HILO — Diane Nakagawa, director of the Hawaii County Finance Department, told the Council on Oct. 7, 2025, that mandated wastewater projects and the Hilo wastewater treatment plant will drive a large near‑term increase in capital improvement cash flow and long‑term debt service, and that the county’s current and projected financial capacity should inform finalization of the general plan’s objectives.

Nakagawa and Deputy Leah Keikai walked the council through the county’s debt‑capacity modeling and cash‑flow projections. Finance staff said the county has historically spent about $50 million per year on CIP (general county projects), but adding the Hilo treatment plant and other wastewater projects required under administrative orders of consent (AOCs) produces years with a several‑fold increase in required cash flow.

“We haven’t had something this significant when we’re looking at over a billion dollars in required mandated wastewater infrastructure improvements through these administrative orders of consent,” Nakagawa said, urging that draft plan objectives be aligned with realistic financing capacity.

Finance department remarks and figures discussed in the meeting

- Historic CIP baseline: Finance staff said the county’s typical annual CIP outlay has been about $50 million.

- Wastewater and AOCs: The department identified the Hilo wastewater treatment plant project and other AOC‑driven wastewater projects as major additions to the CIP cash flow that substantially increase projected debt service over the next decade.

- Recent project volumes and funding: Council discussion noted that the county identified more than $2 billion in CIP projects across the last three years and that bond‑identified projects in the most recent year approached $500 million. Finance staff also said the administration recently allocated $20 million of fund balance to CIP in the current budget cycle.

- Debt service modeling and timing: Finance presented a 35‑year debt service projection showing existing debt and the additional debt service that would result from issuing bonds for the wastewater projects; staff said the county may need to reconsider schedule, priorities and revenue options to manage the resulting obligations.

Council concerns and policy implications

Council members asked whether the draft general plan should be simplified or prioritized to match the county’s realistic financial capacity. Several members urged the council and administration to collaborate on prioritizing “key” projects that provide the greatest benefit for available funds.

In response to questions about revenue options or new sources, finance staff said the department was oriented toward conservatively modeling existing revenue streams and that, while other revenue options may be required, decisions will involve council, the mayor and department heads together in budget cycles.

Votes at a glance

- Motion: “Postpone this measure to the call of the chair.” Motion by Council member Holaka Inaba; second by Council member Michelle Galimba.
- Outcome: Approved (motion carries with 7 ayes). Two council members were recorded as excused at the vote.

Why it matters

Finance staff framed the wastewater AOC work and Hilo treatment plant as a near‑term fiscal constraint that will shape how much of the draft general plan’s capital and program actions the county can fund in the coming decade. Council members and staff said the draft plan should be aligned with CIP capacity and that further discussion of prioritization and funding options is necessary.

Ending

Council postponed the general plan measure to the call of the chair to allow time for additional edits, departmental commitments and alignment with the finance department’s analysis of CIP capacity and AOC obligations.