East Providence council conducts broad review of proposed Fiscal Year 2017-18 Budget

First workshop of financial season took place earlier this week

By Mike Rego
Posted 9/25/17

EAST PROVIDENCE — The City Council held its initial, full-throated workshop Monday evening, Sept. 25, on the proposed Fiscal Year 2017-18 penned by the administration of City Manager Tim Chapman, …

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East Providence council conducts broad review of proposed Fiscal Year 2017-18 Budget

First workshop of financial season took place earlier this week

Posted

EAST PROVIDENCE — The City Council held its initial, full-throated workshop Monday evening, Sept. 25, on the proposed Fiscal Year 2017-18 penned by the administration of City Manager Tim Chapman, taking a broad review of the document though offering up no changes to it at the moment.

Mr. Chapman’s proposal comes in at just over $181 million for the next fiscal year starting on November 1. It includes an anticipated 2.16 percent tax increase. The budget has some $5 million added over the previous year. The city side’s operating budget is projected to be slightly more than $75 million with the school’s at approximately $82.5 million.

Mr. Chapman explained most of the additional expenditures specifically related to the city, nearly $2.2 million, are earmarked for increase police and fire retirement payments, something the manager termed “corrections” for past funding inadequacies, purchasing workmen’s compensation insurance and salary increases related to new contract negotiations with the five municipal employee unions.

Mr. Chapman has pegged a total of $668,709 to the police retirement fund and $524,991 to the same line item for the fire department. To provide the city with workmen’s comp coverage, the up-front premium is $596,613, a move the manager said would save the city money and expedite the process. And $385,915 is included in anticipated costs related to contract negotiations.

On other public safety related items, the manager noted his budget would approve adding a pair of officers to the police department and though while next year’s hiring would be flat for the fire department a new class of probationary firefighters, the hiring of whom was approved in the current FY16-17 budget, are close to being activated. Mr. Chapman also stressed it was crucial the city maintain responsible numbers of public safety personnel as a way of avoiding exorbitant overtime costs.

“If we don’t keep up with public safety positions it will increase overtime. I know you hear it all the time, but the figures have been born out…I’m quite satisfied (Police Chief Chris Parella and Fire Chief Oscar Elmasian) are giving me accurate figures,” the manager said, adding the city’s financial team concurs with his perspective on the matter.

Late in the meeting, Mr. Chapman said based on consultation with Tax Assessor Steve Hazard, an owner of a property valued at $200,000 would see their bill increased by some $89 over the course of the next fiscal year if the 2.16 increase is approved. And if revenues reach anticipated levels, that figure would be reduced to around $40.

Like the city side, the year-to-year increase in the school’s budget, about $3.1 million, is also due mainly to contract renegotiations with the district's four bargaining units.

State-appointed Municipal Finance Advisor Paul Luba backed Mr. Chapman’s plan to increase school funding by $600,000 with another $200,000 for capital improvements. Superintendent Kathryn Crowley has proposed a budget seeking $1.1 million more from the city, though she previously expressed her satisfaction with the $600,000 figure for operations. Mr. Luba said if the council were to meet the superintendent’s initial request, adding $500,000 would mean Mr. Chapman’s proposed tax rate must be increased by another .7 percent.

Of the manager’s planned school funding contribution, Mr. Luba said, “I think it’s a reasonable addition to the school’s budget…A lot of work was put into (the school budget). Nothing jumps out at me as being out of whack.”

Much of the discussion Monday between members of the body and administrators was centered on potential areas for savings. At-Large member and Mayor Jim Briden did point out the average tax increase since the end of state oversight in 2013, even with this year’s proposed 2.16 percent, was .9 percent or below the 1 percent annual increase included in the Budget Commission’s five-year plan.

The next discussion of the FY17-18 Budget takes place during the Tuesday, Oct. 3, council meeting. Public comment on the proposed budget will be allowed and formal votes on any proposed changes to the document could be taken.

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Mike Rego

Mike Rego has worked at East Bay Newspapers since 2001, helping the company launch The Westport Shorelines. He soon after became a Sports Editor, spending the next 10-plus years in that role before taking over as editor of The East Providence Post in February of 2012. To contact Mike about The Post or to submit information, suggest story ideas or photo opportunities, etc. in East Providence, email mrego@eastbaymediagroup.com.