Westerly council reviews proposed $7.20 mill rate, revenue assumptions in FY2025–26 workshop

Westerly — At a special workshop April 9, the Westerly Town Council reviewed the finance board’s proposed fiscal year 2025–26 spending plan and the revenue assumptions that underlie it, including a proposed mill rate of $7.20.

Town manager Sean led the review and told the council “the mill rate we proposed is coming in at 7 20. So it's a 37.2% mill rate drop as a result from the current mill rate because of the current assessment.” The session was a line‑by‑line review for council consensus; the manager reminded members that the meeting would not produce a final tax rate and that a public hearing and final vote are scheduled later in April.

Why it matters: the draft rate reflects changes in property assessments, not an across‑the‑board cut to town revenue. The managers and finance director said the assessment base rose roughly 37.2%, producing a lower mill rate even as the town’s revenue totals remain near the level shown in the proposed budget.

Finance director Sarah walked council through major revenue lines and the assumptions behind them. The budget document lists total projected revenues of about $104,675,022 and matching expenditures at the same headline level. Key points she highlighted:

- Property tax mechanics: The proposed mill rate of $7.20 reflects the county‑wide reassessment; properties whose assessments rose by less than 37.2% would see lower taxes, while properties with larger assessment increases could see tax increases. Sarah also told the council the budget uses an assumed tax collection rate of about 98.7% for the fiscal year, noting that the town’s historical actual collection is closer to 99% because some payments are realized in subsequent years or ultimately collected through tax sale processes.

- Personal property reimbursement: The finance director said state reimbursement for the first $50,000 of personal property now reduces the town’s gross receipts from that line; the state reimburses the town for that exempt portion.

- Transfer tax and other state receipts: Transfer taxes and state pass‑throughs — including the library pass‑through — are shown in the revenue schedule. The manager flagged that the library’s state pass‑through in the draft was listed at $454,393 (the amount the town receives and forwards to the library) and that the finance board recommended a modest $12,500 reduction to the town’s local subsidy to the library compared with the town manager’s initial draft.

Council members asked for clarifications about building‑permit trends, planning and permit fee assumptions, and large one‑time receipts such as proceeds from a property lease. The manager explained the accounting treatment for a prior $3,000,000 lease: auditors require recognizing the revenue over the lease term (25 years) rather than all at once, so only a pro rata portion appears in the operating revenue line each year.

What’s next: Council members asked for more time to review the worksheet packets and the “big book” with five‑year trends. The manager reiterated the workshop’s role as a consensus check and said the formal vote on the FY2025–26 budget and final mill rate will take place at the public hearing on April 22.