This evening I will introduce an ordinance that will help ensure the safety of pedestrians, student fundraisers, and panhandlers on our streets. All too often we see young people raising money for their sports teams or other organizations standing at busy intersections, and I’m always concerned for their safety.
Even with Rhode Island’s “Hands-Free Law,” distracted driving is still a problem in Providence and around the state. This proposed legislation is meant to protect individuals who are actively soliciting donations from a myriad of dangers; including being hit by vehicles, causing unintended accidents, and even death. On June 17, 2019, a panhandler was stabbed to death, and another was beaten and died from their injuries over a year ago at the off-ramp on Branch Avenue.
This ordinance is not the end, but it’s the beginning of a tough conversation of how we balance freedom of speech and personal safety. I don’t know the answers, but as a legislator, I know that I have a moral obligation to protect the lives of those that call Providence home.
I’m aware of the ACLU’s position and legal accomplishments in similar cases, and I’m hoping that we can work together to find solutions that don’t infringe on people’s rights, yet keeps them out of harms way.
Providence City Council Passes 2020 Budget Which Brings Back the Homestead Exemption
Providing Relief for Providence Homeowners
Tonight, the Providence City Council passed the Fiscal Year (FY) 2020 Budget at their regularly scheduled meeting. The budget ordinance was signed by Mayor Jorge O. Elorza immediately following tonight’s Council Meeting.
The FY 2020 budget includes a tax levy ordinance that brings back a homestead exemption (in addition to other exemptions like senior, widow, veteran, etc.) The levy is a flat tax rate of $24.56/per thousand along with a homestead exemption of 40%. Below is the formula to find your proposed tax rate:
(Assessed Property Value – 40%) x $24.56 ÷1,000 = FY2020 Property Tax Bill
“I again want to express my thanks to the Committee on Finance, the Council’s finance team, Council staff including the Clerk’s Department, the Internal Auditor’s department, and the Treasury Department for their hard work during this process,” stated Council President Sabina Matos. “With the budget in the rear view mirror, that work continues, and I know that we are ready for the challenges that lay ahead. I look forward to continuing working with Mayor Elorza and my Council Colleagues on the many issues that face our city, especially around education, housing, and pension reform.”
In addition to the homestead exemption, the City offers several other exemptions for residents to help provide tax relief where applicable. To register for these exemptions, you must contact and fill out the appropriate paperwork in the Tax Assessors Office. The Tax Assessor is located on the second floor of the Providence City Hall at 25 Dorrance Street in Providence.
Chairman of the Committee on Finance and Councilman John J. Igliozzi stated, “It’s important for our residents to know what is available to them to help mitigate their property tax burden. By bringing back the homestead exemption, we are putting everyone, regardless of where they live, on equal footing. I look forward to working with my colleagues in Committee and on the Council to move our City forward and to address the fiscal issues that we face head-on.”
Below is a complete list of exemptions, in addition to the Homestead Exemption, that residents may be eligible for:
Elderly Exemption: Any person 65 years of age before December 31 or any person 62 years of age before December 31 and receiving Social Security Retirement Benefits are eligible for this exemption. The maximum exemption is $27,181. One must live in their home to be eligible for this exemption.
Social Security Exemption: Any person Certified through Social Security Administration to be 100% disabled who owns and lives in their home are eligible for disability exemptions. The maximum exemption is $26,543.
Service Disability: Any person 100% service connected disabled certified by the Veterans Administration who owns and lives in their home are eligible for a service disability exemption. The exemption is $16,330.
Blind Exemption: Any person who is certified blind by his or her physician will be eligible for the blind exemption. One must live in their home to be eligible for this exemption. The maximum exemption is $48,989.
Veteran Exemption: Any person honorably discharged from a recognized conflict, widow of a veteran or gold star parent, POW, in accordance with R.I.G.L. 44-3-4) shall be eligible for a veteran exemption. There is no form for the Veterans’ Exemption. Applicants need only submit their DD214 (discharge form). The maximum exemption is $8,138.
Indigent Exemption: Rhode Island General Law 44-3-3 (16) states, any person deemed impoverished may request relief from taxes. To qualify for consideration, you must reside in the home for an entire calendar year. Provide the Assessor’s Office with any and all documents to substantiate your request. Come to City Hall for a further interview, if necessary.
“Many residents have told me that they were unaware that the City offers several different exemptions for homeowners,” stated Vice-Chairwoman of the Committee on Finance and Majority Leader Jo-Ann Ryan. “These exemptions are in place to help the most vulnerable among us, and it is important that we share these with our neighbors. As we move into the new fiscal year, I look forward to working to help keep our City in good fiscal shape. We have much work to do around pensions, spending, and education – but we are up to the challenge.”
