Water Board considers phased rate increase amid financial concerns

In a recent meeting of the Honolulu City Council, discussions centered on the proposed amendments to the budget, particularly concerning the Board of Water Supply's planned rate increases. The council is considering a series of significant rate hikes, starting with a 6% increase, followed by 7.5% in the subsequent year, and culminating in a series of 9% increases over the next several years. This proposal has raised concerns among council members regarding its potential impact on residents.

Councilmember Nishimoto emphasized the need for caution, suggesting that the Board of Water Supply should be given additional time to implement these changes. He noted that the board had previously indicated a need for three to four months before moving forward, which could push the timeline for these increases. The interim step proposed for January 2026 aims to provide the necessary time for implementation.

Councilmember Tupelo echoed these concerns, advocating for a more gradual approach to the increases. He pointed out that while the council can vote on the proposed rates, the financial burden of a consistent 9% increase over several years could be overwhelming for many residents. He suggested exploring alternative funding options, such as the Water Infrastructure Finance Innovation Act, which offers low-interest loans that could alleviate some of the financial pressure.

The council also discussed the potential for securing grants and improving lobbying efforts in Washington, D.C., to support water infrastructure projects. This could provide additional resources to mitigate the impact of the proposed rate increases.

As the council moves forward, the recommendation includes adjustments to the proposed budget, such as adding rulemaking authority for the customer assistance program and eliminating outdated references in the bill. The council is set to finalize these recommendations in the upcoming full council vote, with members remaining mindful of the implications for the community. The discussions reflect a broader concern about balancing necessary infrastructure funding with the financial realities faced by residents in Honolulu.