PROVIDENCE – Citing a need to prepare the city for a future beyond supplementing city services with one-time federal dollars, Mayor Brett P. Smiley on Tuesday unveiled his $585.8 million fiscal 2024 municipal budget proposal, a 3% increase over fiscal 2023.
The proposal increases residential property taxes to $18.70 per $1,000 of assessed value, a 90-cent increase, and cuts the levy on commercial properties by $1.30 per $1,000 of assessed value. Smiley also calls for an 11% cut in the owner-occupied tax exemption from 45% to 40%.
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“These changes keep us competitive with other communities and ensure that our city has a solid foundation for whatever may come,” Smiley said in his remarks Tuesday in City Hall chambers. “When I took office, I promised our residents a City Hall focused on providing excellent city services, investments that will improve their quality of life and a focused agenda that will ensure a stable economy for our future.”
Smiley said that after he took office he scrutinized “every facet of the city’s spending” and concluded that the current system “is not sustainable.”
“We are likely on the brink of a recession,” he said. “And relying on irresponsibly low tax rates will not prepare us for what’s ahead.”
In a statement earlier in the day, Chief Financial Officer Lawrence Mancini said despite the commercial reduction, the proposed levy would still be the highest of all Rhode Island municipalities. The average commercial property owner should see a $1,905 decrease in their annual tax bill.
Mancini said the tax changes will result in a roughly $14 million spike in collected property tax revenues.
The budget proposal factors in a 2.75% increase in municipal salaries; 4% for the fire department; and 1% for police. Additionally, the city would make 100% of its annual pension contribution through a $104.9 million payment.
As for the ongoing negotiations of payments in lieu of taxes between the city and its nonprofits, the budget level funds its assumption at $7.1 million, though the city expects a new agreement to happen before the beginning of the next fiscal year.
Smiley called the effort to address the PILOT payments “an issue of basic fairness.” The city is currently pursuing legislation to end tax exemptions from the purchase and leasing of buildings by nonprofits to for-profit entities, as well as increasing payroll tax payments to the city “so that instead of fighting their growth, we can benefit from it.”
“For the first time in 20 years, the city has the opportunity to redefine its relationship with these important stakeholders,” Smiley said. “This is a top priority of my administration.”
On education, the proposal assumes a level funding of the Providence Public School Department at $130 million, though the school department is likely to request an increase in its allocation from the city.
Smiley continued his theme of back-to-basics governing through marked improvements to city services, public safety and quality of life. For example, Smiley’s budget proposes $100,000 to shore up enforcement of noise ordinances through new equipment and staff training.
“We need to do a better job of respecting and enforcing our own sound rules,” he said. “This budget increases enforcement, technology and the training that our staff needs, and will hopefully finally provide relief to our neighborhoods.”
Among the other investment highlights are $300,000 in additional funding for the Department of Public Works Environmental Division for litter and trash removal efforts; $222,000 to support additional staff for graffiti removal and maintenance of public property; $193,000 for sidewalk maintenance; $175,000 for downtown public parks; and $100,000 to modernize the PVD311 software.
All told, the budget proposal calls for $212 million for public safety, a roughly $12 million increase over fiscal 2023. This includes $107.8 million for the police department and $91 million for the fire department.
The proposal includes an additional $1.9 million to fund both the current police academy and an additional academy slated for October for up to 80 new police officers and $3.1 million for two fire academies “to maintain adequate staffing levels and reduce callback expenses.”
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
Instead of increasing property taxes on those of us already paying, Brett should be taxing property owned by the so-called “non-profits” as he promised would do during his campaign.