by Billy Kepner | Oct 1, 2019 | Ward-15, Ward-5, Ward-7
Tonight the City Council’s Committee on Finance, Chaired by Majority Whip John J. Igliozzi, Esq. (Ward 7), invited Xaykham Kamsyvoravong, Chairman of the Board of Directors of the Providence Water Board to discuss municipal Asset Transfers as a potential tool to help address the City’s underfunded pension fund.
“Providence is not the only city in the State that is facing serious pension liabilities,” stated Finance Chairman John J. Igliozzi, Esq. “There are 17 other municipalities that have critically underfunded pension plans, and Providence is one of them. It is not only necessary but prudent that we explore all options on the table to mitigate our liabilities and obligations.”
Asset Transfers are a common practice by corporations to help support their unfunded pension liabilities. This practice moves the ownership of a non-cash asset from an entity to its pension fund, allowing the asset’s appraised value to offset unfunded pension liabilities.
Majority Leader Jo-Ann Ryan and Vice-Chairwoman of the Committee on Finance (Ward 5) said, “The City of Providence is facing serious long-term financial challenges, and we need to explore all avenues to address our unfunded pension fund. I want to thank Xaykham Kamsyvoravong for his scholarly paper from his time at Roger Williams Law School, his service to the City of Providence, and for joining us to begin an important discussion.”
Leader Ryan continued, “Clearly, asset transfers are not a silver bullet for state and local governments or pension funds, and there are many challenges that need to be addressed. It is hard to identify assets suitable for this funding mechanism and even more difficult to price and structure them fairly. More importantly, an asset transfer should only be one piece of a well thought out, efficient long-term plan that includes pension reforms. We will be looking for help from our State colleagues to determine if it should be part of our long-term plan. Bottom line – it is an accepted accounting treatment that can positively benefit our balance sheet. It doesn’t solve for the cash flow that is needed to address our financial challenges, but it may be part of the broader solution.”
“This is not a new concept, corporations have used Asset Transfers for decades to leverage the value of their assets,” stated City Council President Sabina Matos. “The Council is looking broadly at our pension obligations, and felt this idea is worthy of further discussion.”
In 2017 the state of New Jersey transferred the New Jersey Lottery to its pensions for a 30-year term, and it offset nearly $13.5 billion of unfunded pension liability. Other states like Connecticut and Illinois are currently exploring this process to mitigate their pension liability as well.
Council President Matos continued, “We have serious financial obligations facing this City – from our schools to infrastructure, to a ballooning pension. Nothing should be off the table, and every idea must be explored and vetted. Asset Transfers are just one area that my leadership team is exploring. This Council is not willing to shirk its duty, and we must be proactive. I applaud the Committee on Finance, and it’s Chairman John Igliozzi and Vice Chairwoman Jo-Ann Ryan for being so willing to explore these difficult scenarios.”
by Billy Kepner | Jul 19, 2019 | Council News, Press Release, Ward-11, Ward-15, Ward-4, Ward-5, Ward-6, Ward-7
Statement from City Council President Sabina Matos and the City Council Leadership Team Regarding the States’ Takeover of the Providence City School District:
In the aftermath of the Providence Public School District Community Forums and on the eve of a state takeover of our public school district, the City Council remains committed to playing a collaborative role in our children’s educational future.
We look forward to the opportunity to work in partnership with RIDE and to help foster solutions that will improve educational outcomes for our kids.
Despite the Mayor not being communicative or transparent with the Council in these preliminary stages of this process, we remain unwavering in our shared responsibilities to provide students with safer and cleaner school buildings, a more relevant and rigorous curriculum, and a quality of education that sets them up for success.
—
Council President Sabina Matos
Council President Pro Tempore Michael Correia
Majority Leader Jo-Ann Ryan
Senior Deputy Majority Leader Nicholas J. Narducci Jr.
Deputy Majority Leader Mary Kay Harris
Majority Whip John J. Igliozzi, Esq.
by Billy Kepner | Jul 9, 2019 | Council News, Press Release, Ward-15, Ward-5, Ward-7
Providence City Council Passes 2020 Budget Which Brings Back the Homestead Exemption
Providing Relief for Providence Homeowners
Tonight, the Providence City Council passed the Fiscal Year (FY) 2020 Budget at their regularly scheduled meeting. The budget ordinance was signed by Mayor Jorge O. Elorza immediately following tonight’s Council Meeting.
