$568 million municipal budget for fiscal year 2023 approved by Providence finance committee

June 8, 2022

PRESS RELEASE

Contact:

Parker Gavigan, Director of Communications

[email protected]

Budget cuts residential property tax rate, increases seniors’ exemption for seniors, cuts tangible business tax, identifies funds for Superman building, calls for hiring a chef full time firefighters

Tonight, the Providence City Council Finance Committee voted to approve a $568 million municipal budget for fiscal year 2023 that lowers the residential property tax rate to help balance rising home values ​​and the need to fund essential city services. The budget includes public safety funding for a new police academy, adding 50 trained officers to the Providence Police Department. Councilors also approved an increase in the seniors’ exemption, providing seniors with a reduction in their property taxes as other living costs rise dramatically. The finance committee is also requesting the hiring of a full-time qualified fire chief.

“Our families face rising inflation prices, from groceries to gasoline. And while we all appreciate the increase in home values, it was important for the Council to do the math and reduce the tax burden for our single-family, multi-family and senior homeowners without sacrificing city services,” said Advisor and Finance Chair Jo-Anne Ryan. “This collaborative budget places more police officers in our neighborhoods and funds diversion programs and social service agencies to help address mental abuse and addictions. There’s a need for a fire chief in a city the size of Providence. Base firefighters who haven’t had a chief in 7 years deserve one, and so do our residents,” added Ryan.

“I want to thank Chair Ryan and the Finance Committee for carefully reviewing this budget. Reducing the Mayor’s proposal taxes, increasing the seniors’ exemption, and showing that City Council is committed to developing the building. Superman were high priorities,” said board chairman John Igliozzi.

City budget highlights for fiscal year 2023:

  • Residential property tax rate decreased to $17.80 per $1,000 (a decrease from the Mayor’s proposal of $18.50 and the current rate of $24.56)
  • *On average, residential property values ​​have increased by 46%, according to the city’s internal auditor. There are 32,124 residences in the city.
  • Commercial property tax rate decreased to $35.40 per $1,000, which is lower than the current rate of $36.70 (but an increase from the mayor’s proposal of $33.85)
  • *On average, commercial property values ​​have increased by 15%, according to the city’s internal auditor. There are 5,246 commercial properties in the city.
  • Tangible Business Tax decreased to $53.40 per $1,000 (a decrease from the Mayor’s proposal of $55.55 and the current rate of $55.80)
  • Senior tax exemption increases from $511 to $600
  • Property exemption increased to 45% from the current 40% (corresponding to the mayor’s proposal)
  • The deadline for personal tax exemptions is extended from March 15 to December 31 (social security disability, service disability, blind exemption, veteran exemption, indigent exemption)
  • Funding for a new municipal police academy
  • $5 million has been identified for the development of the Superman Building (111 Westminster Street, if the development receives General Assembly and City Council approval)
  • Provides funding for a qualified full-time fire chief hired with an annual salary not to exceed $175,000
  • Reallocates approximately $4 million in ARPA funds to small businesses or improving infrastructure in our neighborhoods

The 2023 municipal budget will now be presented to the full municipal council for final approval.

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