by Council Staff | Jul 7, 2022 | Add Council Logo, Council News, Press Release
July 7, 2022
PRESS RELEASE
Contact:
Parker Gavigan, Director of Communications
pgavigan@providenceri.gov
City Council Authorizes Pension Obligation Bond to Move Forward
and Welcomes Governor Dan McKee to the Chamber
Providence, RI – Tonight, Councilors approved a resolution on a vote of 11 to 1 authorizing the city to finance a contribution toward Providence’s unfunded pension liability. After receiving voter approval during a special election in June, General Assembly approval, and Governor McKee’s signature, the mayor’s administration can now move forward and engage in the process of issuing pension obligation bonds of up to $515 million to fix the city’s troubled pension system (Employee Retirement System). Certain financial guardrails exist on the potential borrowing, including not exceeding an interest rate of 4.9%.
“The lengthy effort to get to this point was exhaustive but thorough and open,” said Council President John Igliozzi. “We all know the economy has changed in the last few months. Taxpayers should know if the climate is not right for the city to borrow these funds, then we wait for the appropriate time. The enabling legislation allows current and future city leaders to act on issuing pension obligation bonds for up to five years.”
Councilors welcomed Governor Dan McKee as a special guest to the City Council chamber. Vocal performances by Butch Tavares (a member of the local R&B, funk, and soul group “Tavares”) and local musician Tim Brooks honored our country’s July 4th Independence Day holiday.
Follow the Providence City Council social pages for pictures:
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by Council Staff | Jun 28, 2022 | Add Council Logo, Council News, Press Release
June 28, 2022
PRESS RELEASE
Contact:
Parker Gavigan, Director of Communications
pgavigan@providenceri.gov
Providence’s Charter Review Commission is expected to hear a proposal for a fully elected regional city school board. After gathering feedback from the public and elected officials, commissioners will be presented Tuesday with the following recommendations:
- non-partisan elections
- 5 regions (north, south, east, west, and central) represented
- each region would elect two school board members for a total of 10 members
- three four-year term limits for board members
*Presently, school board members are appointed by the mayor
“As chair of the Charter Review Commission, it is refreshing to hear new ideas that would strengthen our educational system,” said Council President John Igliozzi (Ward 7). “Parents and those active in our schools have expressed that they would like more neighborhood representation on our school board. We are listening. This proposal has the potential to alleviate some of those worries and make the board more accountable. I encourage the public to participate in this process.”
The proposal calls for five regions to be developed in consultation with Election Data Services, the same firm recently used by the city to update Providence’s Ward Boundaries.
The Charter Review Commission meets tonight, June 28, at 5:30 pm in room 305 at city hall.
by Council Staff | Jun 16, 2022 | Add Council Logo, Council News, Press Release
June 16, 2022
PRESS RELEASE
Contact:
Parker Gavigan, Director of Communications
pgavigan@providenceri.gov
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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by Council Staff | Jun 13, 2022 | Add Council Logo, Press Release
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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by Council Staff | Jun 8, 2022 | Add Council Logo, Council News, Press Release
June 8, 2022
PRESS RELEASE
Contact:
Parker Gavigan, Director of Communications
pgavigan@providenceri.gov
Budget lowers residential property tax rate, raises 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
Tonight, the Providence City Council Finance Committee voted to approve a $568 million FY 2023 city budget that lowers the residential property tax rate to help balance rising home values and the need to fund critical city services. The budget includes public safety funding for a new police academy, adding 50 trained officers to the Providence Police Department. Councilors also approved an increase to the elderly exemption, giving senior citizens a break on their property taxes while other costs of living are dramatically rising. The finance committee also calls for hiring a full-time qualified fire chief.
“Our families are faced with rising inflation costs, from groceries to gas. And while we all appreciate increased home values, it was important for the Council to crunch the numbers and lessen the tax burden on our single-family, multi-family, and elderly homeowners without sacrificing city services,” said Councilwoman and Finance Chair Jo-Ann Ryan. “This collaborative budget puts more police in our neighborhoods and funds diversion programs and social service agencies to help with mental and substance abuses. There is a need for a fire chief in a city the size of Providence. Rank and file firefighters who have not had a chief in 7 years deserve one, and so do our residents,” added Ryan.
“I want to thank Chairwoman Ryan and the Finance Committee for thoroughly vetting this budget. Reducing taxes from the mayor’s proposal, increasing the elderly exemption, and showing the city council is committed to developing the Superman building were important priorities,” said Council President John Igliozzi.
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
The 2023 City Budget will now be presented to the full city council for final approval.
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by Council Staff | Jun 7, 2022 | Add Council Logo, Council News, Press Release, Ward-7
“Thank you to all the Providence residents who took the time and voted in today’s special election. Your voice counts. I believe the city should issue a pension obligation bond to help mitigate our struggling pension system. The overwhelmingly affirmative vote today is one more step in the process, which if passed next by the General Assembly, will place the city on a path to predictably budget pension payments and not crowd out essential city services that residents depend on.”
