Politics & Government

Woonsocket Budget Commission Votes To Send Out Bills For $2.5 Million Supplemental Tax

The Woonsocket Budget Commission has realized $4.7 million in savings from negotiated union concessions and an "enactment" of police union healthcare changes, cueing the mailing of bills to raise the $2.5 Supplemental Tax Monday. 
 
On Wednesday, the Woonsocket Police Union voted against ratifying negotiated concessions, the bulk of which concern moving police into the city's unified healthcare system. According to Jennifer Findlay, state-appointed financial advisor to the Budget Commission, that prompted two moves from the Budget Commission: A return to the negotiating table, and the engagement of enactments passed in April which make the changes in the interim. 
 
With the existing ratified union agreements and the enactment of the police union healthcare changes, the Budget Commission has managed to save $4,738,000 in savings from union concessions, said Budget Commission member Peder Schaefer. 

Last week, the House version of the $2.5 million Supplemental Tax Bill passed with an amended condition that the Budget Commission first come up with $3.7 million in negotiated union savings before the tax could be assessed. 

"I'm confident that we've met the test for the Supplemental Tax," Schaefer said during Monday's Budget Commission meeting. 

RI Director of Revenue Rosemary Booth Gallogly thanked the Woonsocket delegation for their work to draft the bill. "They worked well into the night for a couple of nights on this," Gallogly said. The Budget Commission voted unanimously, and stoically, to mail out bills to raise the $2.5 million. 

Now, supplemental tax bills will be mailed to residents at the end of July and will be due Aug. 29, in one installment. At the suggestion of Rep. Lisa Baldelli-Hunt, the supplemental tax spares single family, owner occupied buildings, since those owners face the hardship of a reduction in the homestead exemption from 39 percent to 30 percent this year, along with the regular tax hike to the cap at 4 percent.

For the owner of an average home in Woonsocket at $150,000, this year's bill will be $3,628 with the homestead exemption dropped to 30 percent, said Tax Assessor Chris Celeste. 

On the vehicle excise tax side of the supplemental tax, which is 18.7 percent, or $8.73 per thousand,  the owner of an average car in the city valued at $4,000 will see an additional $34.92 in tax, Celeste said.

The tax assessor's website outlines how the supplemental tax will be applied to all tax classes: "According to the bill passed by the General Assembly, the 2012 supplemental bill will be applied to all motor vehicles and residential real property including apartments with 11+ units, and excluding owner occupied single family and condominiums that received a homestead exemption for tax year 2012."

"Any exemptions that are given as tax dollars have been applied to the original 2012 tax bill and will not be applied to the supplemental.  Any exemptions that are given as a percent of assessed value will be applied on the supplemental bill.  Motor vehicle excise assessments will keep the $500 state phase-out deduction.  The rates per $1000 of assessed value are as follows:  Residential real property at $1.55, Apartments with 11+ units at $1.90, and motor vehicle excise at $8.73," the assessor's site reads.

"No matter how you look at it, this is not a great situation to be in," said Mayor Leo Fontaine, referring to the extra tax bills residents will be getting. But, he said, this now opens the way for the city to mend its finances in the long term. 

A few loose ends on that remain. 

The Woonsocket Firefighter's union, whose contract lasts until next June and is immune to the "enactments", is still negotiating with the city. "They have indicated that they still want to meet," Findlay said. They've arranged a meeting with Dan Kinder sometime next week, Findlay said.   

The Woonsocket Budget Commission must still either approve raising trash fees from $96 to $192 per household, a move that met with strenuous opposition June 17, find $1 million in cuts from the budget or raise that much in revenue. 

Findlay noted that any additional savings realized through the firefighter's union contract negotiations would add to the $4.7 million already saved through negotiations. 


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