No tax increase in proposed budget

“To the Nostradamuses, the malcontents and the misfits who predicted a tax increase this year, there is no tax increase,” said Mayor Joseph Polisena of his proposed $106,545,145 budget for the 2017-2018 fiscal year, which will be considered on June 13 at the Johnston Town Council meeting.

Polisena reiterated that the town did not have a tax increase last year and stated that any changes brought about from the town’s recent statistical re-evaluation of properties were state mandated. Citing the recent growth in business initiatives, the total tax levy this year is $76,403,133, a proposed increase of 0.72 percent.

Additional state funding has increased this year’s proposed budget by nearly $2.8 million to $56,847,789. Calef Elementary School, which will be rented by North Providence next year as that city builds new elementary schools, was cited by the mayor as a gain for the town. North Providence will be responsible for all maintenance and upkeep of the building while in use.

Fire and police budgets are up year over year. Last year, the fire department’s budget was $15,813,262, while this year that allotment totals $17,257,635. The police department’s budget increased by $1,729,223 to a total of $15,496,461. During last month’s council meeting, auditors advised the town to keep track and review staffing and overtime levels, especially for the fire department, saying that callbacks and overtime salaries were “way over” last year’s budget.  

“At the fire department, we have four or five firemen that have filed for disability through the state. The state keeps turning them down so we have to keep paying them,” said Polisena. “These claims are legitimate. Each firefighter that’s out has to be replaced, and that’s where the overtime comes in.”

Polisena added that while overtime is difficult, it’s still less expensive to pay overtime than it is to hire a new employee because of the added benefits, wages, sick vacation time and allowances needed, which adds up to approximately $100,000 a year.

“Then you have the long-term legacy costs of pensions and healthcare,” said Polisena. “It’s a delicate balancing act and something that I have to look at long-term.”

The mayor said he’s looking forward to seeing if financial rating agencies will change the town’s financial standing. He also reiterated that the town is on its way towards fixing legacy pension costs for public service workers, saying that their pension plans we’ll be funded to 60 percent in 20 years, and four years later they’ll be funded to eighty percent funded.

“It took 20 to 30 years for the pensions to get this way, it’s going to take 20 to 30 years to fix it,” said Polisena.

Polisina also mentioned the town’s progress in making their facilities energy efficient with heating and lighting, which was “desperately needed,” and the cost savings that will produce for the Johnston over time.

Johnston’s property tax rate will remain at $27.49 per $1,000 of assessed value for real estate, and $59.71 per $1,000 of assessed valuation for tangible property. The rate for motor vehicles also remains at a rate of $41.46 per $1,000.

Other budgets proposed for departments of note include $722,973 for the public library, $973,912 for parks and recreation, and $5,033,356 for public services. The budget proposal will be considered by the town council beginning at 5:30 p.m. on June 13 at the Municipal Court.

“It’s a good budget, it’s a lean budget, there’s no ghosts or boogeymen coming out,” said Polisena. “Were doing things that the town needs, and we’re reinvesting in the town and our people.”