EAST PROVIDENCE — The City Council at its meeting Tuesday night, April 4, unanimously backed a pair of measures dealing with levies of sorts, giving its approval of a new schedule of sewer rate increases while supporting a proposition presented by the administration of Mayor Bob DaSilva in its quest to collect from property tax delinquents.

Sewer hikes
Following up on its initial vote at its March 22 forum, the Council gave the second of two necessary affirmative votes to the sewer rate hikes. Two separate votes were required because increases must be done through the ordinance process.

As presented initially, “Option 2” of two given to the body by the consulting firm Raftelis Financial Consultants Inc., will see the annual fixed fee raise from $60 to $120 and the volumetric rate for a vast majority of residents/customers with a 5/8-inch pipe move from $10.74 to $12.40 per 100 cubic feet of water used monthly.

Those initial changes are set to take effect on May 1 and will remain in place until the end of the current Fiscal Year 2023 on October 31, though that is not all for the calendar year. The same rates will rise again — $124 and $12.77 (or 3%), respectively — beginning at the start of FY24 on November 1, then another 3% each year through Fiscal Year 2027.

The following is schedule of sewer rate increases, the first coming in May 2023 and rest over the next four fiscal years:

Size; Now; 5/1/23; 11/1/23; 11/1/24; 11/1/25; 11/1/26

• ⅝ inch: $60; $120; $124; $128; $132; $136
• ¾ inch: $100; $200; $206; $213; $220; $227
• 1 inch: $150; $300; $309; $319; $329; $339
• 1½ inches: $300; $600; $618; $637; $657; $677
• 2 inches: $450; $900; $927; $955; $984; $1,014
• 3 inches: $980; $1,960; $2,019; $2,080; $2,143; $2,208
• 4 inches: $1,660; $3,320; $3,420; $3,523; $3,629; $3,738
• 6 inches: $3,440; $6,880; $7,087; $7,300; $7,519; $7,745
• 8 inches: $4,950; $9,900; $10,197; $10,503; $10,819; $11,144

Key points as presented by Raftelis reps noted the city's sewer fund has not had a volumetric rate increases since FY 2015 and has not had an increase to the minimum charge in over a decade. In addition, the general fund has subsidized the sewer fund over the last several years in the amount of almost $4 million.

Tax amnesty
In addition, the Council, via two non-binding resolutions, formally submitted its support of the administration's plan to offer amnesty for those residential/commercial property owners as well as those behind on their car and/or tangible taxes. This program is not open to those who may, in the future, be delinquent on their taxes."

The amnesty program would actual entail two separate sixty-day periods, one each in Fiscal Years 2023 and 2024, for the waiver of interest and penalties on overdue real property tax payments.

Any proposed changes on matters of taxation must gain approval from the General Assembly, so the city has sought the assistance of East Providence's delegation led in the House by Majority Whip Katherine Kazarian (D-Dist. 63, East Providence, Pawtucket) and in the upper chamber by Sen. Valerie Lawson (D-Dist. 14, East Providence), the senior members in each. Representatives Jennifer Boylan, Matt Dawson and Briana Henries and Senators Robert Britto and Pam Lauria have also co-sponsored the respective bills.

House Bill 6165 and Senate Bill 885 entitled “An Act Relating to Taxation – Levy and Assessment of Local Taxes” would allow the city to offer delinquent property owners the opportunity to get up to date on their taxes by creating a one-time "tax amnesty program."

According to the administration, the program would be "limited in scope to those property owners who are already behind and have accumulated substantial penalties. The tax amnesty legislation will offer property owners some relief by eliminating up to $10,000 in accrued penalties."

The bills in the Assembly are called "enabling legislation," as explained by City Solicitor Michael Marcello, and give the city the ability to address the matter. The Council would still need to follow the same aforementioned ordinance process (two votes, public hearing) to fully implement the amnesty program.

Though he supported the measures and actually sponsored one of the resolutions at the administration's request, Ward 4 Councilor Rick Lawson called the approach "a band aid." He wondered why the current policy is to charge 12 percent interest on delinquent accounts and why when people in arrears do make payments it goes to interest/penalty instead of the principle owed?

According to Marcello, as calculated by Tax Assessor Sarah Frew and city-side Finance Director Malcolm Moore, for back real estate taxes alone between 2005-2021 the outstanding balance owed is $19.9 million with penalties of $494,000.

As for delinquent car taxes, Marcello put the number over the same time from at $3.8 million of principle with $1.4 million in penalties and arrears tangible taxes, again during the same period, as $5.2 million of principle with penalties of $348,280.