$568 million FY 2023 City Budget Approved by Council

Jun 13, 2022 | 0 comments

June 13, 2022

PRESS RELEASE

Contact:

Parker Gavigan, Director of Communications

pgavigan@providenceri.gov

The budget passes for the 1st time lowering the residential property tax rate, raising the elderly exemption for seniors, lowers business tangible tax, identifies funds for the Superman building, and calls for the hiring of a full-time fire chief

The Providence City Council, with President John Igliozzi presiding, voted to approve the $568 million FY 2023 city budget, one that lowers the residential property tax rate against rising home values and increases the elderly exemption, giving senior citizens a break on their property taxes during a time of rising inflation. The budget also calls for hiring a full-time qualified fire chief and includes public safety funding for a new police academy, adding 50 trained officers to the force. The FY 2023 budget was passed by the Council’s Finance Committee after a thorough vetting process, weeks of discussions, and testimony by city department heads. A second vote is expected on Thursday, June 16.

The Providence City Council, with President John Igliozzi presiding, voted to approve the $568 million FY 2023 city budget, one that lowers the residential property tax rate against rising home values and increases the elderly exemption, giving senior citizens a break on their property taxes during a time of rising inflation. The budget also calls for hiring a full-time qualified fire chief and includes public safety funding for a new police academy, adding 50 trained officers to the force. The FY 2023 budget was passed by the Council’s Finance Committee after a thorough vetting process, weeks of discussions, and testimony by city department heads. A second vote is expected on Thursday, June 16.

FY 2023 City Budget highlights:

  • Residential property tax rate decreased to $17.80 per $1,000 (a decrease from the mayor’s proposal of $18.50 and the current rate of $24.56) *On average residential property values increased by 46%, according to the city’s internal auditor. There are 32,124 residential homes in the city.
  • Commercial property tax rate decreased to $35.40 per $1,000, lower than the current rate of $36.70 (but an increase from the mayor’s proposal of $33.85) On average commercial property values increased by 15%, according to the city’s internal auditor. There are 5,246 commercial properties in the city.
  • Business tangible tax decreased to $53.40 per $1,000 (a decrease from the mayor’s proposal of $55.55 and the current rate of $55.80)
  • Elderly tax exemption increased to $600 from $511
  • Homestead exemption increased to 45% from the current 40% (matching the mayor’s proposal)
  • Deadline for personal tax exemptions is extended from March 15 to December 31 (social security disability, service disability, blind exemption, veteran exemption, indigent exemption)
  • Funded a new city police academy
  • $5 million has been identified for the development of the Superman building (111 Westminster Street, should the development receive approval by the General Assembly and City Council)
  • Provides funding for a full-time qualified fire chief hired at an annual salary of no more than $175,000
  • Repurposes approximately $4 million in ARPA funds for small businesses or capital infrastructure improvements in our neighborhoods

 

 

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