Tonight, the City Council’s Committee on Finance adopted a new Compensation and Classification (Comp & Class) portion of the Fiscal Year (FY) ’21 Budget. The Council previously passed the tax levy keeping property taxes level and ensured no tax increase for residents. The Mayor’s Comp & Class budget, as submitted, called for the filling of vacant positions at a cost to the City’s taxpayers of just over $4 Million, and with revenues from speed cameras, school speed cameras, parking meters, hotel occupancy taxes, and food and beverage taxes all at record lows and have not yet received the City’s full Thirty-Two Million dollar pilot payment from the State (a payment from the State the City in lieu of taxes for state-owned properties), the Committee felt compelled to ensure the safety of the current workforce by removing these budgeted positions. The third and final portion of the FY ’21 budget, the appropriations portion, will not be taken up until the State passes its Budget.
“The fiscal forecast for the City of Providence is in peril,” stated Chairman on the Committee on Finance, Councilman John J. Igliozzi, Esq. (Ward 7). “As the legislative body, we have a fiduciary responsibility to the taxpayers of Providence to work in their best interest. By removing the Mayor’s request for an additional $4 Million in vacant and open funded positions it cuts the spending portion of our Budget, ensures our capacity to continue to keep our current workforce stable, and will help the City from falling off the fiscal cliff we are on. I have been a part of almost every City budget since I became a Councilman, and this is one of the gravest positions I have ever seen the City in financially.”
The Mayor’s requested positions can be revisited once the Council and the Committee on Finance have a better understanding of the state’s pilot payment notice. The City also had to make a significant investment in retrofitting offices and ensuring its workforce’s safety during this global pandemic and are waiting to learn what will be reimbursed from the state or federal agencies.
“We have a duty to protect our tax dollars for the residents of Providence,” stated Vice-Chairwoman of the Committee on Finance and Majority Leader Jo-Ann Ryan (Ward 5). “Had our fiscal outlook remained the same as it did in January, we would not be in this position. Since mid-March we have lost valuable revenues from hotel occupancy taxes, our food and beverage taxes, and state aid are significantly down which are critical to the City. However, like all cities, we are facing three crises at once an economic crisis, a global pandemic, and social unrest. $4 Million savings in vacant and open funded positions and raises is an opportunity to reduce our spending while preserving our current workforce, which is essential to keeping our City running.”
Chairman Igliozzi continued, “I want to thank my Committee colleagues Vice-Chairwoman and Majority Leader Jo-Ann Ryan, Councilors Carmen Castillo (Ward 9), Helen Anthony (Ward 2), and James Taylor (Ward 8) for their hard work during this longer than normal budgeting process. I would also like to thank my colleagues, President Sabina Matos (Ward 15), President Pro Tempore Michael Correia (Ward 6), Senior Deputy Majority Leader Nicholas J. Narducci Jr. (Ward 4), and Deputy Majority Leader Mary Kay Harris (Ward 11) for their input and guidance as we navigate these uncertain times.”
To view the Compensation and Classes portion of the FY ’21 Budget click here: https://bit.ly/3nQ10qL
On Friday, October 2, 2020, City Council Deputy Majority Leader May Kay Harris was joined by Council President Pro Tempore Michael Correia and Councilwoman Carmen Castillo at Lockwood Plaza for a food distribution and census event.
Nearly 400 boxes of food were passed out to residents along with face masks and assistance with completing the 2020 Census.
All of these services are especially needed right now, as communities face economic hardships and the COVID-19 Pandemic, and as the 2020 Census comes to an end. The City Council has worked closely with community organizations, including The Elisha Project, the Rhode Island Census, and the Rhode Island Professional Latino Association to organize these events and pull together resources like food, face masks, and Census volunteers.
Along with Councilwoman Harris and her fellow Councilors, many community partners also pitched in to make this event happen. Stephanie Fortunado of Providence Arts, Culture + Tourism, Dr. Wayne Montague and Lori Richie of Winn Residentials, Property manager of Lockwood Jacklyn Gonzalez, Providence Police Lieutenant Barros and Helene Miller of Partnership for Providence Parks, all lent a helping hand.
The collaboration between these many community leaders and organizations is precisely what the City of Providence needs right now. Despite the troubling circumstances, when we all bring our skills, resources, and compassion to the table, we can make big things happen.
From feeding her community to making sure that every single Rhode Islander is counted in the 2020 Census, Councilwoman Mary Kay Harris remains a dedicated community leader. She continues to make strides in improving the quality of life and access to resources in her beloved neighborhood.
The City Council voted this evening to pass a change to the Code of Ordinances, giving authority to the Providence Redevelopment Agency (PRA) to borrow up to $20-Millon to capitalize the Providence Affordable Housing Trust Fund (Fund). The Council’s Committee on Ordinances, chaired by Majority Leader Jo-Ann Ryan (Ward 5), moved for full council approval of the amendment to the Code of Ordinances at their meeting on Tuesday, September 22, 2020.
