PROVIDENCE – Acknowledging the tight financial situation prompted by increasing expenses and limited liquidity amid the coronavirus crisis, Providence Mayor Jorge O. Elorza on Monday shared an array of measures designed to cut short-term costs while preparing for an uncertain financial future.
Among the announcements is the decision not to postpone the city’s fourth-quarter tax deadline of April 1, though taxpayers can submit payments through June 30 without penalties or added interest. The decision applies to all non-escrowed payments for current fourth-quarter taxes, including residential and commercial real estate, tangible personal property and motor vehicle taxes.
Cost-cutting measures included a hiring freeze on new city employees and “non-essential spending” like consultants and unfilled supply orders. The city is also exploring whether it will take on a line of credit to fill a gap in short-term cash flow, though the amount needed is still undetermined.
Essential services and spending, including salaries for city workers and ongoing payments into the city pension fund, will continue to be fully funded at this point and the mayor is on track to submit his proposed fiscal 2021 budget to the City Council at the end of April, Elorza said.
Elorza pledged to do “everything I can” to avoid furloughs or layoffs for city employees through the end of the fiscal year but admitted he could not rule out the possibility entirely. The city is also working to retrain employees whose original jobs are no longer being done – such as bus monitors – to other services such as food delivery for home-bound residents.
The city plans to move ahead with infrastructure improvements through its capital improvement plan wherever possible, having closed a $115 bond issue through the Providence Public Buildings Authority last week.
Other key updates include:
- Immediate closure of city playgrounds, basketball courts, soccer and baseball fields. Public parks will remain open though residents are reminded to practice social distancing.
- Encouraging still-open businesses with walk-in customers to provide hand sanitizer and wipes, with plans to mandate such supplies once there is no longer a shortage.
- Launch of a new city web page dedicated to coronavirus-related updates and information: pvdcovid19.com.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
