Mayor Kirk Caldwell defended his proposals for a trash pickup fee, higher bus fares and an increase in property taxes Thursday against criticism from some City Council members.

Caldwell, during a news conference at Honolulu Hale, maintained that the city must find ways to generate money, citing a decline in the Highway Fund and other revenue and an increase in nondiscretionary expenditures, including employee retirement, debt service and collective bargaining. All of Caldwell’s “revenue enhancers” will need Council approval.

“You just can’t cut, cut and thrive. You got to cut but you also have to enhance,” Caldwell said. “We want to do it in a way where we’re selective and it doesn’t have an impact on those who can least afford it. If for some reason they (his proposals) don’t pass or they’re lowered or adjusted in some form or if there’s less money, it means that other services that are in our budget would have to be cut.”

Caldwell is seeking in his $2.45 billion operating budget a trash pickup fee of $10 per month for the single-family homes on Oahu with three bins, which would net an estimated $20 million annually. Homes with four bins would pay $12.50 per month, and those with five bins, $15 per month.

Trash pickup is highly subsidized by property tax revenue and currently costs the city about $50 per home per month, according to officials. Caldwell said condominiums pay private trash haulers while single-family homes pay no additional costs for the service.

In 2014 Caldwell’s administration had proposed a $10 monthly trash pickup fee, citing a budget shortfall caused in large part by pay increases included in collective bargaining contracts. The measure stalled in the Council’s Budget Committee after constituents voiced overwhelming opposition. Councilman Ernie Martin contended at the time that homeowners already pay for curbside pickup through property taxes.

Martin said Thursday the fee could set a precedent, adding that “it’s going to open the door for us to impose fees for other services that are being subsidized.”

Property taxes

Councilman Joey Manahan, who heads the Budget Committee, said the proposal would be vetted by the Council.

“Anytime you have a new fee, you’re going to get pushback,” said Manahan, who added that he pays for trash pickup through his condominium’s maintenance fee. “I don’t think it’s unreasonable given that many of us already pay for trash service, especially if you’re living in an apartment building.”

The mayor’s budget also includes a proposal to increase the Residential A property tax by 30 cents per $1,000 of assessed value, which is estimated to net about $6 million in the next fiscal year. Residential A covers non-owner-occupied properties worth more than $1 million. There are about 10,800 properties in that category.

The Residential A tax classification was approved 7-2 by the Council in 2013. Residential A properties do not have home exemptions and are currently taxed at $6 per $1,000 of assessed value. Standard properties are taxed at $3.50 per $1,000 of value.

A bill pending before the Council would create a tiered tax-rate system for Residential A properties.

The budget also proposes a tax increase for hotel and resort properties of 50 cents for every $1,000, which is also estimated to net $6 million in revenue next fiscal year. Resort and hotel properties are taxed at $12.90 per $1,000 of value.

Additionally, city officials said bus fares need to be raised because city policy mandates that between 27 percent and 33 percent of TheBus revenue needs to come from the farebox. The proposal would raise bus fares across the board over the next four years, including a 25-cent increase each year for an adult single-ride fare, which is currently $2.50. The increase is estimated to generate about $6 million annually.

The proposal would also increase a Handi-Van single fare incrementally to $4 by 2020. The current fare is $2, and fares have not increased since 2001, according to city officials.

‘Tough hill to climb’

Bus prices for one-way cash fares and annual and monthly passes for adults and youths increased in 2009 and 2010. The city had cited rising operating expenses for its 531 buses and said fares had not increased since 2003.

Council Chairman Ron Menor told the Honolulu Star-Advertiser on Thursday he is “glad that the mayor’s budget proposals include funds for important core services that our communities need, however, the (administration’s) proposals for fee and bus fare increases need to be thoroughly vetted because residents are already having a difficult time coping with the high costs of living.”

Menor added that the tax and fee proposals “will face a tough hill to climb at the City Council.”

Caldwell also highlighted proposals for a slew of projects and other initiatives in his $956 million capital improvements and operating budgets, which include 522 positions that will remain deactivated, and 191 new positions.

Other budget areas:

>> Homelessness: $5.7 million for Housing First programs, $1.7 million for Hale Mauliola and $1 million for a hygiene center on Kuwili Street. Caldwell is also proposing to add five positions for a third crew to enforce the city’s sidewalk nuisance and stored property ordinances.

>> Rail: $3.5 million for the planning, design and equipment for a multimodal transit fare collection system, and $8.1 million for transit-oriented development and bus-and-rail integration

>> TheBus and Handi-Van: $5.45 million for bus service and hour restoration and $21.2 million for the acquisition of buses and Handi-Vans

>> Sewer: $655.9 million for wastewater projects

>> Road repaving: $30 million for road repaving and rehabilitation, and $5 million for pothole and emergency road repairs, and seal-and-pavement preservation

>> Parks: $1.5 million to restore comfort stations and refurbish play courts, and $47.3 million for other park improvements

Executive Summary of Mayor Kirk Caldwell's budget plan by Honolulu Star-Advertiser on Scribd