East Providence City Council gives final approval to FY17-18 Budget

A residential tax increase of 1.48 percent is included

By Mike Rego
Posted 10/22/17

EAST PROVIDENCE — At a special session of the council held Friday evening, Oct. 20, the body unanimously gave its final approval to the city’s total Fiscal Year 2017-18 Budget of just over $180 …

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East Providence City Council gives final approval to FY17-18 Budget

A residential tax increase of 1.48 percent is included

Posted

EAST PROVIDENCE — At a special session of the council held Friday evening, Oct. 20, the body unanimously gave its final approval to the city’s total Fiscal Year 2017-18 Budget of just over $180 million.

The budget, which takes effect on November 1, includes a revised 1.48 percent residential real estate tax increase, down over a full percent from the rate hike proposed six weeks ago in City Manager Tim Chapman’s draft budget. The commercial increase for FY17-18 was also reduced to 1.49 percent as was that on tangible property to 1.5 percent.

There was one significant adjustment made by the council at the special public hearing held last week, which allowed for the accompanying reduction in tax rates and revenue needed to be raised. Mr. Chapman made the body aware the city and the owners of the Agawam Hunt Club had reached an agreement on the club’s outstanding tax debt to the tune of some $362,000. That money would be received in time to be included in the FY17-18 budget, commensurately dropping the amount of anticipated tax revenue necessary to run the city next year to approximately $108.2 million.

The council Friday also approved the procurement of Tax Anticipation Notes (TANs) and Revenue Anticipation Notes (RANs) over the next 12 months. These moves, of course, are required annually because the city’s fiscal year does not match that of the state.

The proposed tax rate for FY17-18 at the start of the budget season was decreased steadily during the deliberative process by both the council and the administration from an initial percentage of 2.49 to 2.16, then to 1.83 and finally after last week’s news 1.48. Some of that reduction came from the removal of interest payments for a $15 road bond referendum that was rejected by the council. Another aspect was the reduction of the city’s legal reserve fund. In total, nearly $1 million was trimmed from Mr. Chapman budget draft.

According to City Finance Director Malcolm Moore, the actual dollar figure for residential property owners will now increase by 33 cents year over year to $22.70 per $1,000. For a property valued at $200,000, he said that comes out to an average of an approximately $66 hike total per property.

Both Messrs. Moore and Chapman noted, however, the actual rate could be reduced even further by the time tax bills are issued in June of 2018. That’s because City Tax Assessor Steve Hazard is estimating potential increases in revenues of some $1-1.5 million over the next several months. If those revenues are realized, the admins said the predicted average raise in residential property owners’ bills could drop by as much as $20.