Households on Oʻahu will pay more in sewer fees over the next six years after the Honolulu City Council on Wednesday narrowly approved a measure seen as a compromise after months of debate over how to minimize the impact on consumers.

Half the households in Honolulu use around 6,000 gallons of water and pay $100 a month for sewer services, according to county estimates. That will rise to an estimated $160 by 2031, with changes starting on New Year’s Day 2026.

It’s the first increase of its kind since 2016 and falls short of the increase proposed by Mayor Rick Blangiardi administration – a 115% increase over the next 10 years, starting at a 10% hike.

In a 5-4 vote late Wednesday, the council approved a plan from the budget committee with lower increases over a shorter time period. Councilman Augie Tulba, who voted yes with reservations, said the increases “remain a heavy lift for many families.”

The measure now heads to Mayor Rick Blangiardi’s desk for his signature.

The city administration was very mindful of the cost of living challenges facing residents, spokesman Scott Humber said in an emailed statement. “We believe the version passed by the Council represents the best path forward for the Sewer Fund and Wastewater Program.”

Council member Andria Tupola voted against the bill, saying the rate increases would impose a heavy burden on struggling households in her district in West Oʻahu.

The other no votes were Council members Esther Kiaʻāina, Scott Nishimoto and Tommy Waters. Val Okimoto and Radiant Cordero voted yes with reservations. Dos Santos-Tam and Matt Weyer were the only two aye votes.

The approved payment schedule will split bills between a 40% base rate for sewage services and a 60% variable rate based on household water consumption.

That variable rate for water usage is meant to incentivize households to reduce their consumption. 

“We’ve all been talking about percentage rates, it’s a little hard to assess the percentage rate,” because of the variable water charges, budget committee Chair Tyler Dos Santos-Tam said during discussion. 

The final plan assumes yearly increases of 6%, 7.5%, 8.5% and 9%, 9% and 9%. An annual 3% increase would then kick in starting in 2033, Dos Santos-Tam said.

Households that use less than 6,000 gallons a month would see a reduction in their base rate charges for the first two years, he said. 

The package includes provisions for some financial assistance for qualifying families, although the city was still working on the final form, said Andy Kawano, the city budget director.

Council Chair Tommy Waters said during discussion that the current plan for a $20-a-month credit for lower-income households was just a “drop in the bucket.”

The city said the increases are required to meet a 2035 deadline for a federally mandated $2.5 billion upgrade to Oʻahu’s largest sewage plant on Sand Island, part of a $10.1 billion capital improvement program for the island’s 2,100 miles of sewer lines and 71 pump stations.

Council members called on the administration to engage with the U.S. Environmental Protection Agency to explore potential options that could help reduce rates for ratepayers, and Humber said the city will follow up on that request.

A five-year schedule of rate increases for water use only had already been approved by the Honolulu Board of Water Supply in November 2023, with the agency citing various factors including the Red Hill contamination crisis, escalating energy costs and inflationary pressure. 

In the end, the council had three versions of the sewer rate plan to consider; the version from the budget committee, another by Tupola, and Waters’ version that included a lower increase in water usage charges. 

The City Council meeting agenda was temporarily derailed earlier in the day when Kawano and
Council Vice Chair Weyer raised concerns over amendments to the final version of the city’s executive operating budget proposed by Waters in his draft updated just prior to the meeting. 

The amendments would have moved just over $19.1 million from the city general fund into its sewer fund, a move that Waters said would help “reduce the amount of money that people are paying for their sewer rates.”  

The fund was based on salary and other cuts from across city departments, using a percentage of their unspent funding from the 2024 fiscal year. In addition to a cash injection, Waters had previously proposed using revenue generated from the Oʻahu Tourism Impact Fee to support the upgrades. 

Called to comment Kawano said he was “confused and surprised” by the amendments in Water’s draft. “It doesn’t make sense to take funds out of departments to set aside into a fund for sewer activities.” 

He said the department wouldn’t use the funds if they were moved and that using cash from the city general fund would negatively impact the county’s ability to borrow.

Correction: The story has been corrected to clarify that the Bureau of Water Supply has no role in setting sewer rates. Sewer rates and water rates will be combined under the new billing formula.

Read the measure below: