Mayor Victorino proposes first budget for his administration

News Release from Office of the Mayor, March 25, 2019

Mayor Michael Victorino proposed his administration’s first budget to Maui County Council members on Monday afternoon, calling it a fiscally responsible and balanced spending program to invest in the future of Maui County.

Mayor Victorino’s spending priorities include operational costs for health, safety and public service; completion of ongoing projects; and fulfilling our obligations to employees – current and retired – with health and retirement benefits.

“Much thanks to Budget Director Michele Yoshimura and her staff and to department heads for their long hours and hard work in preparing this, my first budget,” Mayor Victorino said. “I’m proud to present this proposed fiscal 2020 budget to Maui County Council members.”

The proposed FY 2020 budget totals $869.5 million, which includes revolving and special funds, transfers between funds and expected grant and other outside revenue. Total county funds, including bonds for FY 2020, are estimated at $780.8 million, a $22.5 million increase, or 3 percent, more than the FY 2019 council-approved budget of $758.3 million.

Budget Highlights:

    • Attainable housing – an additional 1 percent, or $3.37 million, on top of the required 2 percent of real property tax revenues, bringing the total to $10.1 million to the Affordable Housing Fund.

    • Attainable housing funding through appropriations from the Affordable Housing Fund, including Hale Mahaolu Ewalu Senior Housing, Lanai Affordable Housing, work on the University of Hawaii Maui College dormitory renovation project and rental apartments in Lahaina.

    • Coqui frog eradication and environmental protection – $4 million

    • Open the Central Maui Landfill on one Sunday per month

    • A proposal to spend $22.1 million in social services; $26.9 million in housing assistance (including Section 8); and $14.6 million in other grants.

    • An investment in arts and education with funding for improvements and upkeep of facilities.

    • Infrastructure improvements and funding to complete ongoing projects, including reconstruction of the War Memorial Stadium parking lot and installing photovoltaic.

    • A focus on Upcountry and other dire countywide roadway improvements – $35.7 million.

    • Purchase of land in Hana for conservation, recreation, historical, cultural and other values – $2.25 million

Critical Capital Improvement Projects (figures rounded):

    • West Maui Recycled Water System Expansion – $11 million

    • Countywide Road Resurfacing and Pavement Preservation – $5.7 million

    • War Memorial Complex Paving Improvements – $2.75 million

    • Kaupakalua Road Pavement Reconstruction – $2.25 million

    • South Kihei Road Sidewalks Improvements – $1.9 million

    • Haiku Park Restroom – $500,000

    • Molokai Community Improvements – $3.1 million

    • Lanai Community Improvements – $2.5 million

    • Hana Community Improvements – $1.6 million

The spending plan proposes an increase of 54.5 equivalent positions, out of a total of approximately 2,700 employees. These increased positions include investment in future generations with the reinstatement of the Cadet Program for the Police Department; interns for the Department of the Prosecuting Attorney and an economic specialist in the field of technology.

With an estimated real property tax income of $337.2 million, the Victorino administration is proposing nominal increases in four property tax classifications and a decrease of 9.6 percent, or $1.48, for timeshare units. The increases would affect commercial, up by 14 cents per $1,000 of valuation; industrial, up by 3 cents per thousand; hotel and resort, up by 23 cents per thousand; and short-term rental, up by 27 cents per thousand.

Proposed increases for rates and fees:

    • Solid waste landfill tipping fee, from $97 per ton to $103 per ton

    • Residential refuse collection, a $1 increase from $32 to $33 per month

    • Wastewater-sewer fees, increase an average of 6 percent

    • Water, increase an average of 3 percent

    • Biodiesel fuel tax, to 12 cents per gallon (In FY 2019, a highway improvement fee was imposed on electric and hybrid vehicles.)

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