One of the definitions seperating a town from a city is incorporation.
An incorporated municipality has taxing authority and the ability to enter into contract for city services such as roads and utilities. This gives residents a greater ability to protect their towns uniques characteristics and for government to deliver services better tailored to local requirements.
Kailua with its clearly defined borders and a unique island heritage would, in any other state, have its own municipal government.
There are over four thousand incorporated municipalities in the US of 10,000 – 100,000 people.
The reason Hawaii residence don’t have this ability is further explored in this post: Read More>>>
Kailua or any other part of Oahu should have the ability to incorporate if it makes sense to the local citizens.
Anything that furthers local ingenuity and problem solving would be of benefit to everyone throughout Hawaii.