On Monday, June 26, Mayor Brett Smiley signed the city’s $583 million FY 2024 budget that takes effect on July 1.
Earlier in June, City Councilors approved the final passage of the budget by a vote of 12 to 1. The FY 2024 budget modifies residential and commercial property tax rates and helps owner-occupied residents. If strong PILOT (payment in lieu of taxes) agreements with tax-exempt institutions are secured, the budget allows for significant investments in improving quality of life issues for city residents, including the purchase and training of sound meters to enforce high levels of noise.
“The budget received broad support on Council because it is a fiscally responsible budget that achieves savings for our residents without sacrificing quality of life city services. The Council listened to our neighbors hit hard by steep home revaluations and significantly lowered proposed property tax increases,” said Council President Rachel Miller. “The FY24 budget lays the groundwork for strong PILOT agreements with our tax-exempt institutions, freezing non-essential hiring until we have signed agreements. I thank Mayor Smiley and his team for their open collaboration in the process. A special thank you to the Council Finance Committee and Chair Helen Anthony, who spent many late nights examining department budgets and asking thorough questions to save taxpayers money.”
FY 2024 City Budget property taxes:
· Residential property tax rate increases to $18.35 per $1,000 (a decrease from the mayor’s proposal of $18.70 but an increase from the current rate of $17.80)
· $226 tax increase for the average-priced home ($222 less than the budget proposed in April)
· Commercial property tax decreases to $35.10 per $1,000 (an increase from the mayor’s proposal of $34.10 but a decrease from the current rate of $35.40)
· Homestead exemption decreases to 43% from the current 45% (increases from the mayor’s proposal of 40%) *Homestead exemption is a tax exemption for those residents living in their homes
FY 2024 Budget highlights include:
· $4.1 million in tax savings achieved by the Council
· Hiring freeze for new non-essential jobs (This is the result of a $7.1 million shortfall in PILOT, payment in lieu of taxes funds from tax-exempt city hospitals and universities)
· $1.5 million allocated for neighborhood infrastructure projects (playgrounds, school buildings, and street safety improvements)
· Funding for a lateral Providence Fire Academy and a second Providence Police Academy (to begin approximately in February)