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West Warwick council approves $125.35 million FY2026 general fund budget, 4-1 vote

3236033 · May 8, 2025
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Summary

The Town Council adopted the fiscal year 2026 general fund budget of $125,348,771, approving a 1.73% tax rate increase (3.7% levy increase) after debate about town surplus levels and future fiscal risk.

The West Warwick Town Council voted 4-1 to adopt the fiscal year 2026 general fund budget, totaling $125,348,771 and effective July 1, 2025. The council recorded a 3.7% increase in the levy and a 1.73% increase in the tax rate for the coming fiscal year.

Council members described the outcome as a narrowly chosen compromise intended to limit the tax burden while preserving reserves. The council noted an increase in median household valuation in West Warwick from about $260,007 a year earlier to approximately $350,008, which the council said translates to roughly $140 more in taxes for an average homeowner under the new rate calculation. Officials said the budget process involved difficult trade-offs and that some departmental requests were reduced or deferred.

During discussion, one council member announced a dissenting vote and urged returning a portion of the town's surplus to taxpayers; other members and the town finance staff described the town's unrestricted fund balance at the end of the last fiscal year as about $7 million and said that represented roughly 7.8% of general fund expenditures. Council members cited the state auditor's trend analysis and recommended reserve targets of about 17% for municipalities; council discussion referenced the town's current position as below that target and argued for maintaining reserves against potential future adverse events.

Council members who spoke in favor described the 1.73% rate increase as modest given rising costs and called the budget fiscally responsible. The adoption was taken by roll call and will stand as the town's FY2026 general fund budget unless amended by a future council action.