“The City Council is making a historic and meaningful commitment to addressing the shortage of affordable housing,” stated Majority Leader Ryan. “The Fund was created by the City Council in 2019, in collaboration with its affordable housing partners, earmarking 10% of all TSA payments to provide the basis for the Fund. The $20 Million is anticipated to make up to 1,500 affordable homes possible in the next three years for Providence residents. The Fund is intended to provide critically needed gap financing to encourage the production, preservation, and protection of affordable housing. I want to thank Deputy Majority Leader Mary Kay Harris, my fellow committee members, our affordable housing partners, City finance teams, and Council colleagues past and present for their hard work on this important topic.”
“Affordable housing is a basic human right,” stated Deputy Majority Leader Mary Kay Harris (Ward 11). “I have been working on equity in housing for far too long, and this is the first major investment that I have seen made to address the issue in our City. I want to thank my Council colleagues for supporting this measure and their steadfast dedication to ensuring that we do all we can to address this pressing need. During the Fane Tower hearings, many residents spoke up and spoke loudly about the need for affordable housing, and I heard them. As we live through this pandemic, where so many are out of work, and where housing insecurity is coming into full focus, I am beyond proud that this body has acted and can take such a monumental step for our residents.”
The change to the Code of Ordinances approves the Providence Redevelopment Agency (PRA) to seek a bond of up to $20 Million to capitalize the Council’s Affordable Housing Trust Fund. The Fund, created in 2019, is an important City Council initiative that ensures that developers seeking tax relief are also investing in the City through their Tax Stabilization Agreements (TSAs). These agreements provide a structured tax phase-in for large scale development in the City and include specific clauses whereby the developer must invest into the Affordable Housing Trust Fund, the Parks and Recreation Trust Fund, and meet a host of other obligations. Ten percent of the TSA’s total estimated value must be deposited into The Fund, which is managed by the PRA.
City Council President Sabina Matos stated, “TSAs are an integral part of growing our City and our tax base. Yet, it is imperative that developers also invest in the community. When we created the Affordable Housing Trust Fund, we did so to ensure that our investors were putting skin in the game and that we were creating a dedicated funding stream to create much needed affordable housing units in Providence. By moving forward with this ordinance to allow capitalization of The Fund, we will be able to do just that. I want to thank Deputy Majority Leader Mary Kay Harris for her tenacity in shepherding this important legislation through the Council.”
The additional bond funding could allow for nearly 1,500 affordable housing units to be added to the City’s housing stock. The PRA will mandate that all rental units created through this program be rented at 80 percent or less than the area median income (AMI) and no more than 120 percent of the AMI for multi-family homes. This funding is intended to be used as gap dollars to help fulfill the needs of developers and our housing partners, like local Community Development Corporations, to achieve their goal of creating affordable housing units throughout Providence.
Executive Director Jennifer Hawkins of One Neighborhood Builders stated, “Housing stability is the greatest economic challenge our residents face. Now more than ever, we need to ensure families and residents, despite their income, have access to safe, quality housing they can afford. Affordable housing promotes neighborhood stability and enables families and residents to thrive.”
“We are excited to see the City taking such an important step to support the production of much-needed affordable housing in Providence,” said Carol Ventura, Executive Director of RIHousing. “Many funding programs are over-subscribed, leaving developers searching for additional funds to close the gap and move projects forward. This new funding stream will be critical to creating and preserving affordable homes, spurring economic activity and creating jobs.”
This change to the Code of Ordinances will dramatically impact the community and our ability as a City to ensure that affordable housing can be developed and that residents can live and work in Providence without being house burdened.
The Providence Tax Stabilization Investment Act creates a streamlined and transparent process to incentivize development and further grow Providence’s tax base
PROVIDENCE, RI (September 17, 2020)…Providence City Council President Sabina Matos (Ward 15), along with a majority of her Council Colleagues including President Pro Tem Michael Correia (Ward 6), Majority Leader Jo-Ann Ryan (Ward 5), Senior Deputy Majority Leader Nicholas J. Narducci Jr. (Ward 4), Deputy Majority Leader Mary Kay Harris (Ward 12), and Councilors Carmen Castillo (Ward 9), Councilman David Salvatore (Ward 14), Nirva LaFortune (Ward 3), Helen Anthony (Ward 2), Katherine Kerwin (Ward 12), Rachel Miller (Ward 13), James E. Taylor (Ward 8), Councilman Pedro Espinal (Ward 10) and John Goncalves (Ward 1) tonight introduced an ordinance entitled the Providence Tax Stabilization Investment Act.
The Providence Tax Stabilization Investment Act (The Act) would standardize the processes for all future Tax Stabilization Agreements (TSAs) in the City of Providence by increasing transparency, simplifying and streamlining the application process, and clearly defining the requirements that all developers must abide by should they wish to obtain a stabilization agreement with the City. The proposed legislation will create a tax stabilization system that not only protects our City’s financial interests but also incentivizes new development.
