WAILUKU - The cover photo on Maui County's 2-inch-thick fiscal year 2010 budget packet was a symbolic choice, a rare silversword plant thriving on the volcanic rock of Haleakala, Mayor Charmaine Tavares said Friday.
"We're still growing even though we're in some not-so-great soil," she said.
Tavares said that while some utility rates would go up, Maui County's government would not need to resort to layoffs, furloughs or any real property tax hikes for the mayor's proposed fiscal 2010 budget.
The budget proposal goes to the Maui County Council, which has until the end of May to take action. The new budget goes into effect July 1.
Total county revenue for the operating and capital improvement budgets will go up 2 percent to $572 million for fiscal year 2010 over this year, according to her proposal.
"No jobs have been cut," Tavares said during a packed news conference in the Planning Department conference room.
In fact, she wants to add another 15 positions. The mayor's relatively sunny outlook - especially compared to other parts of the country - stems from property tax revenue increases from hotels and time-share properties, a significant infusion of federal stimulus and state revolving-fund dollars as well as funding cuts to county departments and nonprofits, among other things, she said.
However, Tavares said her proposed 2010 budget basically means it is about the same or less than the current year. The 2 percent increase would cover some previously promised union employee raises and the increasing costs of health care and other benefits, she said.
Council Chairman Danny Mateo said overall he liked the mayor's proposal.
"I was expecting to hear a lot worse," he said, adding that everyone needs to realize the budget "pie is now a tart."
Tavares said her "tight and focused budget" was possible because department heads and nonprofit executives have been working since August to cut their budgets by as much as 15 percent.
Department heads saved money by putting off equipment purchases, leaving unfilled positions empty for a while and eliminating or delaying travel and training programs, Budget Director Fred Pablo said.
Much of the county's home and condominium property values flat-lined or, in some instances, plummeted since the recession hit the nation. But hotel, resort and time-share values increased property tax revenues overall in Maui County by 7 percent or $15.4 million, Tavares said.
Net real property tax revenues are expected to come in at $235.7 million, which makes up 40 percent of the county budget. County Managing Director Sheri Morrison said the hotel room tax revenue may change because she anticipates some of the hotels to appeal their assessed property tax values with the county.
The cost of providing solid waste, water and wastewater services continues to increase, while infrastructure needs constant expansion, repair or replacement, Tavares said. To help offset these costs, Tavares proposes raising the average single-family home's wastewater rate by $5.47 a month; water rates would rise $1.75 a month, except for agriculture; and residential refuse collection fees would be $2 more a month.
Tavares said that if the county were able to get its wish list of ready-to-go public works projects for President Barack Obama's American Recovery and Reinvestment Act, the 2010 budget could go up to $736 million. So far, the county has applied for $35 million from the act with many more requests on the way, she said.
The actual 2009 budget has risen to $648 million so far because of transfers from the general fund to cover unexpected losses to divisions, such as $16 million for solid waste and $1 million to the Waiehu Municipal Golf Course, Pablo said. Tavares administration officials also received cash from outside sources, like the fulfilled federal grant applications or more money from the state Kupuna Care Program, he said.
Tavares' proposed 2010 budget calls for an increase in capital improvement projects from $127.5 million to $159 million, or a 25 percent increase from this year.
She said the projects, $43 million of which would be paid for through bond sales, would help fix the county's infrastructure and put people back to work. The list includes $6 million to complete the Market Street improvements, $20 million for the long-awaited Kihei police station and more than $47 million for wastewater treatment upgrades, new water sources and better water distribution.
The new budget provides at least $27.3 million for nonprofits that serve a full host of services, including housing, human concerns, transportation, economic development, water conservation and environmental protection. Tavares said that's less than last year, but still substantial, and two of her Department of Housing and Human Concerns heads found another $400,000 in outside funding sources for nonprofits.
One of the nonprofits hit hard with cuts by the mayor's proposed budget is Maui Nui Botanical Garden in Wailuku. The county grant is down $25,000 from this year to $100,000.
"I don't know what to say; I wasn't expecting it to be that much," said Lisa Schattenburg-Raymond, the garden's executive director. "We will have to rethink this. The worst case we anticipated was a 10 percent reduction. That was the rumor."
She said the botanical garden uses the county grants to pay for its four-person staff and has a total budget of about $300,000. Schattenburg-Raymond said she hadn't asked for more money in three years, even though the garden's costs are up 20 percent and donations and plant sales are down.
"I'm not sure yet what we'll do," she said. "If they don't have the money, they can't give it to you. But I haven't seen the entire (county) budget yet."
Sandy Baz, executive director for Maui Economic Opportunity Inc., said its grants were down overall, but it was unexpectedly hit with losses to MEO's youth services and business-development program of about 25 percent and 8 percent, respectively.
Baz said he was uncertain why many of the nonprofits lost funding when overall the county budget rose 2 percent. However, Baz said he looks forward to reviewing the details and was pleased with the county's current economic position.
* Chris Hamilton can be reached at chamilton@mauinews.com.
