The Honolulu City Council Budget Committee rejected a bill that would have created a $10-a-month fee for residential curbside trash pickup, with members suggesting they’d rather look at raising property tax rates for the bulk of Oahu’s homeowners if there’s not enough money to pay for services.

The committee voted on Wednesday to shelve indefinitely Bill 29, which Mayor Kirk Caldwell’s administration estimates would net city coffers about $20 million annually.

Councilman Ikaika Anderson reminded colleagues that trash pickup historically has been paid for out of general city funds as a basic service.

“My own fiscal policy would be that we, as a body, be more honest with the taxpayer, telling them that it’s costing us more to provide these services which have historically been paid for by property taxes, thus we’re going to increase your property taxes accordingly,” Anderson said. “I just feel that a property tax increase, if that’s what we’re going to do if we need more money, is more justifiable and more honest to the taxpayer.”

But Tim Houghton, deputy director of the city Department of Environmental Services, said the administration would prefer to pass the increase onto only those who actually receive curbside pickup and not those who go without the benefit.

“Because it’s a service not provided to everybody, then it’s more of a fee for a service, and it should be looked at that way going into the future,” Houghton said.

In arguing for the bill, Houghton said businesses already pay the city a fee, while most multi-family residential property owners pay for private trash haulers. Property taxes currently pay about $100 million annually into the curbside collection program, he said. He noted also that Maui and Kauai counties pay higher fees for fewer services while Hawaii County does not provide trash pickup.

Council Budget Chairman Joey Manahan said after Wednesday’s vote that it’s unlikely the trash fee proposal will advance any further this year given the strong reservations of Council members. He and his colleagues will scour Caldwell’s budget for potential cuts and will “circle back” to consider the bill only if they see no other options.

“I think at this point it’s a really tough sell,” Manahan said.

He said he and others agree with Anderson that considering a raise in property tax rates would be preferable to hiking some of the fees. “We’re going to have to re-look at the cuts and then, if worse comes to worst, we’re going to have to look at real property tax increases.”

Caldwell’s $2.45 billion operating budget package calls for tax rate increases for the hotel-resort and Residential A tax classifications but keeps the standard residential rate at $3.50 per $1,000 of assessed value. Property taxes account for about 36 percent of the city’s revenue.

Manahan pointed out that the Budget Committee last month already shelved Bill 11, Caldwell’s plan to increase fuel taxes, a proposal that’s received an even chillier reception from Council members.

A handful of Oahu residents also testified against the trash pickup fee.

Kapolei resident Rich Levine said property taxes should pay for essential services, and that instituting a curbside trash fee was a “slippery slope” that could lead to fees for police or fire service.

“My concern is if the Council … allows this fee, what’s to stop HPD from coming up and saying ‘We now need to impose a fee if you want us to patrol your neighborhood’?” Levine said. “We pay for these services with our taxes, that’s why these taxes were established.”

Ewa Beach resident Kurt Fevella, a former Environmental Services Department employee, said city officials should audit the department “because a lot of money there is being wasted.”

The committee did pass Bill 10, which would increase the city’s motor vehicle weight tax; Bill 12, which would increase parking meter rates in Waikiki; Bill 35, which would increase nonresident admission to Honolulu Zoo; and Bill 36, which would increase golf course fees for nonresidents only.