State official: Coventry qualifies for distressed‑communities aid; town to receive about $670,000 in FY26

Steve Coleman, chief of the Rhode Island Division of Municipal Finance, told the Coventry Town Council that the state has identified Coventry as eligible for distressed‑communities aid based on its metrics and will allocate an initial fifty percent payment in fiscal year 2026.

Coleman explained the program uses four indices calculated from 2021 assessment data, American Community Survey population and income figures, and municipal levies adjusted for fire districts and PILOTs. A municipality must rank in the bottom 20 percent on at least three of the four indices to qualify. Coventry ranked (by Coleman’s presentation) fifth on percent of tax levy to full value, 16th on per capita income, seventh on percent of personal income to full value, and seventh on per‑capita full value; on that basis it met the threshold to qualify this year.

Under the statutory appropriation for the program, Coleman said the statewide appropriation for qualifying municipalities totals $12.8 million. Because Coventry is a new entrant this year the town will initially receive roughly 50 percent of its calculated share—about $670,000 for FY26. Coleman said the full allocation for Coventry (100 percent) would be roughly $1.3 million if the town again qualifies in a future year; he cautioned that the program appropriation is fixed and new entrants reduce other participants’ shares.

Coleman also explained timing and practicalities: the distribution for FY26 would be made by Aug. 31, 2025, and the data used in the calculation (12/31/21 assessments and 2023 ACS data pulled in December 2024) means year‑to‑year qualification can change. He noted municipalities often enter and exit the program from year to year. He described additional benefits for distressed towns in state reimbursement rules for reevaluations (eligible distressed towns can receive a larger share of the cost of statistical updates or full revaluations).

Councilors asked clarifying questions about how assessment freezes and tax‑exemptions affect the full‑value calculations and about the effect of the mix of residential/commercial tax base. Coleman said the division performs a statewide equalization study, adjusts for sales and frozen assessments, and produces the indices on a consistent basis so municipalities are comparable.

Why it matters: The initial allocation is material to Coventry’s FY26 revenue planning and could reduce the net tax‑rate pressure on homeowners if the council budgets with the FY26 payment in hand. Because the appropriation is static, new entrants reduce other municipalities’ shares; Coleman warned the town that FY27 participation and the exact allocation will depend on updated data.

Next steps: Coleman identified municipal finance staff (Kim O’Donnell and Diana Mendez) as points of contact for documentation and said the town manager and finance director should work with the division to complete budget‑disclosure steps required for distribution.

Ending: Councilors said they welcomed the guidance and would incorporate the FY26 allocation into the provisional budget and upcoming public hearings.