by Billy Kepner | Jun 21, 2019 | Council News, Press Release, Ward-15, Ward-5, Ward-7
Rhode Island Senate Housing and Municipal Government Committee
Passes City Council’s Enabling Legislation to Enact a Homestead Exemption
Last night after more than three hours of testimony, the Rhode Island Senate Housing and Municipal Government Committee, Chaired by Senator Frank Lombardo, III, unanimously passed enabling legislation that would allow for the City Council to move forward with a homestead tax exemption.
In addition to the Senate’s Housing and Municipal Government Committee’s passage, the City Council voted 9-1 in support of the enabling legislation. Council President Sabina Matos, Councilman John Igliozzi, Councilman David Salvatore, Councilman Seth Yurdin, and Councilwoman Nirva LaFortune were at the State House for the Committee’s hearing and were absent from the Council meeting.
“Tonight was a victory for the residents of Providence,” stated City Council President Sabina Matos. “The Council received the Mayor’s proposed budget, calling for an additional $15M in spending, which included a tax proposal that my team felt was inequitable. We are willing and continue to work with the Mayor, but we needed to put into place a mechanism that gave us options, and that is what this enabling legislation does. We appreciate and thank the Committee for their support.”
The City Council leadership team last week introduced a tax proposal that would create an even playing field for all homeowners. The proposal calls for a flat tax rate of $24.56 per $1K of assessed value and would provide a homestead exemption of 40% up to $350K of assessed value, and then a 28% homestead on every $1K of assessed value after that.
The Chairman of the Council’s Committee on Finance and Councilman John J. Igliozzi, Esq. said, “As a body, we must work to protect the most vulnerable amongst us. The plan that we have put forward will provide a break to roughly 86% of owner-occupied properties in Providence. These homeowners are working two jobs to make ends meet; they are the retirees on a fixed income who are making decisions about paying their electric bill or filling a prescription; and they are the single parents trying to give their families a better life. A tax increase of even $200 can be devastating to those on tight budgets. While 7% of owner-occupied properties will see a slight increase in their tax rate over the Mayor’s plan, but will still pay less in property taxes than they did last year, and finally only 7% will likely see a raise in their tax bill over last year.”
The enabling legislation was sponsored in the Rhode Island Senate by Senators Frank Ciccone, Ana Quezada and Samuel Bell all of Providence. The legislation allows for the City Council to grant a homestead exemption to the owner-occupied residencies that may be a flat amount, a uniform rate, or a variable rate based on the value of a property. The Committee is chaired by Senator Frank Lombardo III, the Vice-Chairwoman is Senator Elizabeth A. Crowley, and the Committee’s Secretary is Senator Donna M. Nesselbush, and is comprised of the following members Senators Samuel W. Bell, Hanna M. Gallo, Roger A. Picard, and Gordon E. Rogers.
“Since a freshman Councilor I have worked alongside Chairman Igliozzi on the Council’s Committee on Finance, and we have always put the needs of Providence’s residents first,” stated Majority Leader and Vice-Chairwoman of the Committee on Finance Jo-Ann Ryan. “Providence is facing serious financial burdens, and we have many fiscal obligations that we must meet, but meeting them on the backs of the most disadvantaged neighborhoods is not good governance. We must address inefficiencies in our dealings as a City, and we also need to address the inequities in the Mayor’s tax proposal. I believe that our plan achieves that goal.”
The Council’s Committee on Finance will continue to meet to pass a budget that is fair and equitable for all residents of Providence. Chairman Igliozzi has asked his colleagues and members of the community to make suggestions on ways to amend the budget, and other ideas on how to bring the tax rate lower. The Council has no plans to dismantle any department but is looking at keeping some programs or departments level-funded.
Enabling legislation has also been introduced in the Rhode Island House of Representatives by Representatives Daniel McKiernan, Anastasia Williams, Joseph Almeida, Charlene Lima, and Mario Mendez. They are slated to hear this matter in the coming days.
by Billy Kepner | Jun 19, 2019 | Council News, Press Release, Ward-10, Ward-11, Ward-15, Ward-5
Tonight the Council’s Committee on Ordinance voted to recommend for approval an
ordinance which would authorize the appropriation of funds to the Providence Housing Trust. The ordinance will be sent to the full Council for vote and passage.
