by Billy Kepner | Jul 8, 2019 | Council News, Press Release, Ward-10, Ward-11, Ward-15, Ward-5
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.”
by Billy Kepner | Jul 3, 2019 | Council News, Press Release, Uncategorized, Ward-15, Ward-5, Ward-7
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
Total: -$2,358,036.00
by Billy Kepner | Jul 1, 2019 | Council News, Press Release
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.
by Billy Kepner | Jun 29, 2019 | Council News, Press Release, Ward-15, Ward-5, Ward-7
Providence City Council Committee on Finance Sends
Fiscal Year 2020 Budget to the Council for Vote
The Providence City Council Committee on Finance today voted to send a reduced FY2020 city budget of $770M for vote and passage to the full Council.
The budget calls for certain austerity measures, but the Committee made sure to fully fund the School Department, and also added an additional $1.5M to their budget so that they have the necessary tools to immediately address ongoing issues. This Council and Committee are committed to working with the school department and the Rhode Island Department of Education to help address the many issues that were recently outlined in the Johns Hopkins report.
The budget also calls for a flat property tax rate of $24.56/per thousand of assessed value and brings back a homestead exemption of 40%, and keeps all other exemptions in place (veterans, senior, widow, etc.). The 2020 budget will provide the actuarially required contribution to the City’s pension fund; will include funding for quality of life services, calls for flat funding for most departments and programming, and includes austerity reductions in few departments -including $125K worth of reductions to the City Council’s budget. All to mitigate the tax increase that the Mayor had requested on the backs of economically challenged homeowners.
“Many of our neighbors saw huge increases in their property values, some as much as 20, 30 and even 50%,” stated City Council President Sabina Matos (Ward 15). “As our team evaluated the Mayor’s budget, we did so with the goal of reducing the burden on our most disadvantaged communities, many of which got hit hardest by the revaluation process. I believe that this budget does that, and also continues to provide for the essential services and investments necessary to address ongoing quality of life issues. I want to extend my gratitude to the Committee on Finance, guided by Chairman Igliozzi, for their hard work and long hours.”
“One of the greatest obligations that this body has is to vet and pass a budget which is fair to residents, ensures that the city is meeting its fiscal obligations, and helping to move our city forward,” stated Chairman of the Committee on Finance Councilman John J. Igliozzi (Ward 7). “Every year, the Committee on Finance is tasked with reviewing and vetting the budget to make sure that it serves the constituents of our city and not of special interests. We worked very hard to help mitigate the skyrocketing tax burden that many of our residents were faced with after their revaluations, and I believe that the Council’s finance team was able to achieve that end. We will continue to meet with all departments year-round in Committee to hold them accountable, and to address any fiscal challenges this austerity budget may cause.”
Council-led budget initiatives include:
- Per the Mayor’s request, 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.
- Per the Mayor’s request, increased funding for Providence Talks by $175K.
- Removed all proposed non-obligated pay increases.
- Removed all proposed non-obligated new jobs.
- Level funded almost all programs and departments.
- Added four new laborers and two additional rodent control positions in the Department of Public Works to improve quality of life for city residents.
- Per the Mayor’s request, increased funding for summer job programming, which puts our city’s youth to work to gain experience and provides pathways for future employment.
- Converted ten temporary assistant recreation director positions to full-time, to help provide the wrap-around services that our students need to succeed.
- Per the Mayor’s request, froze the commercial and tangible tax rates, providing business owners with the certainty they need to prosper.
Chairwoman of the Committee on Finance and Council Majority Leader Jo-Ann Ryan (Ward 5) stated, “The budgeting process is never easy, and each member of the Committee is to be commended for their dedication to that process. My goal has always been to have a fiscally responsible budget that ensures that the city is meeting its financial obligations, provides relief for taxpayers, and includes support for the many programs that enhance the quality of life for the residents of Providence. I am most pleased that we can fund our after-school programming, especially in our recreation department, which is paramount to setting up the students in our care for success. Converting these temporary positions to full-time assistant directors will help provide much needed wrap-around care that our students so desperately need.”
The City Council will tentatively hold special meetings on Wednesday, July 3, 2019, where the budget will receive its first passage from the Council. Once passed, the second and final vote will take place on Friday, July 5, 2019.
The Council’s Committee on Finance is comprised of:
Councilman John J. Igliozzi, Chair
Majority Leader Jo-Ann Ryan, Vice-Chair
Councilwoman Carmen Castillo
Councilwoman Helen Anthony
Councilman James E. Taylor
by Billy Kepner | Jun 25, 2019 | Council News, Press Release, Ward-15, Ward-5, Ward-7
The City Council leadership team would like to thank our sponsors in both the House and Senate for their support of the Council’s progressive tax plan. Tonight, the Rhode Island Senate voted in favor of the Council’s proposed tax plan, while the House of Representatives requested more time and review. The Council is committed to this tax plan and will provide any additional information as requested.
Council President Sabina Matos stated: “I am grateful for the support that we received in the General Assembly. Although we didn’t get the result we had hoped, we have laid the groundwork to continue the discussion on the best path forward in creating a progressive tax plan here in our capital city.”
“I want to thank the Senate leadership for their broad support of our plan that would provide tax relief to the most disadvantaged neighborhoods in our City,” stated Chairman of the Council’s Committee on Finance and Councilman John J. Igliozzi. “I would also like to thank the Speaker of the House, and the Representatives for their consideration of our bold plan. This is the first step in creating a truly progressive tax plan that benefits all residents and not just some.”
Less than seven weeks ago, Mayor Elorza introduced his budget which called for a significant increase in spending and also raised the property taxes of the most disadvantaged neighborhoods in Providence. While giving 1% of the City’s wealthiest property owners a tax break. It was the goal of the Council’s leadership team to mitigate that by utilizing a progressive tax plan.
City Council leadership is still committed to providing tax relief to the citizens of Providence, and will present a budget that will include a flat tax rate, and will incorporate a single homestead exemption for every resident of Providence. The majority of the Committee on Finance and the Council believe that bringing back the homestead exemption will help the most disadvantaged neighborhoods in Providence. Many of those neighborhoods saw 30, 40, and even 50% increases in their property revaluations, and this plan will work to protect those individuals.
“We have a fiscal obligation to ensure that we are being good stewards of our City’s finances,” stated Vice-Chairwoman of the Committee on Finance and City Council Majority Leader Jo-Ann Ryan. “The Committee will work to ensure that we pass a budget that is sound and begins to address our long term pension obligation. I thank Council President Matos and Chairman Igliozzi for their leadership, Senate and House sponsors and representatives for their consideration, and my colleagues for their tireless work to lessen the tax burden of our residents.”
It is the Committee’s goal to have the budget passed out of Committee as early as the end of this week, and then passed by the full Council the first week of July.
by Billy Kepner | Jun 25, 2019 | Council News, Press Release, Ward-15
The report released today by the Rhode Island Department of Education (RIDE) on the months-long deep dive completed by a research team from Johns Hopkins University is heartbreaking – not just for our students, but for our staff, faculty, and City. I am committed to working with Governor Raimondo, Commissioner Infante-Greene, Mayor Elorza, the Providence School Board, and our students, faculty, and staff to make a difference.
It won’t be easy, and we won’t see changes overnight, but this is a wake-up call. Our school system is failing our students and we need to act – not tomorrow – but today.
Sabina Matos, President, Providence City Council, Councilwoman – Ward 15
