WARWICK – Mayor Scott Avedisian unveiled a fiscal 2018 budget Wednesday that represents a modest increase in spending over the current year, and is expected to result in an increased tax burden for property owners.
The $310.5 million budget proposal, including local, state and federal sources, represents a 3.9 percent increase in municipal spending, to $145.2 million, according to an overview.
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The budget includes $2.4 million for resolution of a lingering contract dispute between the city’s school system and its teachers’ union, which remains in negotiation.
Although department directors and division chiefs made reductions in their budgets, the spending plan for the fiscal year that begins July 1 includes a proposed tax rate increase of 46 cents.
This is an increase in the tax levy of 1.76 percent for Warwick, the state’s second-largest city.
The budget, as proposed, will require a residential property tax rate of $20.70 for each $1,000 of assessed value, and a commercial/industrial rate of $31.05 for each $1,000 of value. The tangible personal property tax rate is expected to be set at $41.40 for each $1,000 of value.
Residential property owners who have a house valued at the city median of $176,000 would pay $80.96 more in property taxes for the fiscal year, according to the city.
A commercial estimate was not immediately available.
In other tax related items, the budget plan leaves intact the $2,000 exemption for the motor vehicle tax, which is $1,500 more than the state requires.
Mary MacDonald is a staff writer for the PBN.
