PROVIDENCE – The City Council on Monday unanimously approved the revised fiscal 2026 budget plan which proposes a tax levy increase of 5.85%.
The $624 million tax and spending plan requires a second reading, which is scheduled for July 14, before being sent to Mayor Brett P. Smiley for his signature.
The budget approval process typically is wrapped up by the start of the fiscal year – July 1 – but city officials had to delay the votes in order to receive approval from the legislature to exceed the annual 4% cap on tax levy increases.
The budget proposes a tax levy increase of 5.85%, which is a decrease from the 7.5% proposed by Smiley in April and below the maximum 8% authorized by the General Assembly.
In total, the budget includes a $401 million tax levy – up from the $379 million proposed in the 2025 budget – for the 2026 fiscal year that began July 1.
In the revised plan, non-owner-occupied properties with two to five units will experience the highest average increase at 6%. The average bills for single-family properties will increase by 4%, while commercial properties will see an average reduction of 2%.
The revised plan increases the tax levy by 5.85% over the previous year, retains the sustainability policy associate position that had been cut from the mayor's proposed budget, and eliminates both the proposed position for nightlife manager and funding for the purchase of noise cameras.
Some council members have faulted the previous administration of former Mayor Jorge O. Elorza for failing to increase taxes for several years, leading to a projected budget gap of more than $10 million in the current fiscal year.
“We were handed this disaster," said council member James Taylor.
Christopher Allen is a staff writer for PBN and can be reached at Allen@PBN.com.