EAST PROVIDENCE — Last week, the administration of Mayor Bob DaSilva submitted a draft budget for the Fiscal Year 2023-24 starting on November 1, which includes $7.5 million in spending increases with an accompanying uptick in the overall amount levied of the maximum allowed 3.5 percent.

It did so formally to the City Council at a special meeting of the body held Tuesday night, Aug. 22, at City Hall.

The framework expects an operational budget of $191,767,267. The total increase in expenditures came from $4.5 million in the city side and $3 million towards funding the school department.

(Updated, corrected, August 25, 9:45 a.m.) The levy increase translating into a 2.93 percent increase in property taxes — residential, commercial, tangible — means the total amount of taxes to be collected next year will be $115, 728, 713. The total collected for the current fiscal year ending on October 31 is $111,815,182.

City side Finance Director Malcolm Moore cautioned the Council East Providence is likely to continue to bump up against the state mandated maximum increase limit of 3.5 percent not just this year, but also the next few because of its financial commitments to school building construction, specifically that at Martin Middle School.

Moore said this year's increase may have been great if not for some "new growth" in city tax revenues as well as an unexpected "windfall" in state aid of $2 million.

Breaking down what that means for the majority of tax-paying residents, those who own single-family homes, according to Moore the average value of those houses is now $320,000. So if approved by the Council, the average increase per homeowner in FY23-24 would be 2.93 percent or $138.39.

The administration explained the expected expenditures next year as follows:

• A $1.5 million increase of voter-approved debt services – Martin Middle and Waddington Elementary Schools

• A $3 million increase for the School Department ($2M - City & $1M - School State Aid)

• A $500,000 increase for the statutorily-required property revaluation assessment

• $1.2 million increase for municipal salaries, contractual obligations and related benefits

• $300,000 in Refuse/Recycling Tipping Fees increase

• $400,000 Other Post-Employment Benefits (OPEB) increases per the City’s Actuarially-Required Contribution (ARC)

• $600,000 Firemen’s and Policemen’s Pension Fund increases to meet the City’s ARC

• Inflation/Increase of cost of goods and services including utilities such as electricity, heating and gas

In his letter of submission, which he also read into the record at the start of Tuesday night's gathering, DaSilva wrote and said of the draft, "This budget balances the needs and expectations of our residents, continues needed investments in public safety, public education and school infrastructure, and strengthens our private pension fund.

"One of the main challenges was driven by the need to pay scheduled bond debt associated with the voter-approved school bonds. This required making difficult decisions including the elimination of previously-funded, but vacant positions (Deputy Fire Chief, one Park's Division position, and an IT position).

"The City’s finances remain stable and strong, and this budget continues our efforts to provide affordable, quality services, while also recognizing the challenges that our taxpayers face in this economic inflationary climate."

The document now goes to the Council for its consideration and necessary approval. The body will hold a series of workshops/meetings on the budget beginning Tuesday night, Aug. 29.

The Council will also then discuss the budget in some fashion at posted forums on September, 12, 19 and 26 — each a Tuesday — and, if needed, on Monday, Oct. 2.

To respond to any potential veto by the mayor, an override would require a "super majority" 4-1 vote of the members, the Council must return an approved document to the administration by the middle of October.

View the complete budget here...