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This week at City Hall, the big focus is spending. The City Council has two special budget meetings, plus a full council meeting to urge state lawmakers not to dip into the city’s rail savings. All this, while companies that lost in their bid for a lucrative rail contract with the city are putting up a fight. Civil Beat is reporting from the inside.

Martin Challenges Mayor’s Explanation on Fuel Tax

1:32 p.m.
City Council Budget Chairman Ernie Martin says Honolulu Mayor Peter Carlisle shouldn’t say an increased fuel tax will be applied to road repairs when the mayor proposed slashing the money spent on capital improvements like road repairs.

Martin questioned City Budget Director Mike Hansen on the matter Wednesday afternoon.

“The mayor’s response was that this was to provide additional resources to repair our roads, which is OK, but how do you reconcile that with the fact that both of those budgets have decreased?” Martin said, referencing a comment he said Carlisle made about the fuel tax on the PBS program Insights. “You’re not really directing additional resources… it would be an inaccurate statement, wouldn’t you say?”

“I would hate to say it would be inaccurate,” Hansen said.

“The fact speaks for itself!” Martin shot back. “The administration cut 40 percent (from the CIP budget)… You really can’t make an argument that you are directing more revenue for that activity.”

Hansen then explained how today’s borrowed money becomes tomorrow’s debt, and the large role borrowing for road repairs has played in the city’s growing debt.

“I’m not questioning your rationale that we need to get control of our debt,” Martin said. “The concern I have: It’s contradictory what the mayor has already stated. Although it’s only a one-cent increase, the tax is not one-cent. It adds to what we already have (charged) our constituents.”

Zoo Considers Sending Rhino to Hospice

11:24 a.m.
Honolulu Enterprise Services Director Sid Quintal is talking about some of the increasing costs the Honolulu Zoo faces. Among them, end-of-life care for a seriously ill rhinoceros.

“We’ve got a sick rhino right now and it doesn’t look good,” Quintal said. “He’s got failing kidneys and we’re going to have to look at hospice for him. Unfortunately, these things happen.”

Martin Wants to End Free Parking for City Workers

10:43 a.m.
City Council Budget Chairman Ernie Martin says city officials at Kapolei Hale should have to pay for parking. Martin says a free-parking incentive was established years ago, to entice city workers to relocate to Kapolei Hale. But he says many of those workers have since retired.

“I don’t know why the city is continually allowing them to park for free,” Martin said.

City Budget Director Mike Hansen cautioned that the city would have to develop the “appropriate fee structure.”

Martin said he believes it should be a flat rate “across the board” for city workers.

“I’m trying to help you generate additional revenues, director,” Martin said. “I know it won’t be significant but it will help us pay for some of our costs.”

City Council Rejects Move to Reclaim Rail Money

9:42 a.m.
City Council members had passionate debate this morning about how they can best serve their constituents, with many expressing concern over angering state lawmakers, and Chairman Nestor Garcia at one point reminding his colleagues to be civil.

Ultimately, the council voted down a measure to recover funds that the state keeps as part of a processing fee for the GET surcharge, a tax developed to pay for the city rail project, even though the majority of council members agreed the amount the state keeps is excessive.

Here’s how they voted (“aye” means support for the failed measure to recover the funds):

Ikaika Anderson: Aye
Tom Berg: Aye
Romy Cachola: No
Stanley Chang: No
Tulsi Gabbard Tamayo: No
Breene Harimoto: No
Ann Kobayashi: No
Ernie Martin: No
Nestor Garcia: Aye, with reservations

Council Takes on GET Surcharge

9:02 a.m.
After a marathon budget meeting that went past 9 p.m. last night, City Council members are back at it this morning.

Before the second day of budget discussions begins, the full council is meeting to discuss the state’s processing of the GET surcharge for rail. City Council member Tom Berg called for to determine how much the state actually needs to process the tax collection. He and other City Council members have said the state is robbing the city by taking more than is necessary.

But Managing Director Doug Chin cautioned the city that “this might not be the best time to ask for something like that.”

