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For Immediate Release
June 27, 2017

Water Board Adopts $336 Million Budget for FY 2018 and Retains Current Water Rates

HONOLULU – The Honolulu Board of Water Supply (BWS) at its monthly meeting on May 22, approved the adoption of a $335.8 million budget for the coming fiscal year starting July 1, 2017.  The budget was based on current water rates which will remain unchanged for FY 2018.

BWS stated that revenues from existing rates will be sufficient to cover the cost of operating Oahu’s water system for the year ahead.  $191.5 million has been budgeted for operating expenditures and $144.3 million for capital improvement program (CIP) projects.

The approved Operating budget provides funds to manage and operate the island’s water system to ensure the safe and reliable delivery of water to Oahu consumers.  This includes monies to pay down outstanding debt on higher interest rate loans from the State Revolving Fund (SRF) which will allow us to use lower interest rate SRF loans; repair, maintain, and replace meters to ensure accurate meter readings and customer bills; and repave damaged roadways after main breaks.

For FY2018, BWS has ramped up the CIP budget with a 79% year over year increase to replace water mains to reduce water main breaks and repair and renovate water system facilities.

In addition, the CIP budget will fund research and development projects ($5.5 million) such as a study on what BWS would do if Halawa Shaft and Moanalua Wells are taken out of service due to contamination and an engineering study for hydro-electric generation and managed aquifer recharge for Nuuanu Reservoir Nos. 1 and 4.

CIP renewal and replacement projects ($85.4 million) include Pearl City Wells II, Makaha Shaft, Manoa Estates Water System Improvements, and the installation and replacement of water mains at various locations around the island, as well as design of projects to eventually replace water mains on Puiwa Road, Dowsett Avenue, and McArthur Street.

CIP capacity expansion projects ($21.8 million) will include purchasing land in Pacific Heights for a new booster pump and improvements to the Ewa Shaft Tunnel.

To promote agency transparency, the budget is posted on the Board of Water Supply’s website at
www.boardofwatersupply.com.  Here is the link to the 2018 Budget: http://www.boardofwatersupply.com/bws/media/files/FY18Budget.pdf

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Contact:

Kathleen Elliott-Pahinui
Information Officer
Honolulu Board of Water Supply
Phone: (808) 748-5319