Hawaii County property values are up an average 4.75 percent over last year, making it more likely a budget will be crafted without raising the property tax rate.
Previous estimates had put values up about 3 percent. The certified property values statement released Thursday shows a net taxable real property value of $26.4 billion, up $1.2 billion from last year.
The new values will be taken into account as Mayor Billy Kenoi prepares his final proposed budget that is due by May 5.
Council members interviewed Friday said they are unlikely to seek a property tax hike, although some are looking at possible fee increases to pay for improved services.
“I don’t think property taxes should be raised,” said council Chairman Dru Kanuha.
“We’re not going to raise taxes,” said North Kona Councilwoman Karen Eoff, a sentiment echoed by South Kona/Ka‘u Councilwoman Maile David.
“I think there are other sources of revenue without raising property taxes,” said Kohala Councilwoman Margaret Wille, mentioning seeking a bigger share of the transient accommodations tax, applying for more federal and state grants and using bond funds to create future savings.
Council members, after listening to presentations from county departments over the past three days, said there are certain areas that may need tweaking or a small infusion to meet county needs.
One area of improvement in particular is a countywide mass transit master plan, to join the various transit plans created by community development districts.
“It’s a blueprint,” said Puna Councilman Danny Paleka, who, as chairman of the council’s Public Safety and Mass Transit Committee, will be helping implement the study.
Kenoi has submitted a $434.7 million preliminary spending plan for county operations. The operating budget is a 4.3 percent increase over last year. The increase is due primarily to union-negotiated pay hikes and federal and state mandates, county officials said.
An $81.7 million capital improvements budget focuses on repairing and expanding wastewater systems, improving park facilities and maintaining and repairing roads. There’s also money for a South Kona police station, improving holding cells, improving garbage transfer stations and beginning the process of closing the Hilo landfill.
The total value of net taxable real property last year, at $25.2 billion, was $1.7 billion more than in 2013-14, a 7 percent increase.
Individual property owners could be paying more property taxes even if the tax rate stays the same, because of rising property values.
Kenoi said he’s hopeful there will be room for a “small expansion of services,” such as adding vehicle registration services in Waimea, where two Department of Motor Vehicles clerks will supplement the driver license services at the police station.
The council has until June 30, the last day of the fiscal year, to pass a budget or the mayor’s budget automatically goes into effect July 1.
Last year’s budget, Kenoi’s first budget hike since taking office in 2008, was $416.9 million, or 5.7 percent higher than the previous year. It added 10 new positions and included raises for almost all county employees, union and nonunion alike. More than $20 million of the $22.6 million increase went for employee raises and increases in benefits.