“The purpose behind this resolution is a good one,” Chin said. “This might not be the most sensitive time… In other words, the state is going through a budget crisis while they’re hundreds of millions of dollars in the hole.”

Chin also pointed out that the state appears to be backing off of other measures that could deal a financial blow to the city, like a cap to the city’s share of hotel tax revenue, and an attempt to borrow $200 million in rail funds.

Chin is almost always diplomatic, but City Council member Romy Cachola cut to the chase:

“Your concern is that you might piss them off?” Cachola asked.

“What I said was, ‘I don’t know if this is the most sensitive time to bring this up,'” Chin said. “We’re not questioning the substance of what’s being said here.”

City Council member Stanley Chang echoed what Chin said, and Cachola said he appreciates what Berg is trying to do but believes the city — just by discussing the matter — has already successfully sent a strong message to the state. City Transportation Chairman Breene Harimoto said he believes the city needs to “pick its fights,” and said he was “disturbed” by Berg’s press release about the matter, which he said “ruffled more than a few feathers.”

City Council member Tulsi Gabbard Tamayo also commented on the press release, which she said didn’t serve a collaborative spirit that’s needed between lawmakers.

“The adjectives and verbs that are used throughout this press release, such as ‘hurling verbal firebombs across Punchbowl street,’ those are not words that I would use,” Gabbard Tamayo said. “The inflammatory message is not one of working together… So I’m not going to be able to support this resolution.”

City Council member Ikaika Anderson was the only member who spoke in strong support of the measure.

“What we’re voting on is not a media article, it’s not a press release,” Anderson said. “With all due respect to our friends across the street, they need to do what they need to do over there. We need to do — the nine of us — what we need to do. I was elected by the residents of City Council District 3 to do a job… The fact of the matter is, retaining 10 percent of this surcharge is not right. It just is not right.”

Berg apologized for using adjectives that he acknowledged were “a little over the top,” but said he wants to correct an injustice for constituents who want to know why “government coddles, condones and makes excuses for bad behavior.” Berg said he refuses to step down because he is doing what he was elected to do.

“I am speaking on behalf of the people of District 1, who can’t take it any more,” Berg said. “I can’t let down 45,000 people from District 1. They’re the ones who are pissed off.”

Council Chairman Nestor Garcia appeared frustrated to hear council members express concern over “ruffling feathers.”

“There are times, members, when you need to take a stand and take a message and not worry about ruffling feathers,” Garcia said. “This is your job. We have a fiduciary responsibility! I’ve ruffled a few feathers of my own. I don’t worry about the reaction.”

Still, Garcia said he would prefer to wait until next year to pursue the issue.

Previous Editions of Inside Honolulu

April 12, 2011: City Council member Stanley Chang passionate about funds for roads; Council advances real property tax measure; Council on a roll with disclosures.

April 11, 2011: Two rail protests filed against city; Tom Berg speaks out against state money grab; U.S. Senate race could have ripple effect on City Hall.

April 8, 2011: City Council member Ernie Martin taps IBEW business manager for HART; Peter Carlisle distant from Big Island, Kauai mayors; Government leaders attend prayer breakfast.

April 7, 2011: Hawaii mayors issue joint response on tentative HGEA deal; Was Honolulu Mayor Peter Carlisle cut out of labor bargaining? U.S. Transportation Sec. Ray LaHood chats about Honolulu’s “light rail.”

April 6, 2011: City, state and other Hawaii counties agree to deal with HGEA; Council grows capital spending; City Council member asks for legal fees to fight administration.

April 5, 2011: Council member Tulsi Gabbard Tamayo says her deployment to Afghanistan is unlikely; HART nominees still not official; City cites $1.4 billion for Ansaldo contract.

April 4, 2011: Todd Apo and Don Horner surface as mayor’s possible picks for transit authority; Tom Berg nominates Panos Prevedouros for transit authority; State awaits results on more dengue cases; Losing rail bidders set for debriefs.

April 1, 2011: Gov. Neil Abercrombie taps former City Council candidate; GOP wants Nestor Garcia ethics investigation; Budget Chairman Ernie Martin schedules two special budget meetings.