“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.”
The Council will take its vote on this
ordinance at the first meeting in July, scheduled for Monday, July 8.
All ordinances require two passes by the full Council before it is passed into law.
by Billy Kepner | Jun 19, 2019 | Council News, Press Release, Ward-15, Ward-5
The Committee on Ordinances has voted to send
legislation to the full Council that calls for the appointments of the Mayor to not exceed their term, which is presently four years. Upon its passage, this ordinance will apply to all directors not appointed during the present term.
“At the beginning of the term I sent a letter to the Mayor requesting that he submit each of his directors, officers, and committee members before the Council for approval,” stated City Council President Sabina Matos. “To this date, that has not happened. I feel strongly that the Council, especially with so many new members, get a chance to vet and consider each of these important positions.
The City Solicitor has issued an opinion in opposition, and the Council Leadership is questioning the veracity of that opinion and will be seeking outside counsel.
Majority Leader and Chairwoman on the Committee on Ordinances added, “For the administrative and legislative body to work collaboratively we need to have this level of checks and balances to ensure proper vetting of all directors, officers, and committee members. It’s clear to me that the Charter allows for this, and I don’t know why anyone charged with public service would stand in the way of open and transparent governance. I’m proud of the work we have done in Committee to bring this forward.”
Again, the Council will be seeking an outside legal opinion regarding this legislation. It is clearly outlined in
Article III, Section 302 (B) of the Home Rule Charter that all directors, officers, and committee members must not go beyond the term of the Mayor – which is defined in
Article II Section 202 of the Home Rule Charter as four years.
by Billy Kepner | Jun 19, 2019 | Council News, Press Release, Ward-15
It is often said that budgets are about priorities. Judging from Mayor Elorza’s proposed budget, it is clear where his priorities are. For weeks, the Providence City Council’s Committee on Finance has heard from department directors asking to fund new programs and initiatives in their FY2020 budget proposals on the backs of our city’s most vulnerable. We have heard it all, new jobs, salary increases for some of the City’s highest paid employees, a flashy tourism campaign and a 33% hike in funding for PVD Fest. The Mayor’s budget, representing a $15 million increase over last year’s, reads like a Christmas wish list to be funded by the expected windfall from our recent property revaluation process.
Speaking of the property revaluation, completed in March, homeowners in Providence’s most disadvantaged neighborhoods saw their property values increase 30, 40, even 50%. For many of our most vulnerable homeowners, the Mayor’s proposed tax plan will translate into property tax hikes of up to $1,000 or more. Meanwhile, owners of the city’s most expensive homes will get a tax cut under his plan; in some cases up to $10K or more.
Presented with a budget from a self-proclaimed “progressive” Mayor that raises taxes on the city’s poorest while giving the city’s wealthiest homeowners a tax break, the City Council felt obligated to find a way to help soften the blow to our working-class families.
The model we settled on is a progressive property tax model that gives all owner-occupied homes a 40% homestead exemption on the first $350 thousand of their property’s assessed value, and a 28% exemption on the amount that exceeds that. For example, a property valued at $400,000 would receive a 40% homestead exemption on the first $350 thousand and 28% exemption on the remaining $50 thousand (This $400,000 home would pay $98 less in taxes under the Council’s plan). Under this model, homeowners who would see their taxes go up under the Mayor’s plan, will still see an increase but it wouldn’t be as drastic. Meanwhile, homeowners who would see a savings will still see a savings, but it wouldn’t be as generous. Our proposal slightly redistributes the tax burden from the city’s working class, which makes up close to 99% of all city residents, to the city’s most affluent, or the top 1%.
Mayor Elorza claims that our plan unfairly targets one community and that it’s being forced through at the “eleventh hour.” This is simply not true. Perhaps, if the mayor introduced his budget in February, like Governor Raimondo, instead of in May the Council would be afforded more than just two months to vet, amend, and pass his budget.
