Latest news with #DepartmentofBudgetandFiscalServices
Yahoo
14 hours ago
- Business
- Yahoo
Grant changes approved for rail-affected businesses
Modifications to the city's financial relief program for small businesses negatively affected by construction of the over-$10 billion Skyline project to Kakaako have been adopted. The Honolulu City Council voted unanimously Wednesday to pass Bill 31, which increases the maximum allowed annual revenue for affected small businesses to $1 million, up from $750, 000, under the city's transit construction mitigation fund, or TCMF, grant program. The program, originally signed into law by Mayor Rick Blangiardi in 2024, was supposed to individually award any struggling, eligible business located along the rail corridor into downtown Honolulu with a $10, 000 grant. But only a few grants—out of the dozens of applications received by the city thus far—were actually awarded, city officials assert. 'Five awards of $10, 000 have been paid, ' Ryan Wilson, a city spokesperson, previously told the Honolulu Star-Advertiser. Wilson noted the city had received 34 applications submitted by local businesses. Of those, 15 applications were deemed ineligible. And 19 applications were returned for revision. To date, six applications were awarded—one on first submission, five on second submission, he said. 'The sixth business owner has not returned multiple calls and emails from the city, ' Wilson said previously. 'A letter will also be sent to the business owner providing a deadline to comply with the Hawaii Compliance Express (HCE ) certificate requirement, or the award will be terminated.' In March, Council members Radiant Cordero and Tyler Dos Santos-Tam offered new legislation to revamp the program. As adopted, Bill 31 will remove the program's number of employees limit, previously locked at 15 or fewer workers ; and require the applicant business to have opened at least 12 months prior to the start of any rail project construction within the transit construction mitigation zone in which the business is physically located, as determined by the city Department of Budget and Fiscal Services director. Previously, a grant applicant's business had to be open for business at their current physical location before Jan. 1, 2022. 'The expansion of eligibility for the (TCMF ) shows our commitment to making assistance more accessible and inclusive, allowing more small-and medium-sized businesses to receive the support they need, ' Dos Santos-Tam said in a statement. 'Rail project construction can create significant disruptions that impact day-to-day operations, and this bill helps ease those burdens so businesses can continue to serve their customers and maintain their employees.' Andrew Min, of family-owned Min Plastics &Supply Inc. at 921 Kaamahu Place in Iwilei, said his business did not apply to the city's grant program for a number of reasons—among them, the 75-year-old company's proximity to the rail line's route on nearby Dillingham Boulevard. 'I think we are on the opposite side of the street, ' Min told the Star-Advertiser after the meeting. 'So the grant covers the area adjacent to Dillingham, like one block off, so we're on the part that's not covered.' He also noted his family's company also generates more than $1 million in revenue each year. 'So we make more than what's covered, ' he said. But Min claimed he's glad the city offered financial relief to at least some eligible small businesses, and hoped they will continue to do so. 'From what I heard not many companies were eligible for it so they were revising it to include more people, ' he said. 'But even at $1 million we're still not captured.' Meanwhile, Min said rail construction along nearby Dillingham Boulevard does impact his family's company. 'It's definitely increased the frustration with customers coming in and out because access to coming in, they have to go around through Costco, turn around and come back, ' he said, adding access to company's street address can only be gained via Dillingham. 'And only from the eastbound direction because there's no left turn in the westbound direction.' He noted the city could think about using budgeted funds to redo the routing of traffic along Dillingham Boulevard 'to allow better access.' 'And I think that would probably have more impact with less money, ' Min said. Anthony Han, owner of Soul Chicken and Bliss Lounge on the 1000 block of Dillingham Boulevard, confirmed the city approved his $10, 000 grant application earlier this year. He received a check in the mail in April. But Han previously told the Star-Advertiser his business currently owes $60, 000 in unpaid rent. 'I have another debt around $45, 000, ' he asserted. 'It's not enough though, ' Han claimed of the awarded grant, 'the cost of everything went up.' In January, the city started offering $10, 000 grants to applicant businesses located near the rail line. At the time, TCMF grants were to be awarded on a first-come, first-served basis, based on authorized and available funding for the program. But by early February, the city had to extend the time to submit applications. That month, the Mayor's Office said the extension—to Feb. 21—was due to TCMF grant applicants not properly filing business documentation with the city. 'Many of the applications that were submitted to the portal needed to be returned to applicants for revisions, especially because they lacked the required documentation, ' Ian Scheuring, the mayor's deputy communications director, previously told the Star-Advertiser. He noted errors led to applicants being denied grant funding. 'The city has received numerous applications for the (TCMF ) program that did not qualify, or were not in compliance with the rules of the program and were rejected, ' Scheuring said previously. According to the city, the total dollar amount spent on this program so far includes $50, 000 for the five $10, 000 awards ; $13, 585 for the program's one-year payment toward its information management system ; and $967.94 to publish legal notices regarding administrative rules hearings on this city-run program.
