City Council proposes 4.93% tax levy increase amid budget discussions

In the heart of East Greenwich, the Town Council convened on May 19, 2025, to discuss pressing financial matters that will shape the community's future. As council members gathered under the familiar glow of city hall lights, the atmosphere was charged with anticipation over the proposed budget for the upcoming fiscal year.

At the forefront of the discussions was a significant budget impact, with a proposed overall tax levy increase of 4.93%, translating to just under $3.2 million. This increase exceeds the customary state law limit of 4%, a decision driven by several factors, including community growth and rising debt obligations. Notably, the council is preparing for a bond issuance later in June, which will incur approximately $1.8 to $2 million in interest payments due to the school construction initiative.

The proposed residential property tax increase would see rates rise from $14.73 to $15.46, while commercial property taxes remain steady despite a notable 20-30% growth in the commercial district. The overall tax levy is set to support programs totaling nearly $68 million, with the entire budget reaching approximately $90.5 million, encompassing various revenue streams and proprietary funds.

The school department is also a focal point of the budget discussions, with a recommendation for a 4% increase, the maximum allowable under state guidelines. This would elevate the school tax transfer to just under $43 million. The general fund is projected at $18.7 million, reflecting a 4% increase, while debt service is recommended at just under $4.3 million, marking a significant 20.5% rise.

As the council members sift through the details of the budget, the implications of these financial decisions loom large over the community. With the library fund also seeing a modest increase, the council's deliberations will undoubtedly influence the quality of services and programs available to East Greenwich residents in the coming year. The meeting concluded with a sense of urgency, as council members prepared for further discussions in the weeks ahead, eager to finalize a budget that balances growth with fiscal responsibility.