Instead of pitting one community against another, perhaps the Mayor should explain to taxpayers why his proposed budget calls for a $15M increase to pay for festivals, salary raises, and other non-essential expenditures by raising taxes on the residents who can least afford it.
–Sabina Matos, City Council President
by Billy Kepner | Jun 18, 2019 | Council News, Press Release, Ward-15, Ward-6
Council President Pro Tempore Michael Correia (Ward 6), Council President Sabina Matos (Ward 15), and members of the Providence Police Department unveiled the latest equipment to enhance public safety at a press conference yesterday. The department is now equipped with 12 new radar guns and 3 new speed sleds and will be deployed throughout the City.
“Speeding is the biggest problem that our residents face, it creates a danger to pedestrians and especially our children but now local law enforcement can respond in the most effective way using this new technology,” stated Council President Pro Tempore Michael Correia. “Our neighborhoods are not a racetrack for motorists and we finally have the resources to combat reckless driving. These LIDAR radar guns will also reduce the number of Municipal Court dates because the accuracy and reliability of the measurements are firm. We want drivers to be more aware and to obey the laws of the road.”
Joining the Council President and the Council Pro Tempore were Major Michael Correia, Lt. Patrick Reddy, Representative Raymond Hull, and other officers from the Providence Police Department.
Council President Sabina Matos stated, “In Providence we aim to create an environment where families feel safe, which is why we have invested in traffic calming measures. My Council colleagues and I look forward to seeing how this new technology will improve the quality of life in our residential neighborhoods and promote cautious driving habits.”
Radar speed guns are hand-held devices that measure the speed of vehicles when pointed at them by detecting a change in frequency of the returned radar signal. A speed sled is a stationary device that uses a radar frequency to detect the speed of vehicles and logs the data for use in traffic studies. This bundle of new equipment cost $108K. Officers will undergo certification training in compliance with the National Highway Traffic and Safety Administration (NHTSA) guidelines before operating the speed measurement devices.
by Billy Kepner | Jun 13, 2019 | Council News, Press Release, Uncategorized, Ward-15, Ward-7
The City Council Leadership Team Announces Tax Levy to Benefit All Residents
In April of this year, Mayor Elorza presented to the City and the Council his 2020 budget which included a $15 Million increase from the last fiscal year. In his proposal and budget address, the Mayor failed to mention the severity of his tax levy increase and how it disproportionately burdens the City’s most vulnerable residents. Under his proposal, the City’s lowest-valued homes would see tax bills jump upwards of 20% while the City’s most valuable homes would see decreases in their tax bills.
As a Council, we find it unsettling to request a budget increase of $15 Million by asking our hardworking taxpayers to pay more. That’s why today, the City Council leadership team, introduced a tax levy proposal which includes a homestead exemption that more equitably distributes the burden of the costs of running our City across all of our residents.
“The plan that we are proposing would give a 40% exemption for the first $350K assessed value for homeowners, and then a 28% exemption on the assessed value after that,” stated Council President Sabina Matos. “This plan provides much-needed relief for those individuals who are on fixed incomes or are single parents and just trying to make ends meet. I think of people I know in our community, which with the revaluation saw massive increases in their assessed values. This plan would help mitigate that huge tax burden, and provide much-needed assistance to all residents in every neighborhood across Providence.”
Currently, our City is facing serious financial challenges like an unfunded billion dollar pension liability, skyrocketing infrastructure needs, and while the Council acknowledges these expenditures to be essential, we don’ t think they should be collected on the backs of our most vulnerable residents. We have been working through the budgeting process and feel that this plan helps to mitigate the imbalances in the Mayor’s proposal.
Chairman of the Committee on Finance, John J. Igliozzi stated, “There is not an endless source of money to keep our city running, and as one of the only cites in the state of Rhode Island that does not have a homestead exemption, it only makes sense that we explore this route.
As we move forward through this budgeting process, the Council hopes that we can come to an agreement with the Mayor and his administration that is equitable and fair for everyone.
Tax Graphic