The State of Rhode Island also offers property tax relief through their Form 1040H. The refund is calculated based on the amount by which property taxes (or rent) exceed a percentage of the household income. The maximum refund is $300. You must be at least 65 years of age or older, or disabled. You must have been domiciled in Rhode Island for the entire calendar year. Your household income must have been $300K or less. You must have lived in a household or rented a dwelling that was subject to property taxes. You must be current on property tax and rent payments due on your homestead for all prior years and on current installments. You can find the tax form at www.tax.ri.gov/taxforms/personal.php
In addition to the exemptions listed, residents have 90 days to appeal their current tax bill from the date the first payment is due. Residents may appeal their assessment if they feel that their home is overvalued (assessed value is more than the fair market value as of December 31 of last year); disproportionately assessed in comparison with other properties; classified incorrectly as residential, commercial industrial or open space, farm or forest; illegal tax partially or fully exempt; modified from its condition from the time of the last update or revaluation. To appeal tax bill residents can do so online by visiting the Tax Assessors website or by mail.
Tonight, the City Council approved an ordinance that would authorize the appropriation of funds to the Providence Housing Trust.
“This is an important and meaningful milestone for this Council,” stated Council President Sabina Matos. “As I assembled my leadership team, I did so with the knowledge that one of the first things we would tackle is creating a dedicated funding source for affordable housing and this is a step in that direction. I thank Majority Leader and Chairwoman Ryan, Mayor Elorza, and Sam Budway from the Providence Redevelopment Agency for helping bring this to fruition so quickly.”
Mayor Jorge O. Elorza stated, “Expanding access to safe and affordable housing has been a top priority for my Administration because it is a key element for creating stronger, more vibrant neighborhoods in Providence. We are in support of this appropriation of funds for a housing trust as it aligns with a comprehensive housing strategy we are developing to support those most vulnerable in our capital city. We remain committed to continuously exploring collaborative and creative approaches that can help us tackle the housing challenges that our residents feel in our communities.”
Majority Leader and Chairwoman of the Committee on Ordinance Jo-Ann Ryan added, “I am grateful to the members of our Committee who helped shepherd this important piece of legislation through. Housing is the cornerstone of our economy, and the housing shortage here in Providence is real. I believe that this Trust is a big step forward in our goal for more affordable housing in our city.”
The ordinance directs the City Tax Collector to transfer and deposit 10% of all funds collected annually by tax stabilization agreements from the current tax year going forward into the Affordable Housing Trust. The Trust will be managed by the Providence Redevelopment Agency, who will develop rules and regulations around the Trust’s implementation.
“This is the first step in creating a mechanism in which to help fund affordable housing in our city,” stated Councilman Luis A. Aponte. “The Trust creates a direct connection between large developments downtown and the ability to develop much-needed affordable housing in other parts of our city. It is an economic tax policy that will not only create new affordable housing units but will also work to preserve units we already have.”
Deputy Majority Leader Mary Kay Harris echoed Councilman Aponte’s remarks and added, “I have been working for years to help provide for families in need in our city, and the greatest need among them is a safe place to live. Every person deserves to live in dignity, and finding an affordable property for lower-income families is becoming increasingly difficult, and I believe this fund will help create and preserve the much-needed units to serve all those that need them.”
Providence City Council Votes to Pass the Fiscal Year 2020 Budget Which Includes a Homestead Exemption to Protect Homeowners
Tonight, the Providence City Council convened for a special meeting for first passage of the 2020 FY budget which will benefit all residents. The City Charter requires there to be two passages before the budget can be formally adopted, and the second and final passage will happen next week.
The FY 2020 budget includes a tax levy ordinance that brings back a homestead exemption (in addition to other exemptions like senior, widow, veteran, etc.) The levy is a flat tax rate of $24.56/per thousand along with a homestead exemption of 40%. Below is the formula to find your proposed tax rate:
(Assessed Property Value – 40%) x $24.56 ÷1,000 = FY2020 Property Tax Bill
The FY 2020 budget will provide the actuarially required contribution to the City’s pension fund; will include funding for quality of life services, increases funding for the Providence School Department, and ensures that the City will meet all of its financial obligations and maintain its bond ratings.
“I am very proud of the work the Council’s Committee on Finance has done on this budget and their thoughtful approach to helping protect our most vulnerable homeowners,” stated City Council President Sabina Matos (Ward 15). “I am also happy that we were able to reach an agreement with Mayor Elorza and his administration. Our goals are the same, we want the best for the City of Providence and by working together we can make real change. We have a lot of work to do to improve quality of life, public safety, and most importantly – to make effective change in our public school system. And I firmly believe that is only going to happen by working together, and although this process took time, we have made great strides and I look forward to working with the Mayor and his team.”