Yahoo
11-03-2025
- Business
- Yahoo
City's proposed $5.14B budget under Honolulu Council review
The Honolulu City Council's budget hearings began Monday with an administrative overview of Mayor Rick Blangiardi's proposed $5.14 billion budget package for fiscal year 2026. The city's new plan—which proposes a $3.93 billion operating budget and a $1.21 billion capital improvement program that, if adopted, begins July 1—will cover its costs without raising real property taxes, according to officials. The latest spending plan is a more than 9 % increase over the city's current $4.7 billion budget, which the mayor officially signed and adopted in June. Key city revenues were highlighted, including 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. Those 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 told the Council's Budget Committee. 'Those classes drive the increase in real property tax.' Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Under the city's long-term liabilities, Kawano noted $117 million is meant to fund the city's other post-employment benefit, or OPEB, activity. A portion of those costs will be funded via federal COVID-19 monies. In recent months Honolulu Council and city officials pledged to repay eligible, unionized city workers employed during the pandemic 'temporary hazard pay '—compensation to employees who were temporarily exposed to unusually hazardous working conditions—in order to avoid legal entanglements. To that end, Kawano noted negotiations 'to settle hazard pay ' wrapped for at least one city union. 'Our managing director recently reached agreement with SHOPO, and we're working with two other large unions as we speak—HGEA and UPW, ' he said. Other long-term liabilities involve the over-$10 billion Skyline project expected to open for public service in Kakaako by 2031. But Kawano said the rail's second of three segments—from Halawa, past the airport, to Middle Street—will open this year, likely by 'the October time frame.' 'With regard to rail operations and maintenance costs, our estimate for FY26 is $120.7 million, ' he added. 'The second segment going from the stadium to Middle Street … is estimated to be $31.6 million.' 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. At the meeting, Council members fielded a host of questions to the city budget director. Andria Tupola queried how the city plans to generate more revenue to support its programs and services. 'Is there a strategy that you guys are implementing so that we can actually be able to break even at certain departments … so that we don't need to raise any taxes or fees ?' she asked. Kawano replied that 'the city is bound by statute on where we can raise revenues.' 'Again, our primary source of revenue is real property tax, ' he said. 'We are in an economy right now where residents and businesses feel like they pay enough taxes. That's the feedback we get.' 'They either feel that they're paying enough or they shouldn't pay any more, ' he added. 'And certain groups actually feel that way—that they shouldn't be paying any property taxes. So that's the environment we live in, so we actually have very limited areas in which we can drive more revenue.' Matt Weyer asked about the timeline for a pending city report over an empty-homes tax—one meant to penalize real-property owners who leave their Oahu residences vacant for extended periods. In December and following hours of blistering public testimony largely in opposition to such a measure, Council Chair Tommy Waters garnered a full Council vote to postpone the latest version of EHT legislation—known as Bill 46—until a city-commissioned study on the matter could be completed. As far as finalizing that study, Kawano said the city will provide an informational briefing on the EHT to the Council by late April with a final report to follow. Meantime, Waters queried how the city plans to pay for a new solid-waste municipal landfill on Oahu. On Dec. 10 the Blangiardi administration declared its intent to site the city's next dump on active farmland near Wahiawa owned by Dole Food Co. Hawaii. The city's move comes as it faced a state-imposed Dec. 31, 2024, deadline to find an alternate dump site, ahead of the planned closure of the 35-year-old Wai manalo Gulch Sanitary Landfill in Kapolei, in accordance with a 2019 decision and order by the state Land Use Commission. That West Oahu dump is set to close in 2028, though the landfill will not reach full capacity until 2032, the city said. Waters asked, 'Is there money in the budget for the new landfill ?' Kawano noted $77 million is budgeted for the next garbage dump. 'So that budget line item is on the CIP side, but it's not cash-funded. If we do it, it would be bond-funded, ' he explained. 'And it's going to depend where we end up—whether or not we do an acquisition during the next two years to get things started.' Kawano also claimed landfill funding—budgeted under the city Department of Environmental Services—relates to whether the city can get 'approvals in place ' and 'planning and design ' for the dump. 'But the complete development (and ) construction of the new landfill, if we can get there, will cost more than that, ' he added. 'We don't have a number yet.' The Council is expected to review the budgets of individual city departments as well as the operating and capitol budgets for the Honolulu Authority for Rapid Transportation through much of this week.
