The Honolulu City Council today is scheduled to review for approval Mayor Rick Blangiardi’s $5.14 billion budget package for fiscal year 2026.
Submitted in early March, the mayor’s budget — which proposes a $3.93 billion
operating budget and a
$1.21 billion capital improvement program that, if
adopted, begins July 1 —
touted it would cover costs without raising real property tax rates, according to city officials.
The city says spending priorities include directing $143.8 million to affordable housing and homeless
service facilities.
The Council is expected to vote to revise the mayor’s spending plan, and take
action on other public
business.
“The Council is preparing to vote on 15 measures during the third reading, which includes all of the budget bills for this year,” Aron Dote, the Council’s director and chief communications officer, told the Honolulu Star-Advertiser. “Although the bills had passed out of the Budget Committee, there are some important discussions needed to address, particularly regarding vacancy funding and various allocation and appropriation
discussions.”
Blangiardi’s budget was deemed a more than 9% increase over the city’s current $4.7 billion budget, which the mayor officially signed and adopted in June 2024. Key city revenues were highlighted. Those included a projected $45.6 million increase in the city’s real property tax revenue.
Currently, those revenues amount to $1.72 billion but are expected to be at
$1.77 billion in fiscal year 2026.
Revenue increases occurred due to changes in the assessed values for residential properties across Oahu, according to Andy Kawano, city Department of Budget and Fiscal Services director.
“The residential class assessed valuation was up only 1.4%, and the Residential A classification was up over 5%,” he previously told the Council’s Budget Committee. “Those classes drive the increase in real property tax.”
Other long-term liabilities involve the over-$10 billion Skyline project expected to open for public service in Kakaako by 2031.
Overall, Kawano noted, city departmental budgets will increase by $147 million.
Some of those include rising public transportation costs — for bus and rail — which are pegged at
$48.9 million; $39.1 million to fund Honolulu’s green waste program and new wastewater billing system in sanitation; and an increase in salaries due to overtime for public safety and staff recruitment at $34.2 million.
Kawano also asserted the city’s next CIP budget targets $697.9 million for the construction of police, fire, ambulance and ocean safety facility improvements as well as upgrades to city-owned parks, streets and utilities.
As part of the budget
process, the Blangiardi administration proposed a
10-year, 115% sewer fee rate increase that’s expected to begin this summer.
City officials say proposed sewer fee hikes under city-initiated Bill 60 are necessary to support ongoing wastewater operations and maintenance efforts, as well as a $10.1 billion capital improvement program for
Oahu’s wastewater collection and treatment system that is planned through 2040.
And they assert the work includes a $2.5 billion upgrade to the Sand Island Wastewater Treatment Plant as required under a 2010 federal consent decree.
On May 27, the Council’s Budget Committee approved on a split vote the passage of a committee draft of Bill 60.
Budget Committee Chair Tyler Dos Santos-Tam’s version of the measure, which shaves the city’s decade-long span for increased rates down to about six years, will start Jan. 1, 2026, and run through 2031.
Dos Santos-Tam’s Bill 60 proposes sewer fee increases for a household that uses about 6,000 gallons per month — deemed 50% of all single-family households in Honolulu — equates to a 6% increase in sewer fees in
fiscal year 2026, 7.5% in fiscal year 2027, 8.5% in fiscal year 2028, followed by 9% over the remaining three
fiscal years.
The Council is also expected to review for approval Honolulu Authority for Rapid Transportation’s $968.3 million budget package proposed for city rail in fiscal year 2026.
The meeting begins at
10 a.m. inside the Council chambers, 530 S. King St.