“I have been at the negotiation table numerous times,” stated Chairman of the Committee on Finance Councilman John J. Igliozzi (Ward 7). “This budget season is no different than others – our goal has always been to promote quality of life issues and to protect the tax payer. We worked very hard to help mitigate the tax increases that many of our residents were faced with after their revaluations, and I strongly believe that bringing back the homestead exemption will help nearly every resident. I want to thank my fellow members of the Committee on Finance, my colleagues on the Council who provided spirited discourse and engaged in the process, the Council’s finance team, the City’s Finance Director Larry Mancini, and Mayor Elorza for their efforts in creating a budget that serves all.”
The City Council leadership team continued to meet with Mayor Elorza and members of his team for further negotiations after the budget passed out of the Committee on Finance which resulted in adjustments to the FY 2020 budget. The budget still calls for certain austerity measures, but will provide increased funding for Arts, Culture, & Tourism, reinstates funding for a Providence Fire Chief, and other minor adjustments.
Budget Initiatives Include:
Fully funded the school department, and added an additional $1.5M to their budget to address immediate needs.
Created a flat tax rate and provides homeowner tax relief by bringing back the homestead exemption.
Removed all non-obligated pay raises.
Removed all proposed non-obligated new jobs.
Level funded almost all programs and departments.
Increased funding for summer job programming by $1M, which puts our city’s youth to work to gain experience and provides pathways for future employment.
Converted ten temporary assistant recreation director positions into full-time ones, in order to provide the wrap-around services that our students need to succeed.
Froze the commercial and tangible tax rates, providing business owners with the certainty they need to prosper.
Vice-Chairwoman of the Committee on Finance and Council Majority Leader Jo-Ann Ryan (Ward 5) stated, “The City Council Leadership team has worked very hard to mitigate the adverse effects of the property revaluation that occurred earlier this year, and I am proud to have been part of the solution. I want to thank the hardworking members of the Council’s Committee on Finance and the Council’s finance team for helping craft a budget that is fiscally responsible, ensures the city is meeting its financial obligations, and provides for services that are important to a vibrant and culturally diverse city like Providence.”
The City Council will hold a special meeting on Tuesday, July 9, 2019 for the second and final passage of the FY 2020 budget.
Budget Breakdown
Revenue Increases
$55,000.00 in additional dumpster fees
$250,000.00 in additional overnight parking permitting fees
$200,000.00 in Providence Place Mall PILOT payment
Total: $505,000.00
Spending Increases
$82,500.00 for Chief Financial Officer (Mayor’s Office)
$532,617.00 to make 10 temporary Assistant Recreation Directors permanent positions to provide wrap-around services that our students desperately need
$35,772.00 for an additional clerk in the Municipal Court
$3,705.00 for maintenance contracts in the City Clerk Departments
Total: $654,594.00
Spending Decreases
$25,000.00 removed for non-contractual pay increases in the Law Department
$82,500.00 was transferred to the Mayor’s office in support of the chief financial officer position, so the funds were removed from the Finance Department
$17,258.00 removed for the non-contractual pay increases for the city collector, deputy city collector, and assistant city collector
$5,250.00 removed the non-contractual pay increase to the deputy assessor
$171,586.00 removed the non-contractual increases to union and non-union members in the IT Department
$400,000.00 removed funding for nine police officers that could not be hired due to lack of a Police Academy in FY2020
$101,467.00 removed salary of director and new workforce development associate (both vacant)
$291,000.00 decrease in seasonal salaries as a result of hiring one full-time recreation center director
$8,200.00 removed the non-contractual increase to the director in the Human Relations Commission
$2,758.00 removed the non-contractual pay increase for the deputy director in Arts Culture and Tourism
$29,530.00 removed non-contractual increases in salaries in the City Council
$50,847.00 removed salary of the stenographic reporter (vacant)
$16,835.00 funded only 9-months of auditor school
Salary Review Commission Decreases
$20,016.00 removed due to not being approved by the Salary Review Commission (Finance Director)
$39,284.00 removed due to not being approved by the Salary Review Commission (Commissioner of Public Safety)
Operational and Technical Decreases
$200,000.00 removed from the police department for a training facility, and travel/training expenses
$100,000.00 removed from the fire department for training academy (not planned)
$225,000.00 was removed to keep advertisements, rentals, and contractual services level funded for the Arts Culture and Tourism department.