Yahoo
06-03-2025
- Business
- Yahoo
Officials discuss proposed 2026 budget
HONOLULU (KHON2) — City officials are set to discuss Honolulu's proposed budget for the 2026 fiscal year during a meeting on Wednesday, March 5. 12th Kīlauea eruption has commenced Mayor Rick Blangiardi and Andrew Kawano, Director of the Department of Budget and Fiscal Services, will provide details on the City's proposed Operating and Capital Improvement Project (CIP) budgets. Download the free KHON2 app for iOS or Android to stay informed on the latest news The discussion took place at 12 p.m. and outlined key budget priorities for the upcoming fiscal year. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
05-02-2025
- Business
- Yahoo
Honolulu extends deadline for rail-affected businesses to apply for compensation
JAMM AQUINO / 2023 Soul Chicken restaurant employee Cheryl Morris looks out at HART construction along Dillingham Boulevard. The eatery is one of the many businesses affected by rail construction. JAMM AQUINO / 2023 Soul Chicken restaurant employee Cheryl Morris looks out at HART construction along Dillingham Boulevard. The eatery is one of the many businesses affected by rail construction. Honolulu businesses affected by the ongoing construction of the nearly $10 billion Skyline rail project will now have more time to apply for financial relief, city officials announced Tuesday. The city Department of Budget and Fiscal Services says it will extend the application deadline for the so-called transit construction mitigation fund, or TCMF, grant online portal submissions for an additional two weeks. The city has said $10, 000 grants may be awarded to applicant businesses of 15 or fewer employees located near the rail line. Interested business owners will have until 10 a.m. Feb. 21 to submit their applications. The portal—which originally opened for applications Jan. 27—was scheduled to close Friday. TCMF grants will be awarded on a first-come, first-served basis, based on authorized and available funding for the program, the city said. Grants will be available to eligible businesses that : Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA.—Have fewer than 15 employees.—Generate less than $750, 000 in annual revenue.—Are located within one block of active rail construction on Dil lingham Boulevard.—Are currently open for business.—Are majority-owned by city residents.—Were open for business at their current physical location before Jan. 1, 2022.—Meet the business 10 % revenue decline requirement. The Mayor's Office said the extension was due to TCMF grant applicants not properly filing business documentation with the city. 'The city is extending the application deadline to give qualified businesses more time to compile the necessary paperwork and documentation that is required with every application, ' Ian Scheuring, the mayor's deputy communications director, told the Honolulu Star-Advertiser. 'Many of the applications that were submitted to the portal needed to be returned to applicants for revisions, especially because they lacked the required documentation.' He said those errors led to applicants being denied grant funding. 'The city has received numerous applications for the (TCMF ) program that did not qualify, or were not in compliance with the rules of the program and were rejected, ' he said. 'For example, the city has received applications from businesses that employ more than 15 people, that are located outside of the eligible geographic area, did not meet the 10 % revenue decrease requirement, and did not meet the documentation requirements—all of which disqualified the applications.' As of close of business Tuesday, the city received 28 applications for the TCMF grant program, according to Scheuring. The city's planned financial assistance comes after many businesses along the rail corridor's route toward Kakaako continue to struggle from month to month or have gone out of business altogether. Anthony Han, owner of Soul Chicken and Bliss Lounge on the 1000 block of Dillingham Boulevard, said he's among those who continue to struggle. 'We are kind of lucky because we have a good reputation for our chicken, that's why we are surviving, ' Han told the Star-Advertiser in late January. Han said he'd be interested in applying for the city's $10, 000 grant program, as business remains slow. He added ongoing that rail construction often hampers the ability of customers to show up to his combination Korean fried chicken eatery and karaoke bar, which employs four—a number that two years ago was closer to 10. 'After Thanksgiving it's gotten worse. … It's crazy slow, ' Han said. Grant money is being made available via the Hono lulu City Council's passage of Bill 40 in early 2024. At the time, the measure was meant to jump-start the city's existing yet dormant transit construction mitigation fund. Established through city legislation in 2018 under then-Mayor Kirk Caldwell, the fund was slated to 'receive and expend money to mitigate negative economic impacts from the construction of the Honolulu High Capacity Transit project, ' now known as Skyline. That year, the Council appropriated $2 million to provide real property tax relief to eligible businesses. And the following year, the Council added $750, 000 to the mitigation fund. In 2019, Caldwell issued a message stating that from then on, the Honolulu Authority for Rapid Transportation 'should be responsible for the transit construction mitigation measures ' and pay for any associated costs. But in early 2023, HART's board of directors voted unanimously to remove the rail agency from mention of having any responsibility for administering that fund. And a program was never established for distribution of money in the mitigation fund—leaving affected businesses empty-handed. Under the 2018 legislation, expenditures from that fund were to include grants to businesses forced to relocate due to rail construction ; grants for business interruption to compensate those along the corridor for the loss of income due to construction impacts ; and working capital advances—loans to cover operating expenses of businesses required to stay open during rail's construction phase. To bring about a measure of change, Council members Radiant Cordero and Tyler Dos Santos-Tam—who represent portions of the Kalihi community—co-sponsored Bill 40. 'The transit construction mitigation fund is here to help these businesses stay strong, ' Cordero said in a statement, 'and I encourage anyone eligible to take a look at the program and apply while the window is open.' Mayor Rick Blangiardi signed Bill 40 into law in February 2024. But rail construction's disruptions to local businesses remain, according to Han. He said that includes underground utility work—done either by HART contractor Nan Inc. or by Hawaiian Electric—which he claimed often blocks the entry of car-driving customers to a parking lot near his business. Han said if he were to receive a $10, 000 grant, he would use it to pay past-due rent for his business. But he noted $10, 000 is not a lot of money to help support an individual business in Honolulu—particularly one like his that's constantly affected by rail construction. 'It's better than nothing, though, ' he said previously. For more information about grant availability and the application process, visit. For further information, call 808-768-2622 or email hnlgrants @
