State lawmakers are still considering allowing Honolulu to聽extend its General Excise Tax surcharge for rail, but have said they won鈥檛 do it without a commitment from the city to come up with other funds for the $10 billion project.

The Honolulu City Council took the first steps toward complying with that demand this week by giving preliminary approval to聽, which adds just one word — 鈥渃ity鈥 — to the list of sources that can be used to fund rail. It would open the door to using property tax revenues.

Property taxes are the the city鈥檚 primary source of revenue, projected聽to pay聽for 48 percent of operating costs in fiscal year 2018.

Most of the action involving funding for rail construction has been occurring at the Capitol, but on Wednesday it was a topic at Honolulu Hale as well. Cory Lum/CIvil Beat

The bill passed in one of聽a series of 5-4 votes聽Wednesday night, with council members Trevor Ozawa, Ann Kobayashi, Carol Fukunaga and Ernie Martin voting against it.

Fukunaga cited concerns among her elderly constituents over using property taxes to fund rail.

Others expressed concerns about using city funds on the project, but said the bill should get an initial consideration and that the council must wait to see what state lawmakers decide to do.

The Legislature has a Friday deadline to act on the rail tax bill, .

鈥淚鈥檒l see where it goes in committee and make a decision at that point,鈥 Councilman Ikaika Anderson said. 鈥淏ut please understand that my 鈥榓ye鈥 vote tonight in no way signals my intent to continue supporting this going forward.鈥

If the Legislature passes SB 1183 with a sufficient extension of the GET surcharge, it would render Bill 42 鈥渕oot and irrelevant,鈥 Councilman Ron Menor said.

鈥淲e鈥檙e taking this measure up for discussion purposes only,鈥 Menor said.

The council also gave a first reading.聽It would limit the use of GET surcharge revenue to rail construction. The funds can currently be used on HART聽administrative, operating and personnel expenses.

The bill would also prohibit those funds from being used for the project鈥檚 compliance with the Americans with Disabilities Act.

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