March 28, 2024

City Council Adopts Final 2014-15 Budget - No Tax Increase

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Council Cuts out Its' Own Pay Raise

By Bob Rodericks

The East Providence City Council gave final approval on Tuesday night, October 14, 2014 to the 2014-2015 new budget. The budget has a zero tax increase. The council had previously given first passage to a budget which called for no tax increase also. City Manager Paul Lemont wanted a slight .5% increase "to continue all of the improvements we are making in this city." But the council only agreed to a no-increase budget by changing the tangible business tax exemption from $10,000 to $5,000 and cutting set aside TANS or tax anticipation loans. However one council member wanted even further cuts which Lemont and the rest of the council disagreed with at that time. But since the first passage of the budget, city councillors decided to hold a special meeting at 5:45 PM just before the school committee meeting. "We are having a Council meeting this Tuesday at 5:45pm to spend more time on the budget and to evaluate the feasibility of making some additional cuts. Although we were presented with a very good budget and we cut approximately 250k at our first meeting, we may be able to do a bit more," said Mayor Jim Briden before the meeting. Briden said the primary purpose of the special meeting was to see if the council could make further cuts.

Briden went on to say that "the main purpose of our last meeting was to establish the parameters of the budget which are no tax increase and a new 5k business tangible property tax credit. This will not change. In making these decisions, we relied upon the recommendation of our Fiscal Advisor Paul Luba. In response to my question, Mr. Luba opined that our no tax increase with a 5k business tangible tax exemption plan was a responsible budget," said Briden.

"Sound tax policy requires that one implement programs that are sustainable over a period of several years. Businesses need to be able to prepare pro forma financial statements and to know that the 5k tax credit will remain as a constant that will not be reduced. In future years, this Council can evaluate whether it is feasible to increase the credit amount.

In deciding on a 5k exemption and in looking to make some further cuts, our primary focus is on the financial position the City will be in a year from now. The discipline and core objective remain our adherence to our multi-year budget plan," said Briden.

However, Chrissy Rossi, Ward 4 council member wanted further cuts to the budget across the board. After the first passage Rossi said "we can do this without hurting any departments in this city," said Rossi. "I don't think we can," said Lemont. "The council voted first passage not to accept any of the proposed cuts (by Rossi) but to instead reduce the amount of tangible tax relief to businesses from $10,000 to $5,000 thereby voting to keep all departments' budgets intact as presented by the city manager. It adds an intern in the law department, more outside services, a secretary in planning and practically doubles the council's salaries. There's even a duplicate line item no one wanted to address. So please remember next year when you get told about the "fiscal responsibility" and that we have a surplus, we already knew that. Sorry city businesses...I tried," said Rossi in a release. "When Rossi asked the city manager if the council really needed to double its salary, Lemont responded, "yes."

One school committee member was satisfied with the first passage of the budget. The council's preliminary budget gives the school department all of the funding it had requested in its budget proposal. The schools are gaining $1.2M more in state aid and the city appropriation is up $800,000 over last year. "New member Nate Cahoon posted a statement that said "the city council voted to adopt (more or less) the budget as the City Manager proposed. There were a few adjustments. The bottom line as it pertains to the School Department is that the increase proposed by Mr. Lemont has gained the Council's approval…the School Department will be allocated an additional $2M of sorely needed funds over last year's allocation. Given the improvements we still need to make, and the momentum we've got now, this will help us to continue our recent renaissance," said newbie Cahoon. "Let's jump on the bandwagon, EP…there's a new day dawning."

However when the council met again at its' special meeting (October 14th), they voted to eliminate the raise for themselves. The raise was stricken without specific discussion. City Manager Paul Lemont and Ward 2 councilman Helder Cunha were not in attendance during the special budget session. About 22 people were in the audience with roughly half that number being city department heads. One candidate for office, Candy Seel in Ward 3 was there but left before the meeting was over and didn't speak.

Much of the meeting was directed by Ward 3 councilman Tom Rose who listed a number of possible additional cuts the council might make. "After looking into this budget closely and with input from financial directors Malcolm Moore and Paul Luber, I feel that we are planning well for the future and staying close to our recommended five year plan," said Rose. Rose then went on to recite a list of potential cuts to several line items in the budget. From $30,500 to $18,500 for council salaries. The $18,000 is the total for all 5 council members together. Cut $1,000 from the City Clerk's postage account; cut $3,500 in the tax collection office; cut outside services for planning and legal by $30,000. Cut the electrical utility account for street lighting from $750,000 to $730,000. The council discussed how they have been trying to put more street lights on due to safety concerns and citizen complaints after the former budget commission shut down several street lights. Other items such as un-reimbursed medical police costs were cut by $8,000. Other monies were shifted to give the Pierce Stadium and Crescent Park carousel slight increases to make long awaited repairs. "Did you know that Pierce Field has no money for grass seed," asked Chrissy Rossi. "They have to count on donations to plant grass. The 5th largest city in the state and we rely on donated grass seed for Pierce," said Rossi disapprovingly. Money was shifted to Pierce Stadium by taking $20,000 from the $100,000 slotted for Kent Field rehab work and $4,000 from a carousel account. The carousel account still is an increase over last year.

When all the cuts and shifting was done, the council cut a sub-total of $134,350 additional monies during its' special meeting. The grand total amount sliced from Lemont's budget was $334,500 with the business exemption set at $5,000 not $10,000 and the tax anticipation loan cuts. Because the council's preliminary passage called for a no-tax increase, these additional cuts will amount to a budget surplus for next year. The council voted to earmark the surplus for further homeowner and business tax relief for next year at this time. However it was noted that emergency expenditures may come into play before then.

"I am happy that we are improving our city and did this with no increase in taxes," said Rose. "We can look to the future and keep to our five year plan," he added. At-Large councilwoman Tracy Capobianco and Chrissy Rossi agreed with that sentiment. Mayor Jim Briden thanked "a very committed city council who worked very hard on this budget process. We are all working together well, I don't think the public knows just how hard." said Briden.

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