March 29, 2024

Special Budget Meeting - Tuesday at 5:45 PM - EP City Hall

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By Bob Rodericks

Mayor Briden announces Budget Meeting. Public Invited:

The East Providence City Council is meeting on Tuesday, October 14, 2014 to continue its' review of the new budget. The council gave first passage to a budget for next fiscal year which calls for no tax increase. 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.

"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.

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 wants further cuts to the budget across the board. "We can do this without hurting any departments in this city," said Rossi. "I don't think we can do that," said Lemont. "The council voted first passage not to accept any of the proposed cuts but to instead, reduce the amount of tangible tax relief to businesses from $10,000 to $5,000 there by voting to keep all department's budgets in tact 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 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."

The special meeting will be held at City Hall, Tuesday at 5:45 pm.

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