Projo 7 to 7 News Blog

PROVIDENCE, R.I. -- Mayor David N. Cicilline will seek a tax-rate increase this year even as he proposes to cut $25 million from city spending.

The mayor submitted a budget to the City Council just two months ago that proposed no increase in the property tax rate for the fiscal year that began July 1.

He was forced to revise his proposal after the General Assembly in late June approved a state budget eliminating general revenue sharing to municipalities, a cut of nearly $7 million to the city. The mayor's proposed tax increase covers much of that shortfall.

At a news briefing Monday morning, Cicilline said the tax increase was a "last resort" but was needed in order to maintain "essential" city services.

"It was not an easy decision to make," he said. Asking residents to spend "one more dollar will be difficult at this time."

The $615.9-million operating budget is $7.1 million less than the budget he proposed in May. It calls for a citywide wage freeze, an increase in health-care co-payments and department cuts totaling $1.4 million.

But it also seeks to raise $6 million through a 2.26-percent tax increase over the previous year.

Under the proposal, the residential property tax will go from $23.70 per $1,000 of assessed valuation to $24.21.

For residents with a homestead exemption (meaning they are owner-occupied homes), the tax rate is discounted by half, meaning it will go from $11.85 to $12.11 per $1,000, or an increase of about 26 cents.

That means that a homeowner with a house assessed at $200,000 would expect to see a $51 tax increase over last year, according to Cicilline.

Cicilline is proposing increasing the commercial tax rate by 60 cents, from $28 per $1,000 to $28.60.

The new spending plan represents a 4-percent reduction in city spending from last year.

It now goes to the council's Finance Committee, which has been holding department-by-department public hearings in the mayor's previously proposed budget since June.

The council must set a tax levy, or the amount to be raised by taxes, by July 31.

 Tags  budget Cicilline Providence RI taxes

Comments

Shecky said:

My house is already being taxed at more than $100,000 over the last appraisal I had done for a loan. If they need more money they need to start taxing the colleges. Providence residents already pay MUCH more taxes than other communities in the state. It is obscene that I should be paying more when I can barely make ends meet when a huge organization like Brown or PC sits back and pays nothing.

Link | July 13, 2009 5:52 PM
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