confirmed the city approved his $10, 000 grant application earlier this year : he received a check in the mail in April. 'It's not enough though, ' Han claimed, 'the cost of everything went up.' In January, the city started offering $10, 000 grants to applicant businesses located near the rail line. At the time, TCMF grants were to be awarded on a first-come, first-served basis, based on authorized and available funding for the program. But by early February, the city had to extend the time to submit applications. That month, the Mayor's Office said the extension—to Feb. 21—was due to TCMF grant applicants not properly filing business documentation with the city. 'Many of the applications that were submitted to the portal needed to be returned to applicants for revisions, especially because they lacked the required documentation, ' Ian Scheuring, the mayor's deputy communications director, told the Star-Advertiser previously. He noted errors led to applicants being denied grant funding. 'The city has received numerous applications for the (TCMF ) program that did not qualify, or were not in compliance with the rules of the program and were rejected, ' Scheuring said previously. According to the city, the total dollar amount spent on this program so far includes $50, 000 for the five $10, 000 awards ; $13, 585 for the program's one-year payment toward its information management system ; and $967.94 to publish legal notices regarding administrative rules hearings on this city-run program.
Yahoo
15-05-2025
- Business
- Yahoo
Honolulu Council advances bill to offset sewer fee hike
Honolulu City Council legislation to defray costs associated with the city's planned 10-year, 115 % sewer fee rate hike slated to start this summer has advanced on the first of three readings. The Council voted unanimously Wednesday to pass Bill 43, meant to redirect a portion of the 3 % visitor-generated Oahu transient accommodations tax, which in part is earmarked for Honolulu's rail project, to the city's sewer fund. The Council's passage of the bill—sponsored by Chair Tommy Waters—comes as the city plans for new fee increases to address rising operational costs and fund critical sewer-related projects within the city Department of Environmental Services' $10.1 billion capital improvement program, scheduled for 2025 to 2040. That includes work to upgrade the Sand Island Wastewater Treatment Plant to full secondary treatment at an estimated cost of $2.5 billion. Bill 43, as drafted, temporarily would amend the disposition of the city's OTAT revenues so that 50 % would be deposited into the transit fund, while 41.66 % would go into the sewer fund. The legislation also allocates 8.34 % to create a special fund, one to be named by the city Department of Budget and Fiscal Serv ices, to mitigate impacts of visitors on public facilities and natural resources and 'supplement any funds regularly appropriated for that purpose.' If approved, Bill 43 would take effect July 1, 2027, and be repealed June 30, 2037. But in a letter sent Monday to the Council, BFS Director Andy Kawano stated Bill 43 was not a feasible option for the city to pursue. 'This measure will negatively impact the city's general fund and deviate from the intended purpose of the TAT, which is to provide general fund capacity to fund city services ; mitigate the strain visitors place on public facilities, emergency services, and natural resources ; and provide additional funding for rail (i.e., 'Skyline') construction, ' Kawano wrote. He added 'enterprise funds, such as the sewer fund, are structured to be financially self-sustaining through user fees.' 'Redirecting public tax revenues to subsidize an enterprise fund introduces long-term financial risks, including potential violations of bond covenants, possible downgrades to the city's bond rating, and increased borrowing costs, ' the budget director asserted. 'Furthermore, such a diversion may lead to service reductions or tax increases to balance the budget in future years as more dollars will need to be allocated to fund collective bargaining increases, rail operation and maintenance and increased public safety and health needs, et cetera.' 'We respectfully oppose the bill as it compromises sound financial principles, risks long-term fiscal sustainability, and unfairly shifts the burden of enterprise operations onto taxpayers who may not benefit from those services, ' Kawano stated. At Wednesday's meeting, ENV Director Roger Babcock also spoke in opposition to Bill 43. 'It is, of course, your purview and kuleana to use revenues however you want from the tourists' transient accommodation tax, ' he told the Council. 'The problem though is this was previously slated to go into the general fund, to be used for various other purposes. If it's not used for those other purposes, then it either cannot happen, or funding from those would have to come from other places.' 'So it is no different than taking real property tax and putting it from the general fund into the sewer fund, which we have been very clear from testimony that that is very problematic, ' Babcock said. Waters generally disagreed with the city's perspective, questioning the ENV director on the efforts the city had taken to lower costs to ratepayers. 'Because I believe that a 100 % increase is going to be devastating to local families, ' he added. In response, Babcock replied, 'The program is very efficiently run.' 'We have operations and maintenance costs which we basically hold steady at current rates, except for inflation, ' he added. 