Providence City Council Gives Final Approval to FY17 Budget

Thursday, June 16, 2016

 

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"Under the City Council’s spending plan, fewer administrative jobs will be filled next year, and more funds will be allocated for neighborhood infrastructure investments and securing the city’s financial footing. The budget designates $1 million for neighborhood infrastructure improvements and increased the administration’s proposed contribution to the” rainy day” fund by $1.2 million, said the City Council in a press statement.

As GoLocal reported on first passage of the budget on Monday:

In the midst of the city facing financial uncertainty, the line item for salaries in Mayor Jorge Elorza's office is up nearly $300,000 over last year in Providence's Fiscal Year 2017 budget. 

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On Monday, the Providence City Council voted 10-5 to approve the recently approved tax levy for the upcoming year. The second vote was 10-4 (with Councilman Nick Narducci leaving), and then the rest of the ordinances considered were approved 11-3. Council members Seth Yurdin, David Salvatore, Sam Zurier, Wilbur Jennings, and Narducci voted against the proposed tax levy on Monday. 

"No amendments were offered, everyone who had something to say said it. The dissenters dissented, the supporters supported," said City Council President Luis Aponte. 

One line item of note in the budget was that salaries for the Mayor's office grew from $1,775,748 in FY16 to $2,0171,694 for FY17 -- over 15%.

The budget also reserves $1 million in a contingency fund to cover costs that will likely arise following litigation over shift changes and overtime pay for firefighters; similar measures were taken by the North Kingstown Town Council in preparation for the eventual resolution. The Council will continue to fund new hires in the police and fire departments: academies for 60 new police officers and 80 new firefighters are included in this year’s spending plan.

These additional contributions and investments were added to the spending plan once the City Council’s financial team identified $1.5 million in previously unreported revenue sources; over $1.4 million in PILOT revenue and the sale of the Flynn School were not included in the administration’s budget proposal.

 

Related Slideshow: 10 Things to Know about Elorza’s Fiscal Year 2017 Budget Proposal

Providence Mayor Jorge Elorza introduced his Fiscal Year 2017 budget proposal for the city -- here are 10 things you should know. 

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Car Tax Exemption

Elorza's FY17 budget raises the car tax exemption from $1000 to $2000.  

The exemption had once been as high as $6,000 in the City of Providence, which has the highest car tax rate in the state.  

Elorza had pledged during his campaign to raise the examption up from $1000 -- which will have budgetary implications, but had been an issue of importance to Elorza due to its impace on lower-income residents. 

 
 

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