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
“I again want to express my thanks to the Committee on Finance, the Council’s finance team, Council staff including the Clerk’s Department, the Internal Auditor’s department, and the Treasury Department for their hard work during this process,” stated Council President Sabina Matos. “With the budget in the rear view mirror, that work continues, and I know that we are ready for the challenges that lay ahead. I look forward to continuing working with Mayor Elorza and my Council Colleagues on the many issues that face our city, especially around education, housing, and pension reform.”
In addition to the homestead exemption, the City offers several other exemptions for residents to help provide tax relief where applicable. To register for these exemptions, you must contact and fill out the appropriate paperwork in the Tax Assessors Office. The Tax Assessor is located on the second floor of the Providence City Hall at 25 Dorrance Street in Providence.
Chairman of the Committee on Finance and Councilman John J. Igliozzi stated, “It’s important for our residents to know what is available to them to help mitigate their property tax burden. By bringing back the homestead exemption, we are putting everyone, regardless of where they live, on equal footing. I look forward to working with my colleagues in Committee and on the Council to move our City forward and to address the fiscal issues that we face head-on.”
Below is a complete list of exemptions, in addition to the Homestead Exemption, that residents may be eligible for:
- Elderly Exemption: Any person 65 years of age before December 31 or any person 62 years of age before December 31 and receiving Social Security Retirement Benefits are eligible for this exemption. The maximum exemption is $27,181. One must live in their home to be eligible for this exemption.
- Social Security Exemption: Any person Certified through Social Security Administration to be 100% disabled who owns and lives in their home are eligible for disability exemptions. The maximum exemption is $26,543.
- Service Disability: Any person 100% service connected disabled certified by the Veterans Administration who owns and lives in their home are eligible for a service disability exemption. The exemption is $16,330.
- Blind Exemption: Any person who is certified blind by his or her physician will be eligible for the blind exemption. One must live in their home to be eligible for this exemption. The maximum exemption is $48,989.
- Veteran Exemption: Any person honorably discharged from a recognized conflict, widow of a veteran or gold star parent, POW, in accordance with R.I.G.L. 44-3-4) shall be eligible for a veteran exemption. There is no form for the Veterans’ Exemption. Applicants need only submit their DD214 (discharge form). The maximum exemption is $8,138.
- Indigent Exemption: Rhode Island General Law 44-3-3 (16) states, any person deemed impoverished may request relief from taxes. To qualify for consideration, you must reside in the home for an entire calendar year. Provide the Assessor’s Office with any and all documents to substantiate your request. Come to City Hall for a further interview, if necessary.
“Many residents have told me that they were unaware that the City offers several different exemptions for homeowners,” stated Vice-Chairwoman of the Committee on Finance and Majority Leader Jo-Ann Ryan. “These exemptions are in place to help the most vulnerable among us, and it is important that we share these with our neighbors. As we move into the new fiscal year, I look forward to working to help keep our City in good fiscal shape. We have much work to do around pensions, spending, and education – but we are up to the challenge.”
The State of Rhode Island also offers property tax relief through their Form 1040H. The refund is calculated based on the amount by which property taxes (or rent) exceed a percentage of the household income. The maximum refund is $300. You must be at least 65 years of age or older, or disabled. You must have been domiciled in Rhode Island for the entire calendar year. Your household income must have been $300K or less. You must have lived in a household or rented a dwelling that was subject to property taxes. You must be current on property tax and rent payments due on your homestead for all prior years and on current installments. You can find the tax form at www.tax.ri.gov/taxforms/personal.php
In addition to the exemptions listed, residents have 90 days to appeal their current tax bill from the date the first payment is due. Residents may appeal their assessment if they feel that their home is overvalued (assessed value is more than the fair market value as of December 31 of last year); disproportionately assessed in comparison with other properties; classified incorrectly as residential, commercial industrial or open space, farm or forest; illegal tax partially or fully exempt; modified from its condition from the time of the last update or revaluation. To appeal tax bill residents can do so online by visiting the Tax Assessors website or by mail.
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 | 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.