$75,000.00 was removed to keep level funding for consultants in the Planning Department (last year they only spent $65K or $200K on consultants)
$160,000.00 was removed to keep building repairs level funded in the Public Property Department
$17,500.00 was removed to keep training and miscellaneous materials level funded in the City Council
$60,000.00 decreased in miscellaneous expenses in the City Archives
$94,500.00 transferred expenses for five Speed Alert Radar Messages to the master lease
$80,016.00 transferred expenses for FATS Simulator to the master lease
$84,489.00 will be removed due to payroll tax associated with the salary decreases
The Providence City Council Committee on Finance Saturday voted to send a reduced FY2020 city budget of $770M for vote and passage to the full Council.
A majority of the Council’s Committee on Finance agreed to put forth a tax levy ordinance that brings back a homestead exemption (in addition to other exemptions like senior, widow, veteran, etc.) The Committee has proposed a flat tax rate of $24.56/per thousand along with a homestead exemption of 40%. Below is the formula to find your proposed tax rate:
(Assessed Property Value – 40%) x $24.56 ÷1,000 = FY2020 Property Tax Bill
The Committee on Finance felt it important to share with the community a breakdown of the changes they have made to the Mayor’s originally proposed budget:
Revenue Increases
$55,000.00 in additional dumpster fees
$250,000.00 in additional overnight parking permitting fees
$200,000.00 in Providence Place Mall PILOT payment
Total: $505,000.00
Spending Increases
$82,500.00 for Chief Financial Officer (Mayor’s Office)
$160,000.00 for four additional laborers in the highway division of the Department of Public Works
$532,617.00 to make 10 temporary Assistant Recreation Directors permanent positions to provide wrap-around services that our students desperately need
$35,772.00 for an additional clerk in the Municipal Court
$3,705.00 for maintenance contracts in the City Clerk Departments
Total: $814.594.00
Spending Decreases
$25,000.00 removed for non-contractual pay increases in the Law Department
$82,500.00 was transferred to the Mayor’s office in support of the chief financial officer position, so the funds were removed from the Finance Department
$7,609.00 removed for the non-contractual pay increase to the city controller
$17,258.00 removed for the non-contractual pay increases for the city collector, deputy city collector, and assistant city collector
$5,250.00 removed the non-contractual pay increase to the deputy assessor
$171,586.00 removed the non-contractual increases to union and non-union members in the IT Department
$400,000.00 removed funding for nine police officers that could not be hired due to lack of a Police Academy in FY2020
$279,348.00 removed from the fire chief salary and DAC salary (positions are vacant)
$101,467.00 removed salary of director and new workforce development associate (both vacant)
$74,201.00 removed new assistant chief engineer position
$291,000.00 decrease in seasonal salaries as a result of hiring ten full-time assistant recreation center director
$8,200.00 removed the non-contractual increase to the director in the Human Relations Commission
$2,758.00 removed the non-contractual pay increase for the deputy director in Arts Culture and Tourism
$29,530.00 removed non-contractual increases in salaries in the City Council
$50,847.00 removed salary of a stenographic reporter (vacant)
$16,835.00 funded only 9-months of auditor school
Salary Review Commission Decreases
$20,016.00 removed due to not being approved by the Salary Review Commission (Finance Director)
$39,284.00 removed due to not being approved by the Salary Review Commission (Commissioner of Public Safety)
Operational and Technical Decreases
$200,000.00 removed from the police department for training facility, and travel/training expenses
$100,000.00 removed from the fire department for training academy (not planned)
$450,000.00 was removed to keep advertisements, rentals, and contractual services level funded for the Arts Culture and Tourism department (they are funded at $895K in FY2020 up by $10K from FY2019)
$75,000 was removed to keep level funding for consultants in the Planning Department (last year they only spent $65K or $200K on consultants)
$160,000.00 was removed to keep building repairs level funded in the Public Property Department ($500K still available, plus an additional $250K for schools)
$17,500.00 was removed to keep training and miscellaneous materials level funded in the City Council
$60,000.00 decreased in miscellaneous expenses in the City Archives
$94,5000.00 transferred expenses for five Speed Alert Radar Messages to the master lease
$80,016.00 transferred expenses for FATS Simulator to the master lease
$84,489.00 will be removed due to payroll tax associated with the salary decreases
$415,775.00 will be removed from the budget due to attrition (in FY2019 there was over $1M in vacancies in the budget)
Total: -$3,534,440.00
The City Council will hold special meetings on Wednesday, July 3, 2019, at 4:30 PM, where the budget will receive its first passage from the Council. Once passed, the second and final vote will take place on Tuesday, July 9, 2019 at a time to be determined.
