Budget, Finance, and Economic Development Committee (2025-2027) - 2026-04-23
Meeting Intelligence Preview
Meeting Summary
The Budget, Finance, and Economic Development Committee continued FY27 budget deliberations, approving multiple grants and conditions including $3.4 million for acquisition of a 14-acre parcel on Alahele Place in Kihei for flood mitigation and future North-South Collector Road, $3 million for Keauhali'i conservation easement (115.56 acres), and $1.5 million for Ka'ahumanu Church restoration. The committee also reduced tourism management funding from $450,000 to $300,000 with conditions for education and disaster preparedness, and cut $550,000 from the countywide DPW base yard facilities CIP.
Key Decisions (14)
Acquisition of 14-acre parcel on Alahele Place, Kihei
Approved $3.4 million bond funding under Department of Public Works for acquisition of TMK 2-3-9017, a 14-acre parcel to be used for southern terminus of North-South Collector Road and flood control. Located on Makai side of Piilani Highway near South Maui Police Department.
Keauhali'i Conservation Easement - $3 million
Approved up to $3 million from Open Space Fund for Keauhali'i to acquire 115.56 acres for conservation easement. Hawaii Islands Land Trust will serve as holder. Property includes burials and heiau, previously marketed for luxury home development.
Ka'ahumanu Church Restoration Grant - $1.5 million
Approved $1.5 million grant to Ka'ahumanu Church for restoration project. Church built in 1876, on National Historic Register, part of Royal Compound. Located across from council chambers.
Tourism Management Fund Reduction and Conditions
Reduced visitor industry tourism management grant fund from $450,000 to $300,000. Added conditions requiring funds be used for information and education including disaster preparedness for short-term rental visitors, invasive species awareness, etiquette in public spaces and parks, and cultural information.
Countywide DPW Base Yard Facilities CIP Reduction
Reduced appropriation by $550,000 for remaining total of $6,600,000. Department confirmed Molokai and Hana base yard projects would not be affected by the cut.
Small Grants Program Threshold Increase
Increased small grants threshold from $25,000 to $30,000 per grant to accommodate inflation and make grants more accessible to small nonprofits. Total fund reduced to $1.6 million.
Residency Area Funds Increase
Increased all council member residency area funds from $140,000 to $150,000 per district, with West Maui opting out of the additional $10,000.
Emergency Fund Reduction - $32 million
Reduced emergency fund by $32 million to reflect funds already authorized for Kona Low storm response, bringing balance to $85,851,900.
EV Charging Station Idle Fee
Created new idle fee of $1 per minute applied 10 minutes after charging ends until vehicle leaves charging stall for county-owned EV charging stations.
Lanai Public Works Highway Utility Worker Position
Added one new expansion position for highway utility worker for road maintenance on Lanai with six months funding ($37,854). Department confirmed position description already exists and no reorganization required.
Kipahulu Community Association Land Acquisition - $59,000
Approved up to $59,000 grant from Open Space Fund to Kipahulu Community Association for purchase of approximately 2.640 acres in Kipahulu (TMK 2-1-6-007-008) for conservation.
Makahiki Season Marketing Budget Reduction
Reduced Makahiki season marketing budget by $50,000 from $150,000 to $100,000 under Office of the Mayor Economic Development Program.
Ho'onani Village Water System Funding - $13 million
Discussion on $13 million from GET fund for Ho'onani Village mixed-use development water system improvements was tabled pending further information from water department and clarification on whether GET funds can be used for private development that will later be deeded to county.
Waikapu Country Town Private Wastewater Facility
Proposal for $500,000 zero-interest loan for design and permitting of private wastewater treatment facility to serve portion of Waikapu Country Town was discussed but withdrawn. Member Cook will draft resolution urging administration to fund through carryover savings.
Development Activity (5)
Ho'onani Village Mixed-Use Development
Workforce housing development requiring water system improvements. First homes targeted for mid-2029. Includes county's 23 acres. Water source, storage, pumps to become county assets.
Waikapu Country Town
Includes affordable housing, school, and other development. Seeking private wastewater treatment facility due to uncertainty about Central Maui Wastewater Reclamation Facility completion timeline (now projected 2030-2031).
Ma'alaya Regional Wastewater Reclamation System (MRWRS)
Regional wastewater system to eliminate injection wells from 12+ condominiums. Total project cost $12.48-16.14 million. One-year design/permitting timeline, one-year construction. Includes 1 million gallon irrigation storage pond for fire protection.
Central Maui Regional Wastewater Reclamation Facility
Major wastewater facility with projected completion now 2030-2031. $75 million in GET tax fund proposed, with $9.5 million to be moved to Countywide Sewer Capital Improvement Reserve Fund.
North-South Collector Road
Road project requiring acquisition of 14-acre parcel on Alahele Place for southern terminus. Federal funding eligible through MPO.
Market Signals (6)
Housing Demand
Waikapu Country Town and Ho'onani Village developments both stalled pending wastewater and water infrastructure solutions, indicating infrastructure constraints limiting housing supply.
Infrastructure
Central Maui Wastewater Reclamation Facility timeline slipped from 2027 to 2030-2031, creating uncertainty for multiple development projects dependent on sewer capacity.
Infrastructure
Ma'alaya Bay identified as EPA 303D impaired water body with less than 5% living coral, driving regional wastewater treatment investment to eliminate injection wells.
Commercial Demand
PGA Century Tournament cancelled, resulting in $150,000 budget reduction - indicates potential softening in high-end tourism/event market.
Sentiment
Council reduced tourism management funding and added conditions requiring education focus rather than promotion, reflecting community concerns about visitor impacts.
Infrastructure
Emergency fund reduced by $32 million for Kona Low storm response, highlighting climate-related infrastructure vulnerabilities and costs.