Despite key revenue sources such as real property taxes still depressed due to the COVID-19 pandemic, Mayor Rick Blangiardi proposed a $2.9 billion operating budget with no tax increases or furloughs.

“We have $73 million less than our operating that was approved a year ago,” Blangiardi said. “We figured out a way to do that.”

The budget, which would begin on July 1, included cost saving measures such as deferring a $139.7 million contribution to retiree’s health care benefits.

The city would also no longer hire any new employees besides vacant positions granted an exemption, like openings for first responders.

Blangiardi’s budget included a proposed fee increase to enter Hanauma Bay for people over the age of 13-years-old from $12 to $25.

Blangiardi budgeted $485.7 million to improve the city’s sewage and wastewater infrastructure and $37.5 million to develop low income, affordable housing.

The $1 billion Capital Improvement Plan decreased by about 26% from the previous 2021 budget.

“The major reduction in our Capital Improvement Plan really had to do with the amount of monies that were allocated,” Blangiardi said.

The budget is expected to be presented to the full city council during its March 17th meeting.

City and County of Honolulu Mayor Rick Blangiardi will hold a news conference at 1 p.m. today to provide more details about the upcoming budget for fiscal year 2022.

Watch via the video above, or go to the mayor’s Facebook page.