A County Council panel gave its OK Wednesday to spending plans for $2.3 million in excess and lapsed fuel taxes on Hawaii Island.
The Finance Committee voted unanimously, with Puna Councilwoman Ashley Kierkiewicz excused, to advance to the full council bills 3 and 4, which would appropriate more than $859,000 in excess fuel taxes and reappropriate over $1.15 million in lapsed funds, respectively.
Both measures were introduced by Puna Councilman and Finance Committee Chairman Matt Kanealii-Kleinfelder upon request by the Department of Public Works.
Bill 3 would appropriate the $859,913 in fuel tax revenues collected beyond the $5.8 million anticipated over the past couple of years in Hawaii County.
Officials did not delve into reasons for the excess funds, just noting more was collected than anticipated when the budget was set in 2021. At that time, a gallon of gas cost around $3.50 to $3.60 on Hawaii Island. Gas prices in 2022 reached record highs, nearing $6 in some West Hawaii areas, amid Russia’s war on Ukraine.
The extra tax money would be split in accordance with percentages established in 2021 with $252,043 going to roadway projects, $177,913 to bridge inspection and repairs and $429,956 to district road improvements, per Bill 3.
Among the projects listed, in order of appearance, are Alii Highway improvements, Kalanianaole Avenue reconstruction, Kawili Street shoulder improvements, Kinoole Avenue improvements and rehabilitation, Kuakini Highway widening from Hualalai to Hawaii Belt Road, Manono Street improvements, Old Mamalahoa Highway rehabilitation, Oneo Lane, and Waianuenue Avenue improvements. Also listed are a variety of road and safety programs.
The projects are not a new list created for the excess funds, rather they are a carryover from the original ordinance and may be amended in the next biennial ordinance, said Finance Director Deanna Sako.
“I just want to clarify we are amending ordinance 22-64 and these projects were in that ordinance. We are just trying to distribute the dollars in the same arrangement,” said Sako.
Confusion existed on the Alii Highway project being listed, with two Kona testifiers passionately opposing what they believed to be the construction of the long-planned highway, also known as Alii Parkway and Kahului to Keauhou Parkway, as well as widening of Kuakini Highway.
North Kona Councilman Holeka Inaba clarified that the Alii Highway listed in the bill is only the extension of Alii Drive from Keauhou Shopping Center to the Napoopoo intersection, with Department of Public Works Director Steve Pause confirming.
“There are no new projects slated,” said Pause.
Of the nearly $430,000 earmarked for local roadway improvements, $218,976, would be allocated for use in the South Hilo and Puna districts with $130,706, or 30.4% going to road improvements in South Hilo alone. The next largest chunk, $64,450, or 14.99% of the funds, would be sent to North Kona for road improvements followed by South Kohala that is slated to receive $47,037, or 10.94%, for its roadways. The remaining districts would receive less than 7% of the funds.
Bill 4 reappropriates $1.519 million in lapsed fuel tax funds. The majority of that figure, $1.37 million, dates to fiscal years 2012-18, though just under $14,000 dates to 1996-98.
Under Bill 4, $1.28 million would be reappropriated for road projects including Mamalahoa Highway resurfacing from Kamalani Street to Kalamauka Road; Lanikaula Street rehabilitation; Palani Road/Alii Drive rehabilitation from Kuakini Highway to Lunapule Road; Manono Street rehabilitation; and Kilauea Avenue and Keawe Street rehabilitation. These are all STIP projects that are eligible for federal funding.
Of the remaining funds, $16,000 would go toward bridge inspection and repairs and $214,385 would go to road improvements in the North Hilo district.
Hawaii County’s 2022-23 budget estimated the highway fund balance at $19.1 million.
Hawaii County assesses a 23-cents per gallon fuel tax to help fund road maintenance and projects. The local tax is on top of 16 cents per gallon state tax and 18 cents a gallon federal tax.
A move in spring 2022 to cut 10 cents off the county’s tax to provide driver’s relief amid the gas price spike failed in the Finance Committee. The measure would have cost the county highway fund about $5.5 million and offer resident a savings of about $1.20 to $2.60 a fill-up, depending on the size of the vehicle.
The average price at the pump for regular gas on Hawaii Island was $4.98 a gallon on Wednesday, according to the American Automobile Association, which only includes Hilo data. Prices in West Hawaii are typically higher than the AAA figure with a gallon of gas at $5.09 in Kailua-Kona and $5.52 in Waimea on Wednesday.