'The other component is our capital program and our debt service … so we don't have any control over that, we have issued a lot of debt already over the past 20 or 30 years, and so we do have very large outstanding obligations, and that's about 50 % of the annual operating costs.' To that, Waters asserted the city's proposed executive operating budget for fiscal year 2026—Bill 22—includes a provision allowing the BFS director 'to transfer money from other departments, if there is excess, into the sewer fund, which, as far as I can tell, has never been done, but it's in the budget bill.' Others from the community also do not support Bill 43. In submitted written testimony, Honolulu resident Milton Kotsubo said he opposed 'this bill and all bills that move funds designated for specific purposes to other purposes.' 'This muddies the water so that it becomes difficult to observe what money is allocated for what purpose, ' he wrote, in part. 'All budget allocations should be clearly specified what the funds are for and the source of the funds.' Meanwhile, Waters' new measure likely will not stop the city's sewer fee hike as presented under city-initiated Bill 60. In October, ENV initially proposed to increase sewer fees annually for the next 10 years—by 9 % annually over the first six years, followed by four smaller annual increases of 8 %, 7 %, 6 % and 5 %. The city says, an average single-family residential sewer bill totals approximately $110.89 a month. By July 1 that bill could rise to $122.04 a month. But since that time other versions of Bill 60 materialized, including a revision by ENV itself that supposedly lessens the initial blow of higher fees to its customers. During an April 29 Council Budget Committee meeting, Babcock presented a so-called 6 % option that would see sewer rates rise by 6 % on July 1. Those rates would increase by 7.5 % in 2027, 8.5 % in 2028, 9 % in the following four years, then rise by 8 %, 7.5 % and 7 % in the final three years, ending in the year 2035. Under this 6 % option, the city said the same average single-family residential sewer bill in the first year would go to $119.18 a month instead of $122.04, a 2.3 % difference. At that meeting, Waters said the city's new 6 % option is 'putting the big rate increases at the end of the 10-year cycle, rather than at the beginning.' With regard to Bill 60, Waters' tentative proposal to increase sewer fees annually for the next decade includes a 6.75 % increase for the first five years, starting July 1. The initial increases would be followed by an 8.75 % increase for the next two years, then a decrease to 7.75 %, 6.75 % and 5.5 % over the remaining years, 'thereby creating savings, ' he said. Waters said instead of a 100 % increase over the decade, 'it would amount to approximately about a 70 % increase over 10 years.' The Council's Budget Committee is expected to review various versions of Bill 60 at its May 27 meeting.
Yahoo
11-05-2025
- Automotive
- Yahoo
New data reveals Tesla's unexpected dominance in shrinking EV market: 'There are few homegrown EV options'
Amid widespread controversy surrounding Tesla, new data shows that sales for the electric vehicle automaker have actually grown in Japan. The Japan Automobile Importers Association reported a 56% yearly increase in first-quarter sales in 2025 for vehicles categorized as "others." According to Nikkei Asia, Tesla accounts for most of the vehicles in that category. Despite Japan's overall EV market declining by 33%, imported EV sales are on the rise. In fact, imports account for about 75% of overall EV sales in Japan, according to Teslarati. The publication said the introduction of the new Model Y and various incentives may be impacting the spike in vehicle demand. There's also the added financial benefit for EV drivers. Drivers can save around $1,500 a year on gas and maintenance by switching to the more planet-friendly upgrade. Electric cars produce zero tailpipe pollution and generally have a smaller carbon footprint over their lifetimes than gas-powered cars, according to the Environmental Protection Agency. Data from Japan showed that EV sales for all Japanese brands combined were less than Tesla during Q1. S&P global analyst Yoshiaki Kawano mentioned that Japanese automakers don't offer many EV options for local consumers, which pushes them toward other eco-friendly brands. "There are few homegrown EV options, so in some cases people who want to buy EVs reluctantly choose imports," Kawano said. Teslarati commenters agreed that the EV market in Japan could use some upgrades. "EV market in Japan is tiny," one wrote. While demand for Tesla vehicles is up in Japan, the automaker is facing significant challenges elsewhere. Tesla revealed plunging profits in Q1, announcing that revenue dipped 9% and auto revenue dropped 20%. In addition, the automaker's net income was down 71% from last year. According to CNN, Tesla CEO Elon Musk told investors he would scale back his role with the Department of Government Efficiency to focus on the auto company. Musk's political involvement has drawn significant backlash in recent months. Some analysts even called the brand damage "irreversible." Do you trust Tesla to produce quality products? Absolutely I trust Tesla not Elon I'm not sure Not at all Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
11-03-2025
- Business
- Yahoo
City's proposed $5.14B budget under Honolulu Council review
