EG officials hope to hold line on taxes in next fiscal year
East Greenwich town council is hoping to hold the line on the 2024 fiscal year tax rate, according to town manager Andy Nota speaking at a recent joint meeting with the school committee.
Projected tax rates include $21.85 per $100,000 of assessed valuation for residential property, $28.83 per $$100,000 for commercial property and $45.50 per $100,000 for personal property.
The town council hopes to retain these rates for the coming fiscal year.
And while the council hopes to hold the rates level so does the school board.
Last year’s school budget was $51.6 million, which was 68 percent of the total town budget of $78.5 million of which 34.3 percent was allocated for the town.
These numbers for the
Jus ma the mo am ren da PEI kil jus 2024 budget year esti-ca mates, Nota said. Ke
To support the schools’flo budget, last year the town gave the district $39.7at million, which was aboutto $500,000 less than it askedhip the council for. Over thefur course of the last fewed years, Nota has urged thech school committee to usebu more of its surplus to help offset the amount of the asks from the town.
While Nota has yet to say how much if any, he will look to cut this year’s ask, council members said they expect a similar cut.
Under state law the committee will approve its budget in April, with the town having to do the same in June.
A district budget with the ask for town funds will be presented to the council next month giving the council time to assess all of the information and begin to finalize its budget
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including the district’s portion.
But both the district face increasing costs. The district is facing about a 3 [recent increase in contract obligations such as teachers and staff pay hikes, and increases in health care costs.
And the town is facing increases in road improvements, building maintenance, and salary hikes.
To help offset some of the school increases, it estimated the district will see a $5.9 million increase in state aid, but that number is just an estimate until RIDE announces its numbers.
When putting all of these numbers together, Nota said the town, like the others in the state face a number of uncertainties.
“Similar to many Rhode Island and New England towns, we have a high dependence on property taxes with proportionally smaller support from the state and other sources while also lacking a substantial commercial tax base; Lack of diversity in sustainable revenue sources; The majority of the Town/school budgets are associated with personnel costs. Ongoing contract negotiations offer both opportunities and challenges for our community’s resources; Aging infrastructure, both town and school require increased regular maintenance, renovations, or replacement. Significant Town and School investments are needed; Our small relative size makes us susceptible to cost impacts from changes, requiring our success in partnering with others in seeking economies of scale in services; Lack of a clear and effective communication strategy in the past – new systems, trainings, and sustainable investment are being made in FY2023; External mandates and uncertainty associated with state and federal funding along with broader economic fluctuations regionally/nationally and other dependencies; Sea level rise and other effects of climate change. Although not well quantified, we should be mindful of these future impacts and other resiliency challenges; Limited affordable, accessible, and appropriate housing options; Pension and OPEB obligations
Transportation, Health Insurance Cost Volatility - Solid Waste Costs - Variability of Special Ed. Services/costs, New Programs and Initiatives - Sewer Infrastructure - Enrollment Trends, Aging infrastructure - Public Safety Systems/staffing (inc. roads, sidewalks, buildings, parks) - Increasing Educational - Increased Service Demands Mandates, Increased Service Costs - Other - Unmet Facility and Staffing needs, Pension Volatility and Risk - Transition of School, Inflationary Cost Pressure Costs from Town Budget, Changing Workforce – and Increased Service Costs,” Nota explained.
And while numbers, at this time are just estimates, as the district begins to finalize its budget which will allow the town to finalize its spending plan, by next month when the district submits its preliminary budget to the town, the numbers will be less an estimate and a more solid budget for the coming fiscal year.