Providence Council approves budget on first passage, OKs 5.85% levy increase

The Providence City Council approved the city budget and a 5.85% property tax levy increase on first passage Thursday after more than an hour of debate about who will bear the cost of higher property values.

Councilwoman Anthony, chair of the Finance Committee, told colleagues the council faced “substantial challenges” this year, including a court‑mandated school funding settlement and sharp increases in pension and health costs. “Without the one‑time override of the 4% cap, we would have been forced to make painful cuts to city functions,” she said as she urged support for the amended budget.

The council’s package, approved on roll calls, included the levy increase and the amended budget. The levy measure (item 14) passed for first reading 10–3–2 (ayes, nays, absent); the budget (item 15) passed for first reading 11–2–2. Council members who voted no on the levy but yes on the budget cited disproportionate impacts on some wards.

Why it matters: Chairwoman Anthony said the budget must absorb a roughly $11 million court‑ordered school funding increase this year, a roughly $5 million rise in pension obligations and about $3.4 million in higher employee health costs, plus a $147 million baseline for next year. The council said it capped the mayor’s original levy request and ultimately settled on a 5.85% increase after state action provided additional revenue and after altering tax rates among property classes to shift burdens.

During debate, council members described competing priorities. Councilman Gonsalves said the package was “not the budget that anyone really wanted” but that the version before the body was “significantly better than the one we started with.” Councilman Taylor framed the choice as between raising the levy or making layoffs if the council failed to pass a balanced budget.

Opponents stressed geographic inequities. Councilwoman Peterson and others said single‑family homeowners and residents on fixed incomes in some wards would face steep increases; one councilor said his ward’s calculation showed as much as a roughly 21% increase locally compared with smaller increases elsewhere. Several members urged more targeted relief and long‑term revenue solutions, including pressing the state for tools to tax large nonprofit institutions.

Budget adjustments and clarifications cited in committee included roughly $3.7 million in savings identified in public safety budgets tied to grant‑funded items, elimination of a proposed nightlife manager position, restored funding for a sustainability policy associate (noted as revenue‑generating), and a $300,000 allocation to offset bulky‑item waste pickup fees.

Council members said they expect to return to the issue next year: several speakers urged formation of a tax commission or other measures to seek more stable, long‑term revenue and to examine commercial tax policy and exemptions for large nonprofits.

Votes at a glance

- Item 14 (levy first passage): Passed for first reading by roll call, 10 ayes, 3 nays, 2 absent. (See roll call below.)

- Item 15 (budget first passage): Passed for first reading by roll call, 11 ayes, 2 nays, 2 absent. (See roll call below.)

Roll call summary (as recorded on the transcript)

Item 14 (levy) — aye: Miller; Anderbois; Anthony; Espinal; Gonzales; Graves; Harris; Ryan; Sanchez; Taylor. nay: Peterson; Pichardo; Oscar Vargas. absent: Anna Vargas; Royas. Tally: 10 ayes, 3 nays, 2 absent.

Item 15 (budget) — aye: Miller; Anderbois; Anthony; Espinal; Gonzales; Graves; Harris; Pichardo; Ryan; Sanchez; Taylor. nay: Peterson; Oscar Vargas. absent: Anna Vargas; Royas. Tally: 11 ayes, 2 nays, 2 absent.

What happens next: Both matters cleared first passage and will return for subsequent readings as required. Council members repeatedly framed the vote as a stopgap that preserves city services and avoids immediate layoffs while acknowledging the need for longer‑term tax and spending reforms.

Ending: Council leaders thanked finance committee staff and city clerks for extended work on the package and said they plan additional hearings and possible charters/commissions next year to address revenue, commercial taxation and displacement pressures that members said are accelerating in several neighborhoods.