South Kingstown council adopts preliminary FY2526 budget, shifts some costs to EMS billing and restricted funds

The South Kingstown Town Council on Monday adopted a preliminary fiscal year 2026 operating budget and a set of staff-recommended staffing and accounting changes intended to limit the tax impact of rising debt-service costs.

Town Manager Jim Manny presented the 2526 preliminary budget, telling the council it is “a very lean budget” that relies on stable collection rates and one-time resources. “There’s a 99% collection rate in this town on the tax levy,” Manny said, arguing that strong collections and oversight support the plan.

Why it matters: the budget packages municipal services, school funding and debt-service obligations into a proposed $111.1 million all‑funds plan. Debt service rises sharply because the town is planning to fund year‑one costs tied to bond anticipation notes for the new high school; staff said that driver alone accounts for most of a $1.74 million increase in the debt-service fund. Finance staff presented a proposed tax rate of $9.04 per $1,000 of assessed value after revaluation, and said that the town’s net assessed value rose about 26% in the revaluation period.

What the council approved: the council voted to adopt the preliminary budget “as outlined” after a council discussion and a listing of consensus adjustments. The council’s actions include: - Approving the preliminary FY2526 budget with the school appropriation recommended in the town manager’s presentation (level funding of the local school transfer in the town manager’s draft); - Endorsing staffing changes presented by staff, including proposed public‑safety and facilities positions described during the presentation; and - Formalizing an understanding that two additional full‑time EMS paramedic positions proposed for next year will be funded by the EMS billing fund rather than by a direct general‑fund tax increase (staff said the EMS billing fund transfer would be increased to cover the incremental cost).

Staff and council details: Finance staff explained the town’s approach to the figures. Brian Silvey (finance staff) walked the council through the tax levy math, noting that the school portion of the levy accounts for roughly 72.3% of the property tax requirement in the draft and that the town portion is about 27.7%. Silvey also said the state’s change to the treatment of tangible property resulted in a statewide lock of the tangible tax rate at 11.05 in the current year; the town is treating that as a fixed input while comparing pre‑ and post‑revaluation tax calculations.

New and proposed positions: the draft budget lists several proposed full‑time equivalents (FTEs). Key items discussed by the council included two full‑time EMS paramedics (staff estimated an incremental FY2526 cost of about $183,000 for two positions and related benefits) tied to a planned new EMS station, and a proposed parks/maintenance technician. Staff said the park position’s gross cost was about $96,000 but that seasonal salary reductions would reduce the net budget impact to about $24,000. Council members pressed staff about whether the EMS hires could be staggered and whether EMS billing revenues could fully absorb the cost; Chief Craig Stanley (South Kingstown EMS) said the new station is expected to open roughly a year from now and that paramedics hired would be certified on hire with standard orientation.

Debt and revaluation: staff reported a large one‑time increase in the debt‑service requirement tied to the town’s plan to borrow for the new high school (bond anticipation notes). The budget shows a 97% increase in the debt-service fund driven by the town’s assumed $62 million borrowing pattern for year‑one construction activity; staff said the net effect on the proposed tax levy was about a 3.37% increase, and that without the revaluation the comparable rate would have looked different.

Restricted and one‑time resources: staff identified a $682,904 balance in a healthcare‑management account that remained after the town moved from the West Bay collaborative and joined the Rhode Island Interlocal Trust. Staff said about $82,000 of that balance relates to the town side and roughly $600,000 to the school side. Council members asked staff to seek a legal opinion and the administrative procedure for transferring those restricted funds into operating revenue; staff said such transfers typically occur by formal council action and that the council could consider applying those restricted dollars to retiree healthcare obligations in FY2526.

Shared services and school items: the council discussed several shared‑service items the school department had listed in its budget request (resource officers, crossing guards, field maintenance, tax software, and certain IT services). Council members expressed differing views on which of those items are fundamentally school responsibilities and which are town services; the council reached informal consensus to shift certain items—town staff recommended moving tax‑software and a portion of computer services to the municipal budget, while leaving school resource officers and crossing guards as school expenses.

Human services funding: the council also reviewed human‑services and outside‑agency funding requests and approved a package of allocations at levels near the manager’s recommendations. The council said it will follow up with some applicants to confirm how one‑time allocations would be used.

Public comment and next steps: residents urged both support for school programs and prudence on the tax impact of the draft; speakers raised concerns about declining enrollment, out‑of‑district tuition costs, and maintenance needs for town cemeteries and roads. The council set additional public hearings on the FY2526 municipal and school budgets in April (April 15 and April 17) and a preliminary deadline for petitions and referendum signatures in May, with the assessor setting the final rate in mid‑June. The council’s preliminary adoption is an interim step: the final operating budget and any ordinance or tax rate will be approved at or after the public hearing and petition period.

Quotes from the meeting: “There's a 99% collection rate in this town on the tax levy,” Town Manager Jim Manny said when opening the presentation, framing the administration’s confidence in the revenue picture. “Tangible property taxes are locked statewide at an adopted rate of 11.05 for the current year,” finance staff Brian Silvey told the council while explaining how revaluation affects the proposed rate.

What the action does not do: the council’s preliminary approval leaves detailed staffing and final revenue assumptions subject to revision at public hearings and to any legal steps required to transfer restricted funds or reassign expenses between school and municipal budgets. Final adoption—and any resulting tax rate—will be decided after the public hearing period, petition windows and the tax assessor’s June calculation.

For residents: staff said a public hearing schedule and the budget document are posted on the Town of South Kingstown website; the council will consider petition submissions and any valid referenda before finalizing the FY2526 budget.

Ending note: council members described the adopted preliminary plan as a constrained document that attempts to limit new tax pressure while addressing public‑safety staffing, debt costs tied to the new high school project and modest municipal service requests. The council left several decisions (use of restricted West Bay funds, final assignment of shared‑service costs, and exact timing for EMS hires) for follow‑up before final adoption.