City Internal Auditor to Hire Independent Financial Consultant to Review All Current and Proposed Tax Policy and Tax Stabilization Agreements in Providence

City Internal Auditor Matthew Clarkin Jr. has worked with the Rhode Island Public Expenditure Council (RIPEC) to create an RFP for an independent financial consultant. The consultant would review the city’s current and proposed tax policy and tax stabilization agreements (TSAs), and their long-term financial impacts on tax revenues.

“Whenever the city wants to make changes to the tax policy we must look to experts to help guide us in best practices,” stated Councilman and Finance Committee Chairman, John Igliozzi, Ward 7.  “This will ensure that we are making the best fiscal decisions for the city and our residents. With our tax base shrinking we need to be clear about the true cost of any permanent TSAs, and make sure that we aren’t putting any of that lost tax revenue burden on homeowners.”

Over the past month, the Internal Auditors office has been reviewing current TSAs and will be issuing a report by the end of the year. The report does not review what kind of impacts the newly proposed Providence Tax Stabilization Investment Act would have on the city’s tax base.  This ordinance, which was introduced at the November 16, 2017 City Council meeting and was referred to committee, calls for broad changes to the TSA program, including making all areas of the city open to TSAs and not just under-utilized neighborhoods in need of revitalization.

The financial consultant will review the impacts these proposed changes would have on the city and its tax revenues.  The Internal Auditor went before the Board of Contractors and Supply on December 11, 2017, and RFPs will be accepted until January 22, 2018.

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