Contracts: Navigating Honolulu's Wastewater Infrastructure Investments

·3 min read

The City and County of Honolulu faces significant increases in sewer fees over the next decade, driven by infrastructure upgrades and operational costs. This has implications for local businesses, contractors, and the overall economic landscape of Oahu.

A breathtaking aerial view of Honolulu's cityscape and beach coastline.
Photo by Jess Loiterton

Honolulu's Department of Environmental Services (ENV) is proposing to significantly increase sewer fees, presenting both challenges and opportunities for businesses and contractors in Hawaii. This plan, as reported by Spectrum News Staff will see fees more than double over the next ten years, starting July 1, 2025. These increases, which are the first since 2016, are earmarked to fund critical wastewater infrastructure improvements, meet regulatory demands, and safeguard public health and the environment according to Hawaii Free Press. The fee structure will initially increase by 9% annually for the first six years, followed by decreases in the following years.

This rise in fees stems from the need to fund extensive operations and upgrades within Honolulu's wastewater systems. The Department of Environmental Services emphasizes that its wastewater program is financially self-sufficient, relying solely on sewer fees without real property tax or other city revenues. The upgrades are extensive, including a recent $536 million overhaul of the Honouliuli Wastewater Treatment Plant, as detailed by Smart Water Magazine.

For local businesses, particularly those with high water usage like hotels and restaurants, these increased fees will translate to higher operational costs. This situation may necessitate adjustments in pricing strategies or investment in more water-efficient technologies, as business owners seek to mitigate the impact of the rising fees. The planned increases also suggest a continuous demand for contractors and service providers specializing in infrastructure and environmental remediation.

The situation poses an interesting test for Honolulu's environmental and sanitation sectors. With ongoing infrastructure demands, and the need to navigate the implications of climate change and aging infrastructure highlighted in a PowerPoint Presentation, the sewer system impacts both residents and entrepreneurs. The City and County of Honolulu’s ENV plays a vital role in providing employment and income within the local economy, and these factors are key for sustainable development.

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