PAWTUCKET – The city will not see the kind of residential tax hike being requested in several other nearby communities, as Mayor Donald Grebien proposes a of 3 percent increase in taxes for homeowners.
The overall tax levy, or amount to be collected in taxes, is proposed to increase by less than the 4 percent state limit, or 3.96 percent, or up $4.5 million, to $118.4 million. The budget increase from last year is $1.46 million.
For the average homeowner, taxes go up by about $150 per year, from $13.15 per 1,000 of value to $13.55. If moved forward by the City Council as is, commercial owners would see an increase of $634 per year, or from $23.01 to $23.71 per $1,000. Non-owner occupied homeowners see an increase of $500 per year, or $14.47 to $15.58 per $1,000.
“This budget is a roadmap that balances critical investments in city services, education, public safety, and economic development with the discipline required to protect our hard-earned financial stability,” Grebien told the City Council during his budget address last week.
Major revenue changes impacting the budget are $2.5 million less in state aid due to a decrease in school construction aid, $261,750 less in charges for services, $700,000 less in bank investments due to less in ARPA funding, and $313,487 more in fines and forfeitures due to a new camera technology fee and increased zoning fees.
Key changes impacting costs include a medical increase of 16.97 percent, dental increase of 5.28 percent, $1.55 million more in operating expenses across departments, a $5.22 million decrease in debt service, about $2 million in contractual salary obligations, a $147,300 increase in capital expenses, and $500,000 increase for a school contribution, minus a $500,000 grant already baked into the tax levy.
The combined $1 million fully funds the school’s fiscal year 2027 request, noted Grebien.
High-level budget highlights, says Grebien, include:
- Reserves remaining stable at about 10 percent of the operating budget;
- Maintaining strong financial management with high bond ratings;
- Maintaining city services;
- Supporting the Fire Department with a $100,000 grant match to purchase new LifePak defibrillators;
- Investing in youth through sports team sponsorships;
- Continuing to support the arts community through two grant opportunities;
- Investing in updated technology to make services faster, more efficient, and accessible for residents, which will improve response times;
- Continuing to exceed the 10 percent threshold for affordable housing;
- Tidewater Phase 1B moving forward;
- New equipment for medical responses;
- Heavy investments in rescue services;
- And increased police training, recruitment, and retention for a range of circumstances, including active shooter situations.
Grebien thanked the council for its leadership and collaboration.
“While we may not always agree, we are united by a common goal: moving Pawtucket forward and ensuring our city remains a place where residents can afford to live and have the opportunity to thrive,” he said.
He reminded everyone of the “crossroads” Pawtucket was at 16 years ago, facing the real threat of state takeover and bankruptcy, with virtually no reserves and a poor credit rating.
“Today, because of disciplined financial management, strong partnerships, and the support of this council and our community, I am proud to say that Pawtucket stands on solid financial ground,” he said.
The city’s fiscal strength has allowed it to lead Rhode Island in modernizing its public school facilities, “moving students and teachers out of outdated buildings and into 21st-century learning environments, while also continuing to modernize city government and improve the services we provide to residents,” said Grebien.
“And while we are proud of the progress we have made, we also recognize that there is still more work ahead, especially when it comes to continuing to support our students, teachers, and broader education community,” he said.
At the same time, he noted, Pawtucket is not immune to the economic pressures facing households across Rhode Island and across the country.
“As we continue transitioning away from federal ARPA funding, we must confront the financial realities shaping this year’s budget while continuing to protect the long-term stability and progress of our city,” he said.
The City Council will now consider the proposed budget and make changes.
