Two transit agencies involved in the construction or future operation and maintenance of the city’s nearly $10-billion rail line detailed Tuesday their budgetary goals for next fiscal year.

For the 2024 fiscal year that begins July 1, the Hono­lulu Authority for Rapid Transportation proposes an operating budget of $108.9 million, an increase of $14.4 million — or 15% — over its current adopted budget of $94.5 million. The increase, according to HART, is primarily due to debt service expenditures of $14 million — related to principal payments on outstanding general obligation bonds — which the agency says constitutes 95% of its operating budget.

During the current fiscal year, HART says it began making principal payments on those bonds to the city’s Department of Budget and Fiscal Services.

“Debt service plus fees is $103 million, that’s the main increase right there,” Lori Kahikina, the transit agency’s executive director and CEO, told Honolulu City Council’s Committee on Budget.

Meanwhile, the agency’s proposed capital budget totals $569.2 million, compared to $531.9 million in the current fiscal year. “And that’s going to cover two main projects: our City Center Guideway station project and the Waipahu Station Makai Entrance,” Kahikina said. “So that’s a 7% increase.”

In addition, HART states its main funding sources total $679.1 million. Those sources include $311.2 million in general excise tax revenue; $75.6 million in transient accommodations tax revenue; $250 million in federal funds; and $12 million in city subsidies, among other sources.

“We have other income from grants and miscellaneous income — rent — and that’s about $765,000,” Kahikina added.

Originally, the cash-strapped transit project sought construction of a 20.2-mile, 21-station route from East Kapolei to Ala Moana Center with a then- projected budget of nearly $13 billion. But in 2022, Mayor Rick Blangiardi announced a scaled-back version: an 18.75-mile, 19-station route costing $9.8 billion, which would end at a proposed City Center station on Halekauwila Street.

At the meeting, Council member Radiant Cordero, chair of the budget committee, asked about the status of the full funding grant agreement — the contract between HART and the Federal Transit Administration — which helps pay for the rail line and details the scope of the project’s work.

The FFGA, according to HART, is in the process of being amended to reflect the new, truncated scope of work that ends the line in Kakaako.

To that end, Kahikina said HART’s Deputy Executive Director Rick Keene has “sent several drafts to FTA.” She added, “the FFGA we’re anticipating to be done in the June-July time frame.” Once amended, Kahikina said HART would get a first allotment of $125 million in federal money. “The next (allotment) is $250 million, which is the award of that City Center Guideway contract. We’re anticipating that award maybe in the first quarter or second quarter of next year.”

The city’s Department of Transportation Services — which will take over operations and maintenance of the rail line — also addressed the Council.

For fiscal year 2024, DTS proposes an operating budget of $85.06 million for rail services. Of that, $73.4 million is for rail operations and maintenance programs, which will fund salaries, expenses and equipment associated with the rail system. In addition, $11.6 million is for rail administration and planning meant to fund salaries and expenses.

The city’s proposed budget will integrate rail into its existing public transit system. That includes integration of TheBus and other modes of transportation to allow passengers to get to and from rail stations.

“We are expanding our bus service with the opening of rail,” DTS Director Roger Morton said. “We do expect within just a few months now to begin operating our rail system.”

He added DTS’s proposed budget includes $54 million for Hitachi — which manufactures the system’s driverless trains — along with other expenses including security, third-party contracts for equipment maintenance as well as a “staff of rail professionals that are designed to keep our contractor honest and making sure that we are operating the type of serv­ice that we’re paying for.”

DTS’ operating budget also includes $5.75 million in expanded bus service hours to connect with rail stations, dedicated parking facilities, as well as pedestrian and bicycle connections.

Council member Augie Tulba questioned DTS about safety and security for the new rail line once it’s up and running.

Morton said DTS would have a “three-tiered approach to security” for rail. “Tier one is with our partner, Hitachi,” said Morton. “They have roving ambassadors who will be in stations and riding trains, and their function is basically customer service.”

Tier two would involve contract security.

“We will employ contracted security officers to be in the park-and-ride lots, be in the stations and be on the trains,” Morton said, adding in addition to guards a “very sophisticated” surveillance system at the agency’s transit operating center would monitor the rail line. “This is a state-of-the-art system,” he said, noting agencies from other transit systems have toured the facility to see this system. “Because it’s such an awesome system; it’s got AI built right into it.”

The Honolulu Police Department would comprise the third tier of security, Morton said.

“When there is an incident, HPD is tasked with responding to the incident,” he said. “There has been cross-agency training with all of the first responder agencies and DTS and our partners at Hitachi. I can’t emphasize how important that is to us: to keep the system safe … so that our residents are happy to ride it without fear.”