Projo 7 to 7 News Blog

CUMBERLAND, R.I. --The Town Council late Wednesday night unanimously approved a $77.5-million municipal/schools budget, adding $50,000 to the proposed bottom line and pushing up the projected tax-rate increase to 3.43 percent -- above the town's 3-percent cap on yearly tax increases but within the state's cap.

Town officials have said that Cumberland, which unlike other Rhode Island communities has its own cap, may, under the ordinance, exceed the cap in certain situations. The town must not exceed the state's cap.

The council-approved budget increases what was a proposed tax rate of $13.19 per $1,000 of assessed property value to $13.25 per $1,000 of assessment.

In Cumberland, the council decides the budget, following public hearings, which were held last week and on Monday. The council, per procedure, must take a second vote on the budget, which is scheduled for next Wednesday night. In recent history, second votes have typically affirmed the first vote.

The budget covers the fiscal year that will begin July 1. The council does not officially set the tax rate until next April and residents do not receive a tax bill with the new rate until that May. Cumberland's budget process, unique among Rhode Island communities, means officials go back into the budget 10 months into a fiscal year with actual revenue numbers to make adjustments.

Several budget amendments won council adoption Wednesday.

In a 5-to-2 vote, the seven-member panel cut $2,500 from the adult literacy program and moved it to increase the RSVP program that sends volunteers to help elderly people clean homes and to deliver Meals on Wheels food assistance.

Also in a 5-to-2 vote, the council added a $50,000 "school improvement" line item to the budget. That will go toward improving school libraries based on the new library at Cumberland Hill Elementary school, which school officials describe as the model for the others. But the council attached a proviso to using the money that school officials come back before it with a presentation.

And the council will use $226,000 from a vehicle reserve surplus to reduce the need to tap undesignated surplus. (It allows the budget to keep what amounts to savings). Finance Director Thomas M. Bruce said after Wednesday night's meeting that bond rating agencies tend to look more favorably on a community that maintains undesignated surplus.

School district officials have agreed to contribute $375,000 for the town's contribution to school expenses. However, after much back and forth, the adopted budget takes out language specifiying that the money is coming from the school district's surplus. School district officials argue that appropriating school surplus to that end is illegal; the town's solicitor did not agree. In the end, it will be up to the School Committee to decide hwo to meet the $375,000 commitment.

Meanwhile, in the spirit of that cooperation, the town will cover up to $100,000 for a chairlift at North Cumberland Middle School to meet an order the school system is under to comply with the Americans with Disabilities Act.

Many of next year's expenses remain at this year's levels and there are decreases in some instances. But a roughly $1-million increase in debt service that hits in the coming year drives much of the tax rate increase, with the additional increase that the council added Wednesday night mainly for school expenses.

A portion of the total of $2.5 million in debt service will be offset by state reimbursement.

 Tags  budget Cumberland RI economy

Comments

Joe said:

I wish the town would take better care of its school grounds. Have you seen the conditions? Very frustrating.

Link | June 4, 2009 12:05 PM
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Volunteer said:

To Joe - Instead of complaining about it, why not pitch in a little and ask how you can help? Maybe you can adopt a small spot on the grounds and keep it up to your standards....I'm so tired of everyone having complaints, but not ever wanting to be a part of the solution...

Link | June 4, 2009 5:02 PM
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