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Higher bills ahead: Honolulu City Council OKs sewer fee hike in $5.1B budget

HONOLULU (KHON2) — The city's $5.1 billion budget passed after a marathon city council session that ended at 9 p.m. June 4. Some of the additions include money for expanded ambulance service, traffic safety upgrades near schools and fully funding the new Department of Ocean Safety. Justice found for victim of viscous dog attack in Manoa But it's a controversial sewer fee increase that was the biggest issue debated. The city administration earlier had proposed a 115% increase over the next 10 years, starting at a 10% hike. What passed by a slim five-to-four vote was a measure proposed by the city budget committee to minimize the impact on consumers. The new payment schedule will split sewer bills between a 40% base rate for sewage services and a 60% variable rate based on water usage, as an incentive to reduce water consumption.'The lower the amount of water that you use, the lower your bill is going to be. But the fact of the matter is, most people use about 6,000 gallons a month, or 9,000 gallons a month, so it's going to affect the most amount of people at that level,' said City Council Chair Tommy Waters. The rate schedule assumes yearly increases for the next six years of 6%, 7.5%, 8.5%, 9%, 9% and 9%. An annual 3% increase would kick in starting in 2033. The increases are required to pay for $2.5 billion upgrades to Oahu's largest sewage treatment plant on Sand Island and $10 billion for improvements to the island's sewer lines and pump stations. Download the free KHON2 app for iOS or Android to stay informed on the latest news Waters had proposed moving money from the Transit Accommodations Tax and unused funds from vacant city department positions to help lower the sewer fees. But the city's budget director warned it could negatively impact the city's bond rating, making it harder to borrow money. 'I couldn't convince my colleagues to do that this year. It was a bold step. The administration did not support it. And you know, I'm not going to give up, though this is too important to give up.' Waters said. The mayor is expected to sign the full budget into law. The new sewer fee structure would take effect starting January 1. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.