Budget, Finance, and Economic Development Committee (2025-2027) - 2026-04-27
Meeting Intelligence Preview
Meeting Summary
The Budget, Finance, and Economic Development Committee concluded its fiscal year 2027 budget deliberations, recommending passage of the $1.6 billion county budget (Bills 55-60) and Resolution 26-63 on fuel tax rates. The committee also reconsidered and passed Bill 76 on water system development fees for first reading, reversing an earlier referral decision. A late amendment was discussed to reduce commercialized residential property tax rates by taking $218,086.15 from Camp Maluhia funding and Open Space Fund allocations.
Key Decisions (9)
Fringe Benefits Calculation Adjustment
Committee accepted fringe cuts corresponding to council-retained cuts from fiscal year 26 for police and public works departments, incorporating reductions already made to A account positions.
Grant Conditions for Cameron Center West Maui and Na'aikane o Maui Inc.
Added conditions to Office of Recovery grants: Cameron Center West Maui funds must be used for planning and pre-development; Na'aikane o Maui Inc. funds must be used for cultural education, monitoring activities, and support for West Maui rebuilding including Royal Complex Master Plan development.
Hawaiian Cultural Restoration Revolving Fund Renaming
Committee approved renaming the fund in Appendix A Part 2 to match the previously passed Bill 63 CD1 amendment.
Delana East Farmer Market Fee Exemption Placement
Approved moving the farmer market exemption language from an asterisk under the table to page 26 of Appendix B for clearer indication of the exemption.
Conforming Amendments Authorization
Authorized staff to make conforming amendments to Bills 56, 57, 58, 59, and 60 based on revisions made to Bill 55.
General Budget Provisions Section 19 Subsection H Amendment
Restored fiscal year 26 language requiring the managing director to include certain information on each CIP in the quarterly CIP report. Budget director confirmed the change was inadvertent.
Bill 76 Water System Development Fees - First Reading
Committee reconsidered earlier referral to WI Committee and instead recommended passage on first reading. A Rule 7B discussion will occur before second reading.
Fiscal Year 2027 Budget Package - First Reading
Recommended passage of Bills 55 CD1 (budget), 56 CD1 (capital program), 57 CD1 (bond authorization), 58 CD1 (laps bond), 59 CD1 (wastewater revolving fund loan), 60 CD1 (water supply revolving fund loan), and Resolution 26-63 (fuel tax rates).
Commercialized Residential Property Tax Rate Adjustment
Committee discussed reducing commercialized residential tax rates to tier one at $225 and tier two at $350 as requested by Mr. Crowley. The $218,086.15 offset would come from reducing Camp Maluhia allocation and $108,000 from Open Space Fund excess.
Development Activity (1)
Cameron Center West Maui
Planning and pre-development funding for community center facility; grant funding allocated through Office of Recovery Program
Market Signals (3)
Infrastructure
Water Department rates expected to see significant increases over the next few years due to historically low rates held through inflation and expansion of municipal water service through acquisition of private water systems.
Housing Demand
Commercialized residential property owners expressed concern about excessive tax rate increases, with testimony from Mr. Crowley prompting committee to consider reducing rates from proposed levels.
Sentiment
County budget has grown from $400,000 in earlier years to $1.6 billion, indicating substantial growth in county operations and services.