Buoyed by a projected tax revenue increases, Kauai County stands poised to make headway against decades of backlogged infrastructure repairs while also advancing the administration’s goal of a building a more resilient county through disaster preparedness and community planning, Kauai Mayor Derek Kawakami said Monday during his annual State of the County address. 

What You Need To Know

  • Kauai Mayor Derek Kawakami’s proposed $344.9 million operating budget and $103.6 million capital improvement budget for Fiscal Year 2025 are based on projected revenues of $345.7 million, a 5.6% increase of last year

  • The operating budget is $33.4 million (11%) more than last year, reflecting a doubling of road resurfacing and bridge-repair work plus increases in salaries, benefits and collective bargaining expenses

  • Kawakami said budgeting for core functions and services was determined by three underlying goals: preparing the county for adversity; planning smarter, stronger communities; and building “resilient families that can thrive for generations”

  • Kawakami said the county’s efforts to plan smarter, stronger communities spans everything from aggressive enforcement of transient vacation rental laws to land-management decisions that take into account rising sea levels

 

“While we must remain cautious as global conflict and economic uncertainty continue to threaten our fiscal stability, we are pleased to maintain our positive position in the upcoming year,” Kawakami said.

Kawakami’s proposed $344.9 million operating budget and $103.6 million capital improvement budget for Fiscal Year 2025 are based on projected revenues of $345.7 million, a 5.6% increase of last year.

The operating budget is $33.4 million (11%) more than last year, reflecting a doubling of road resurfacing and bridge-repair work plus increases in salaries, benefits and collective bargaining expenses.

“We are proud we are proud to continually adhere to the principles of a structurally balanced budget, which does not rely on the fund balance for recurring expenditures and preserves a roof reserve fund of 30% of last year’s general fund revenues,” Kawakami said. “We also submit a budget which fully funds the annual required contributions for the Employee Retirement System and other post-employment benefits, ensuring that we’re not leaving the next generation holding the bag.”

Kawakami said budgeting for core functions and services was determined by three underlying goals: preparing the county for adversity; planning smarter, stronger communities; and building “resilient families that can thrive for generations.”

Key to those connected goals, Kawakami said, will be planning for disasters.

The governor noted that emergency response teams that assisted in Maui’s recovery efforts returned to Kauai with experiences that have helped the county update and improve its own disaster-response plans and preventative actions. To that end, the budget includes $2.7 million in heavy equipment to help road crews manage vegetation and another $1.5 million to clear brush and large debris from county properties.

Kawakami said the county’s efforts to plan smarter, stronger communities spans everything from aggressive enforcement of transient vacation rental laws to land-management decisions that take into account rising sea levels.

Included in these efforts is the recent adoption of a form-based code for the Kaumakani area of West Kauai.

“The plantation camp zoning district formally recognizes those camps in the State Land Use Urban District and allows these culturally significant structures to be reconstructed and used in perpetuity,” Kawakami said.

Kawakami also addressed efforts to update and improve the island’s wastewater treatment infrastructure. The CIP budget calls for $1 million to improve resiliency of the Wailua and Waimea wastewater treatment plants, both of which are located in tsunami zones, and $2.7 million for upgrades and repairs to treatment plants across the island.

Among other key areas Kawakami addressed in his speech:

  • Kawakami said the county continues to seek solutions for the nearly full Kekaha landfill, including a new landfill location and vertical expansion.
  • The administration is proposing a new park security officer and additional parking enforcement worker on the North Shore to improve safety and alleviate public complaints.
  • The county has partnered with the state to offer a $1 million grant-in-aid program to combat invasive species such as rose ring parakeets and the coconut rhinoceros beetle.
  • Using revenue generated by the restructuring of real property tax rates for TVRs, the county is dedicating $12.5 million to its housing development fund, some $8 million more than the mandated amount to build affordable housing.
  • Last year, the county and its private developer partners broke ground on 221 new affordable housing units.
  • The budget appropriates $250,000 to initiate the development of the county’s first equestrian facility.