Providence Mayor Jorge Elorza delivers his first budget address. Photo by Andrew Augustus, WPRO News.
By Sam Wroblewski 630wpro.com
Providence Mayor Jorge Elorza says there will be no new taxes in his proposed $696 million budget that calls for new Police and Fire academies and increased funds to the Department of Public Works.
The Mayor’s office said the lack of new taxing despite a two percent budget increase was made possible by new tax revenue, managing city salaries, and an increase in permitting fees. Elorza touted $500,000 in new tax revenue from buildings along the working waterfront. The Mayor also proposes a 10 percent increase to the city’s building fees.
Elorza said the decision to not raise taxes was difficult but necessary.
“Providence’s average household income is among the lowest in the state. I cannot ask those who can least afford it to shoulder more of the burden,” said Elorza.
The Mayor said his team has is also looking to increase revenues from the city’s parking meters by updating machines to accept credit cards and by expanding meter coverage along the 195 land and the East Side. The city will also be buying back its street lights currently leased to National Grid saving the city $1.2 million per year and contributing $685,000 dollars in the FY2016 budget.
Additionally, the Elorza administration will seek to repeal the non-owner-occupied home tax break to increase revenues.
The Mayor also stuck to his campaign promise to invest in the city’s shipping industry saying, “In the coming year you will see a focus on increasing imports and exports so that we can convert the deep water channel into the true economic driver it has the capacity to be.”
On the expenditure side, Providence’s Department of Public Safety accounts for 42.3% of the proposed budget. The city will be opening a new Police and Fire academy; the former will help accommodate the mayor’s campaign promise to increase city foot patrols, and the latter to fulfilling minimum manning hours for the Fire Department and cover future retirements. The new budget also accommodates for increased cost of Police overtime as federal grants offsetting public safety cost have dried up.
Elorza also proposed investing more money into DPW to the tune of $20.9 million. The budget calls for a 10 percent investment to the department, which includes 12.5 percent increase in snow funds as well as a 10 percent increase in street sweeping. The $20.9 million figure also includes $100,000 in added funds for leasing additional multipurpose DPW vehicles.
“This is a very lean, lean budget,” said Elorza “The progress we’re going to make as a city comes through innovation and efficiency and by making strategic investments.”
The Mayor also stuck to his promise to invest in the city’s schools by including a $10 million bond to renovate deteriorating buildings. $7.2 million is also being given to the city’s schools through state aid.
The city is also setting aside $4.3 million towards the deficit created by the “fiscal hurricane” in 2011. The deficit is expected to be paid off by FY2017.
Also included in the budget are funds for future public employee union contract negotiations.
After hearing the Mayor’s speech, Providence City Council President Luis Aponte said he is cautiously optimistic about the budget.
“It’s a very lean budget, it is an ambitious budget to try and manage and I think it will be one that will present a whole series of challenges,” said Aponte.
