Letter: Many questions on Warren’s financial decisions
Questions come to mind after the Warren Town Council’s March 20 budget meeting.
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Letter: Many questions on Warren’s financial decisions
To the editor:
Questions come to mind after the Warren Town Council’s March 20 budget meeting.
Why was Warren’s total municipal expenditures per capita for 2021 (non-education) $1,603, compared to Bristol ($1,180); Tiverton ($1,331); and North Smithfield ($1,519)?
Why was Warren’s municipal expenditures per capita (administration costs) for 2021* $288, compared to Bristol ($208); Tiverton ($170); and North Smithfield ($230)? I realize this expenditure data, while gathered from an official source (the “RI Public Expenditure Council: Municipal Finance-Non Education Services FY 2021”) is dated and may have changed.
Why would the Warren Town Council members of Bristol Warren Regional School District Joint Finance Committee approve a 2.7% increase in the Town’s shared cost to the School District and authorize up to $6 million in school building bonds on March 21 knowing the following:
- Warren is in debt $8 million for a legal settlement
- Warren has a built-in structural deficit of at least $1 million (Annual Settlement, use of fund balance)
- Warren has not yet settled its labor agreement with Town employees
- Warren had raised taxes close to the 4% State cap four years in a row: (FY21, 3.93% increase; FY22, 3.90 percent increase; FY23, 3.81 percent increase; FY24, 3.86%)
- Warren Town Officials on March 20 indicated they were still not fully aware of the Town’s financial condition
- Warren Town Officials have still not been presented with a finalized Annual Audit
- Warren Town Official were basing some Department head raises on “trust funds”, which diminish with drawdowns (a conservative estimate would place that fund at $218,000).
- Warren Town Officials most likely know the Town’s Unassigned Fund Balance is now below $140,000.00 (Having paid out $5 million in this year’s legal settlement).
And why would the Warren Town Council, at its April 9 budget meeting, determine it necessary to again raise the tax rate to 5.7%, perhaps prompting review by the Auditor General?
Why did the Warren Town Council (on April 9) approve the Preliminary Budget while agreeing to look into issuing “Judgement Bonds”, which will likely increase the debt service?
Thomas D. Gordon
Touisset Road
