June 16, 2022
PRESS RELEASE
Contact:
Parker Gavigan, Director of Communications
Council Approves $568 million City Budget, Laborers’ Local 1033 Contract, and Supports 30 Year Tax Agreement for Superman Building
FY 2023 budget lowers the residential property tax rate, raises 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
Providence, RI – The Providence City Council approved the $568 million FY 2023 city budget lowering the residential property tax rate against rising home values. The budget increases the elderly exemption, helping senior citizens with their property taxes during 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.
“I commend my council colleagues who voted to support the budget tonight and keep the business of city government moving forward,” said Council President John Igliozzi. “We lessened the tax burden on our single-family and multi-family homeowners and protected our most vulnerable, senior citizens. The tax levy and budget help fund the city’s entire operation, from our contract with the laborers to keeping our police and fire departments staffed and ready to maintain public safety.”
Rhode Island Laborers’ Local Union 1033
Councilors voted to approve a three-year contract with members of Public Employees’ Local Union 1033 of the Laborers’ International Union of North America. Details include an 8.25% pay increase from July 1, 2022 to June 30, 2025. Copays from employees for health and welfare benefits will increase 5% over three years.
Superman building Tax Stabilization Agreement
Councilors voted to approve a resolution supporting enabling legislation that would allow the City Council to consider a 30-year tax stabilization agreement for 111 Westminster Street, known as the Superman building.
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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