The budget proposal modifies residential and commercial property tax rates, helps owner-occupied residents, and asks Mayor Smiley to negotiate strong PILOT agreements with tax-exempt institutions to enable significant investments in improving quality of life issues for residents

 Providence, RI – Tonight, Providence City Council President Rachel Miller provided members of the finance committee with recommended changes to the FY 2024 city budget in advance of a public hearing on Tuesday, June 13. The $586 million budget was presented by Mayor Brett Smiley in April.

“While the city has not raised taxes in eight years, home revaluations caused soaring tax bills for city homeowners, especially in less wealthy neighborhoods. A drastic tax increase during a time of overwhelming inflation would create a significant burden for some residents,” said President Miller (Ward 13). “The proposed budget, which will be introduced by the finance committee on Tuesday evening, achieves savings for residents without sacrificing core services.”

FY 2024 City Budget tax proposal from the City Council:            

Residential property tax rate increases to $18.35 per $1,000 (a decrease from the mayor’s proposal of $18.70 but an increase from the current rate of $17.80)

Commercial property tax decreases to $35.10 per $1,000 (an increase from the mayor’s proposal of $34.10 but a decrease from the current rate of $35.40)

 Homestead exemption decreases to 43% from the current 45% (increases from the mayor’s proposal of 40%) *Homestead exemption is a tax exemption for those residents living in their homes

FY 2024 Amended Budget highlights include:

• $4.1 million in tax savings achieved by the Council
• Hiring freeze for new non-essential jobs

(This is the result of a $7.1 million shortfall in PILOT payment in lieu of taxes funds from tax-exempt city hospitals and universities)

• $1.5 million allocated for neighborhood infrastructure projects (playgrounds, school buildings, and street safety improvements)
• Funding for a lateral Providence Fire academy and a second Providence Police academy to begin approximately in February

 The finance committee, joined by other members of the City Council, has been diligently reviewing proposed budgets over 10 meetings, totaling more than 20 hours, and asking detailed questions to city departments over the last six weeks. One public hearing was held on May 16 in the council chamber, allowing residents to weigh in on the process.  For the first time, a second public hearing is scheduled for next Tuesday, June 13, at 5:30 pm.

“The consistent message we’ve heard from Providence residents is that they cannot afford to pay more taxes and they expect more from the taxes they currently pay,” said Councilwoman Helen Anthony (Ward 2), Chair of the Finance Committee. “We worked with the mayor and his staff to make the necessary changes to pass a balanced budget, and we thank them for their work and continued commitment to delivering excellent service. We also appreciate and value the questions and suggestions we have received from the public, and welcome feedback on the council’s budget recommendations at our June 13th public hearing. Finally, I’d like to thank the dedicated members of the Finance Committee as well as all my fellow councilors for their deliberation over many hours these last few months.”

What’s next?

The amended redlined Sub-A ordinance will be posted by Monday, June 12.

Finance Committee holds a public hearing on Tuesday, June 13 at 5:30 pm at city hall.

Finance Committee votes on the amended budget (likely the week of June 12).

City Council must approve the amended budget twice to take effect.