Providence is getting closer and closer to a spending plan for the next fiscal year. The City Council Monday night, in a special session councilors gave initial approval to the budget and its tax plan. But some councilors are concerned with the tax side of the budget.
Under the present plan that residential rate would go down by about 7 dollars per thousand. That's because during the last round of valuations, property values skyrocketed across the city. The City Council plan would go to $35.40 cents/thousand. That too is a little lower than the $36.70 that is currently being paid by the more than 52 hundred businesses in the city. Some councilors however are not thrilled. They would like to see lower rates for commercial rates in fear over any cost increases in taxes to be passed along either to consumers or renters.
Other provisions of the budget include:
Elderly tax exemption increased to $600 from $511
Homestead exemption increased to 45% from the current 40% (matching the mayor’s proposal)
Deadline for personal tax exemptions is extended from March 15 to December 31 (social security disability, service disability, blind exemption, veteran exemption, indigent exemption)
Funded a new city police academy
$5 million has been identified for the development of the Superman building (111 Westminster Street, should the development receive approval by the General Assembly and City Council)
One more vote is needed by the City Council is needed and then the package would go to the Mayor Jorge Elorza.
A final vote is expected Thursday.