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By operating conservatively, managing our money responsibly and taking advantage of the right opportunities during the past two years, Maui County government is entering the post-pandemic era in excellent financial shape.
My proposed fiscal year 2023 budget calls for investing in our people to build a better future for all. With runaway inflation, rising food and energy costs, and expensive housing, I know many of our local residents are struggling to make ends meet. That's why I am requesting a tax rate reduction for owner-occupied homes.
Last year, Maui County secured a record-low interest rate of 1.74 percent on $83 million in general obligation bonds. Higher real property valuations also increased our tax revenue base and the new county transient accommodations tax surcharge adds another big gain. Pre-pandemic, Maui County received about $23 million annually from state TAT; we estimate the new county surcharge will increase that revenue to $60 million.
The new TAT surcharge is key to better managing our hospitality industry. Visitors will pay their fair share for county-funded emergency services, infrastructure, parks and other amenities. My budget also funds our new PARK MAUI pilot program that reserves free resident parking at popular sites while charging nonresidents. I've also planned for new Planning Department staff to identify and penalize illegal short-term rental home operations. Residents will have better beach access with funding to expand parking in South Maui, Lower Paia and at Keawakapu Beach as we continue to work with the state Board of Land and Natural Resources to make it happen.
As we find ways to lessen our financial dependency on the hospitality industry, we must simultaneously diversify our economy and become more self-reliant. We can achieve both of these goals by strengthening diversified agriculture under the county's new Department of Agriculture, which opens in July.
The administration's budget extends our successful micro-grant program to help farmers and ranchers boost local food production as well as money to upgrade processing technology at the Kula Ag Park and to acquire the Lanai Ag Park. Grant funding has been set aside to help farmers and ranchers mitigate damage by feral animals. Other grants will be available to Maui Farm Bureau, Hawaii Farmers United, Hawaii Taro Farm and other organizations that advance agriculture.
More than $43 million will support perpetuation of Hawaiian culture through the work of Halau Ke'alaokamaile, in Upcountry and Halau of 'Oiwi Arts, planned for the heart of the Wailuku Town Redevelopment Project. Funds will also help to protect irreplaceable heritage sites such as the Bailey House Museum, Ka'ahumanu Church and Lahaina's Moku'ula and Mokuhinia Pond. To advance local arts and culture, I've allocated operational grants for the Maui Arts & Cultural Center, Nisei Veterans Memorial Center, Binhi at Ani Center, Hui Noeau Visual Arts Center and more.
Funding the Maui Economic Development Board will help to attract more 21st century careers to Maui County. Residents can train for these new opportunities through our investment in county education and job-training programs and in partnership with Hale Makua, MEO, the University of Hawaii Maui College and others.
Working families will benefit from my bullish plan to boost housing that local residents can afford to rent or buy. The County Charter currently mandates 3 percent of real property tax revenues to go into the Affordable Housing Fund. I propose an additional 4 percent -- a total of 7 percent -- to reaffirm our commitment to building more residential housing. It will help to expedite construction on some 2,500 affordable units already in the pipeline. By providing timely infrastructure upgrades to the Waiale Road culvert and extending Imi Kala Street, we can alleviate traffic and unlock a number of approved workforce projects in those areas. County-built infrastructure helps homebuilders to build more homes, more quickly, while offering high-paying construction jobs.
Each of these budget priorities supplement ongoing delivery of essential county services for all. Reliable clean water, sanitary waste disposal, dependable buses and timely response by our police, firefighters, public safety and emergency management professionals will be reinforced.
I believe in the practical wisdom of investing in our people. This bold budget will help our community to thrive now, and into the future.
* "Our County," a column from Maui County Mayor Michael Victorino, discusses county issues and activities of county government. The column alternates with "Council's 3 Minutes" every other weekend.