The City Council yesterday advanced a budget that calls for a variety of fee increases, elimination of TheBoat commuter ferry and a property tax hike.

The budget bills provide for a $1.77 billion operating budget and a $1.68 billion construction budget that includes more than $900 million to begin building Honolulu's planned commuter rail project.

Lower visitor arrivals, declining real estate values and rising unemployment are taking a toll on the local economy. For the city, that translates into flattening revenues from property, fuel and hotel taxes coupled with rising costs for emergency services, fuel and debt.

Current efforts to balance city finances include increasing the residential real property tax rate from $3.29 to $3.59 per $1,000 of assessed value. The council is also proposing to increase the motor vehicle weight tax, bus fares, city golf course fees, Honolulu Zoo entrance and parking fees and other increases.

The council has until June 15 to act on the budget ordinances and set property tax rates for the next fiscal year, which runs from July 1, 2009, to June 30, 2010.

Honolulu resident Ted Kanemori yesterday testified against the tax and fee increases, which he estimated would cost him $210 a year more in property taxes alone.

"I'm retired and on a fixed income," Kanemori said. "Unexpected taxes that are levied on the public cause unexpected hardship and unexpected changes in our lifestyle.

"Please say no to real property tax increases."