The Honolulu City Council's budget hearings began Monday with an administrative overview of Mayor Rick Blangiardi's proposed $5.14 billion budget package for fiscal year 2026. The city's new plan—which proposes a $3.93 billion operating budget and a $1.21 billion capital improvement program that, if adopted, begins July 1—will cover its costs without raising real property taxes, according to officials. The latest spending plan is a more than 9 % increase over the city's current $4.7 billion budget, which the mayor officially signed and adopted in June. Key city revenues were highlighted, including a projected $45.6 million increase in the city's real property tax revenue. Currently, those revenues amount to $1.72 billion but are expected to be at $1.77 billion in fiscal year 2026. Those increases occurred due to changes in the assessed values for residential properties across Oahu, according to Andy Kawano, city Department of Budget and Fiscal Services director. 'The residential class assessed valuation was up only 1.4 %, and the Residential A classification was up over 5 %, ' he told the Council's Budget Committee. 'Those classes drive the increase in real property tax.' Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Under the city's long-term liabilities, Kawano noted $117 million is meant to fund the city's other post-employment benefit, or OPEB, activity. A portion of those costs will be funded via federal COVID-19 monies. In recent months Honolulu Council and city officials pledged to repay eligible, unionized city workers employed during the pandemic 'temporary hazard pay '—compensation to employees who were temporarily exposed to unusually hazardous working conditions—in order to avoid legal entanglements. To that end, Kawano noted negotiations 'to settle hazard pay ' wrapped for at least one city union. 'Our managing director recently reached agreement with SHOPO, and we're working with two other large unions as we speak—HGEA and UPW, ' he said. Other long-term liabilities involve the over-$10 billion Skyline project expected to open for public service in Kakaako by 2031. But Kawano said the rail's second of three segments—from Halawa, past the airport, to Middle Street—will open this year, likely by 'the October time frame.' 'With regard to rail operations and maintenance costs, our estimate for FY26 is $120.7 million, ' he added. 'The second segment going from the stadium to Middle Street … is estimated to be $31.6 million.' Overall, Kawano noted, city departmental budgets will increase by $147 million. Some of those include rising public transportation costs—for bus and rail—which are pegged at $48.9 million ; $39.1 million to fund Honolulu's green waste program and new wastewater billing system in sanitation ; and an increase in salaries due to overtime for public safety and staff recruitment at $34.2 million. Kawano also asserted the city's next CIP budget targets $697.9 million for the construction of police, fire, ambulance and ocean safety facility improvements as well as upgrades to city-owned parks, streets and utilities. At the meeting, Council members fielded a host of questions to the city budget director. Andria Tupola queried how the city plans to generate more revenue to support its programs and services. 'Is there a strategy that you guys are implementing so that we can actually be able to break even at certain departments … so that we don't need to raise any taxes or fees ?' she asked. Kawano replied that 'the city is bound by statute on where we can raise revenues.' 'Again, our primary source of revenue is real property tax, ' he said. 'We are in an economy right now where residents and businesses feel like they pay enough taxes. That's the feedback we get.' 'They either feel that they're paying enough or they shouldn't pay any more, ' he added. 'And certain groups actually feel that way—that they shouldn't be paying any property taxes. So that's the environment we live in, so we actually have very limited areas in which we can drive more revenue.' Matt Weyer asked about the timeline for a pending city report over an empty-homes tax—one meant to penalize real-property owners who leave their Oahu residences vacant for extended periods. In December and following hours of blistering public testimony largely in opposition to such a measure, Council Chair Tommy Waters garnered a full Council vote to postpone the latest version of EHT legislation—known as Bill 46—until a city-commissioned study on the matter could be completed. As far as finalizing that study, Kawano said the city will provide an informational briefing on the EHT to the Council by late April with a final report to follow. Meantime, Waters queried how the city plans to pay for a new solid-waste municipal landfill on Oahu. On Dec. 10 the Blangiardi administration declared its intent to site the city's next dump on active farmland near Wahiawa owned by Dole Food Co. Hawaii. The city's move comes as it faced a state-imposed Dec. 31, 2024, deadline to find an alternate dump site, ahead of the planned closure of the 35-year-old Wai manalo Gulch Sanitary Landfill in Kapolei, in accordance with a 2019 decision and order by the state Land Use Commission. That West Oahu dump is set to close in 2028, though the landfill will not reach full capacity until 2032, the city said. Waters asked, 'Is there money in the budget for the new landfill ?' Kawano noted $77 million is budgeted for the next garbage dump. 'So that budget line item is on the CIP side, but it's not cash-funded. If we do it, it would be bond-funded, ' he explained. 'And it's going to depend where we end up—whether or not we do an acquisition during the next two years to get things started.' Kawano also claimed landfill funding—budgeted under the city Department of Environmental Services—relates to whether the city can get 'approvals in place ' and 'planning and design ' for the dump. 'But the complete development (and ) construction of the new landfill, if we can get there, will cost more than that, ' he added. 'We don't have a number yet.' The Council is expected to review the budgets of individual city departments as well as the operating and capitol budgets for the Honolulu Authority for Rapid Transportation through much of this week.
