Budget committee advances multiple transfers to cover Kona low storm response, fuel and department shortfalls; administration estimates ~$100M in storm costs

The Budget Committee advanced a package of transfers on May 19 to address storm response, rising fuel costs and departmental shortfalls across city agencies, and the committee reported each item out for adoption after brief presentations and questions.

Key actions: The committee approved hand‑carried CD1 amendments and reported out the following items for adoption: Reso. 26‑106 (up to $1,500,000 from the solid waste special fund for disaster debris monitoring and hauling), Reso. 26‑107 (DFM energy cost transfers), Reso. 26‑109 (HPD equipment transfer, $4,000), Reso. 26‑114 (up to $1,000,000 for Transportation Services fuel/electricity shortages), Reso. 26‑119 (up to $5,500,000 reallocation within HPD to cover salary deficits and overtime), Reso. 26‑121 (up to $585,000 for Honolulu Fire Department operating increases), Reso. 26‑122 (transfers to cover accrued vacation and anticipated arbitration/salary increases across multiple departments), Reso. 26‑123 (up to $57,000 to Emergency Medical Services for fuel shortfalls), and Reso. 26‑124 (up to $650,000 for Motor Vehicle/Driver Licensing processing costs).

Administration comments: Andy Kawano, director of Budget and Fiscal Services, told members the administration has tracked storm‑related costs and currently estimates roughly $100 million in recovery needs — about $30 million in operating costs and $70 million in capital improvements — and is assembling department‑level object codes to provide a full recap to the council. "The total funding from the last briefing was about $100,000,000, $30,000,000 in operating, $70,000,000 in CIP," Kawano said.

Transport and fuel pressure: Roger Morton, director of the Department of Transportation Services, said DTS has seen fuel prices rise about $1.40 per gallon since early March and uses about 5,000,000 gallons annually, producing a budget shortage that prompted the request. Morton said he did not expect service reductions and that any additional FY27 shortfalls would be addressed through standard budget processes.

Police and fire needs: Honolulu Police Department leadership asked the committee to reallocate existing allotments to cover overtime, retroactive bargaining obligations and recruitment incentives, describing the request as necessary to sustain operations without increasing the department’s overall authorized budget. Battalion Chief Craig Souza confirmed HFD supports transferring salary savings to cover parts, fuel and energy costs tied to storm response.

Emergency services and fuel billing: Deputy Director Ian Santee (Emergency Services) said EMS is projected to be about $57,000 over its budgeted fuel accounts for FY26 and described a mix of fueling arrangements and interdepartmental billing under the city's master agreement.

Committee direction and next steps: Chair Tara Okimoto and committee members asked the administration for a department‑by‑department breakdown and timing of transfers. Kawano said the administration will provide a storm cost recap with object‑code details. Several members noted some transfers were needed because budgets were prepared before recent fuel price increases and storm impacts; the committee signaled willingness to consider further transfers if needed before the fiscal year closes.

Outcome: Each resolution was amended as noted (CD1 in several cases) and reported out of committee for adoption by the full council. No roll‑call votes were recorded in the committee transcript; the chair indicated items were approved by voice without objection.

Why it matters: The transfers address immediate operational shortfalls and begin to centralize storm costs ahead of a larger recovery accounting process; the committee's request for an itemized recap aims to give the public and council members clearer visibility into how storm impacts will be funded.