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Finance director: strong tax collections, higher interest income and $1.9M surplus reported
Summary
North Kingstown Finance Director reported higher-than-expected tax collections, over $2 million in interest income, and an estimated $1.9 million surplus (about 1.6% of the budget). She said the rescue-billing fund provides an annual allocation (about $600,000) to support rescue operations and equipment.
North Kingstown’s Finance Director (Deborah, last name not specified in the transcript) told the council the town is collecting property taxes at rates above budget expectations and earning significantly more interest income than projected.
Collection rates reported were: real estate 98.9%, personal property 94.2% and commercial 98.6%. The finance director said some tax-sale receipts and penalty income have also come in higher than anticipated and that the office continues to work on 60-day collections through July and August.
Deborah said the town’s interest income has been unusually strong this year — she referenced “over $2,000,000” in interest income — and that she negotiated a higher rate on the town’s operating account. As a result, the town is in a positive position heading into the audit.
She told the council the town’s audit is underway and that the preliminary surplus is about $1,900,000, roughly 1.6% of the total annual budget. She said she will provide more detailed figures and an itemized report to the council at the next meeting and will add the surplus figure to future reports.
On emergency services financing, Deborah explained the rescue-billing fund mechanism: the town receives billing revenue and allocates a fixed amount to the operating budget each year (about $600,000), and the fire/rescue department uses remaining billing receipts to fund equipment purchases and capital needs.
Council members praised the new report format and asked for department-level line items; Deborah said she could provide more detailed department breakdowns and five-year planning figures for the rescue fund at a future meeting.
