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City Council members refused to back down amid threats of litigation from Honolulu Mayor Peter Carlisle, and passed their own operating and capital budgets for a new rail agency on Friday.

Both the council and the mayor have said they’re willing to take the disagreement over who has authority over the transit agency’s budget to court if necessary.

The council approved , which outlines the Honolulu Authority for Rapid Transportation’s $18 million operating budget, and , pertaining to its $355 million capital budget.

By passing the bills, the council exerted its authority over the HART budget. Carlisle had deliberately left the HART out of the larger city budget that he submitted to the City Council in March.

The spending plans were developed by the city’s Rapid Transit Division, which will be transferred to become part of the semi-autonomous HART when it officially begins it work on July 1. The appointed HART board will hold its first meeting Saturday, an informational session for the incoming members.

Budget Chairman Ernie Martin led the council in amending and passing the budgets, against the Carlisle administration’s wishes. (The matter came to a head on May 17, when Carlisle sent a memo to the council, threatening to veto their work.)

“If not for the fact that these bills were introduced, there would be no public discussion,” City Council member Ernie Martin said. “Your vote here today does not mean you support the project… but the fact that you have an opportunity to discuss this matter, the fact that your constituents have an opportunity to comment on these matters, is important.”

Council members have for months argued with the Carlisle administration about the meaning of “semi-autonomous.” Council members say the charter question voters approved in November to create HART outlines their authority over the agency’s budget. Carlisle says the council will be briefed on the budget, but shouldn’t have the authority to manage it.  

“I was and still am willing to go to court with the administration over this matter,” said Council member Ikaika Anderson. “I would really rather not.”

In a Wednesday press conference, Honolulu Mayor Peter Carlisle confirmed that he’d be willing to sue the City Council over its position.

Carlisle told Civil Beat that the cost of legal fees would not be passed on to taxpayers. He said he sees no conflict of interest with the city lawyers — who represent both the executive and legislative branches — representing both the City Council and the mayor on the issue.

Anderson said the council tried to find a compromise with the Carlisle administration by removing some items in the budget, like financial penalties the council would have levied against HART for not following its rules.

The council maintained what Anderson characterized as two critical conditions:

* Allowing the City Council to manage the new agency’s budget

* Prohibiting HART from floating bonds to pay for the rail project until it enters into a Full Funding Grant Agreement with the federal government, which would guarantee the project federal funding for the rail project

Managing Director Doug Chin said the mayor “very much appreciates” the council’s attempts to reach a solution, and said Carlisle would look closely at the budget the council passed.

Ultimately, though, Chin says the mayor still takes issue with the council’s interpretation of the charter question, which may signal a stalemate over the matter. He points to section 17-108 of the , which says “The authority shall have management and control over the moneys made available to the authority in the special transit fund established to receive the county surcharge on state tax.” (Council members have countered with another section of the charter, which says “the council shall, with or without amendments, approve the authority’s appropriation requests.”)

“It comes down to, first of all, the charter, and specifically section 17-108,” Chin told Civil Beat after the council’s vote Friday. “Secondly, whether the bill that was just passed out is consistent with the mayor’s own promises to the people when he campaigned for the creation of HART.”

Chin says it will be up to Carlisle how he reacts to the council’s latest action, but he says he’s hopefuly

“I feel like we’re closer to coming to some sort of resolution, but I’m not sure,” Chin said. “The mayor said we would go to court if we have to, and we will, but we’re going to keep trying to find a resolution.”