City Council members yesterday said they hear the complaints of property owners stung by skyrocketing property values and are preparing to debate a variety of proposals to help ease the growing bills before the first installments come due in August.

Council budget chairwoman Ann Kobayashi said she will hold a special committee meeting Jan. 26 to begin poring over the various proposals, from those of Mayor Mufi Hannemann to those of her colleagues. Some would offer a break based on income, others would try to limit the relief to homeowners who have not sold in a certain number of years and another would cap the increases.

Honolulu property values climbed nearly 26 percent over last year, capping six years of growth that have nearly doubled assessed values and sent tax bills soaring.

The latest property tax relief proposal came yesterday from Councilman Charles Djou, who wants to see a Proposition 13-like proposal, which California used to limit the amount that property taxes may increase in any given year.

"I plan to introduce a bill that will limit the amount that property taxes may increase to no more than the greater of 10 percent per year or 1 1/2 times of inflation," Djou said.

Values are up broadly across O'ahu since last year, led by a nearly 44 percent average increase in the area from Ka'a'awa to Kahuku, and 38 percent on both the North Shore and in the area from Nanakuli to Makua.

That means property owners can expect higher tax bills — double and triple those of just five years ago — unless the city cuts the tax rate. The third year of double-digit increases has riled taxpayers who are calling City Hall and the council, writing letters to the editor and organizing protests.

Hannemann said yesterday he's not ready to recommend such a proposal because the city faces significant expenses for debt service, salaries and improving roads, sewers and other core services.

Hannemann has proposed what amounts to a one-time tax credit of $40 million designated for homeowners. He also said he would use part of the estimated $120 million more generated by higher tax bills to create a reserve fund to protect the city's financial health.

Council Chairman Donovan Dela Cruz said he thinks it's important to find ways to ease the crunch for working families. "We don't want to provide relief and tax breaks to investors," he said.

Hannemann said he is open to various proposals from the council and the community. But when he hears individual council members calling for tax relief, he asks them to show him where their districts could feel the cuts.

"I'd like to know specifically where to cut," Hannemann said. "We all have to feel a little pain."

Djou said taxpayers — hit with rising sewer fees, vehicle fees and property taxes — are fed up.

"I think the public has risen up and said enough is enough," he said.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.