Council President Sabina Matos stated, “Over the past several years, my colleagues and I have grown increasingly frustrated with the existing TSA process as it has resulted in confusion for developers and Providence residents alike. This legislation sets clear expectations to developers from the get go and codifies them all in one section under our Code of Ordinances. By providing clear expectations and terms from the onset of an application for a tax stabilization agreement, the Council can better monitor and enforce the terms of the agreement that are meant to empower the communities that work and live in Providence. Furthermore, by streamlining this process developers will find it easier to move here, create more good-paying jobs, and grow our tax base.”
The Act is intended to balance economic development with responsible employment practices in order to increase the city’s tax base while revitalizing our existing communities. In order to advance this mission, it is vital that the city provide developers, entrepreneurs, and investors with a predictable TSA process which clearly defines both the procedure to obtain a TSA as well as the requirements that will be imposed should a property be granted such an agreement.
“I am very proud of the work we have done to create a crystal clear and reliable process that incentivizes development and defines community benefits,” stated City Councilor Rachel Miller. “When Providence forgoes tax dollars to support development, we should be able to trace the positive impact of that investment in our communities and to city residents. At the same time, developers should be able to rely on a predictable process. The Act is a tremendous step in both directions. The ordinance is the result of an intensive collaborative process between the Council, Council staff, the Solicitor’s Office, and the City’s Planning Department, and I look forward to a rigorous discussion of its merits with my colleagues and with city residents.”
About the Providence Tax Stabilization Investment Act:
The Act will tie the length of TSAs to the amount of investment being made in the City of Providence, and it will standardize the process by which TSAs are reviewed and approved. This includes citywide departmental review before reaching the Council, as well as a clearly defined list of documentation that a developer must provide at the outset of the application.
In addition to procedural changes, the proposed legislation condenses a number of existing requirements on TSAs into one section of the Providence Code of Ordinances to eliminate confusion. These requirements include the criteria all developers will be held to if they want a TSA, such as hiring Minority and Women Business Enterprises, paying prevailing wage during construction, and defining specific reporting timelines to ensure compliance. There are also specific designations for the taxes generated from stabilized properties, which includes 1% of all taxes for First Source, 10% for the Affordable Housing Trust Fund, and 7% for the Parks and Recreation Trust Fund. While these designations have been designated by ordinance in the past, the new legislation places them directly in the section of the Ordinances governing TSAs in order to eliminate any uncertainty regarding where TSA taxes must go.
Finally, the Act establishes a very specific notice and cure provision in order to increase the enforcement capabilities of the Council so that they can exercise greater control over compliance with all of the terms and conditions of each TSA.
As the Chairwoman of the Committee on Urban Redevelopment, Renewal and Planning, I would first like to apologize for the confusion caused by last night’s committee meeting. The purpose of the meeting was to discuss the proposed Council resolution opposing the Rhode Island Department of Transportation’s plans for a multi-hub bus system in Downtown Providence.
While the committee planned to hear from Rhode Island Department of Transportation representatives, concerned Council members and community members on the proposed multi-hub bus system, miscommunication regarding the nature of this meeting created an issue.
Last night’s meeting was not formally advertised as a public hearing. This means that the details of the meeting and its agenda were not circulated widely enough to ensure that any concerned community member would have the opportunity to share their thoughts with the committee. Moving forward, the URRP Committee will be working with the Clerk’s office to schedule a legitimate public hearing and advertise it as such.
Although there were many concerned community members ready to speak last night, I have no doubt that there are more residents out there who would also like to share their thoughts, and we owe it to them to provide that opportunity.
While the Providence City Council has no authority over this matter, as it is a State transit plan, our goal is to facilitate stakeholder discussions and act as a community liaison between transit riders and the Department of Transportation. I look forward to facilitating this important community discussion.
Mary Kay Harris
Deputy Majority Leader-Providence City Council
Chairwoman- Committee on Urban Redevelopment, Renewal and Planning
The Department of Public Works is classified as an essential city department and for good reason. The hard work this department performs everyday to keep our streets and sidewalks in good shape, keep trash off of our streets, and our environment safe is vital to the operation of a healthy and prosperous city.
However, this summer we’ve experienced a rampant decline in the quality and frequency of these services due to DPW workers being put on furlough one and two days a week. This decline is of no fault of our hardworking men and women in the DPW, but of the circumstances we are facing due to the above mentioned furloughs.
While we understand that the city must find cost-saving measures to preserve the short-term financial stability of the city, we do not think those savings should come at the price of allowing our city to decline into a hazardous eyesore. Graffiti, illegal dumping, rat infestations have become a serious threat this summer to our residents’ quality of life.
Not only are these issues dangerous to our individual and collective health, but they also affect the community’s self-esteem and pride in their neighborhoods and invite further vandalism and destruction.
This is why we, the undersigned, are requesting that the administration end furlough days for workers in the City’s Department of Public Workers and that we wrap our arms around these exponentially growing issues before they get too out of control. We ask that you join us in asking the administration to bring back our essential workers in the DPW by signing the below petition so that we can restore these necessary services in our community.
