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North Providence mayor proposes 60¢ per $1,000 tax increase after hospital sale; council accepts budget
Summary
Mayor Charles A. Lombardi submitted a FY 2026 proposed budget that includes a 60¢ per $1,000 increase to offset the tax-exempt sale of Our Lady of Fatima Hospital; the town council voted to accept the budget as presented.
Mayor Charles A. Lombardi submitted the proposed fiscal year 2026 budget to the North Providence Town Council on May 6, 2025, saying the town faces a multi‑million dollar revenue shortfall after the bankruptcy of Prospect Charter Care and the purchase of Our Lady of Fatima Hospital by a nonprofit that will render the property tax‑exempt.
In a letter read into the record by Marilyn Boddy, the administration said the hospital’s bankruptcy and subsequent asset sale will produce a revenue loss of $1,884,224 in the current fiscal year and an anticipated $3,534,259 loss in fiscal year 2026. To partially offset that gap, the proposed budget includes a tax increase of $0.60 per $1,000 of assessed value. Boddy also said the mayor is engaging the legislative delegation and the governor’s office to pursue budget amendments that could reduce the impact.
The budget presentation said the administration will use American Rescue Plan Act funds and other sources to fund capital work including two new elementary schools, resurfacing and drainage design work, tennis‑court restoration at Ritchie Middle School, and upgrades to windows and entry doors at Town Hall. Lombardi’s letter described the two elementary schools as newly constructed, “state of the art” facilities, and framed the budget as intended to sustain essential operations while addressing the hospital‑related revenue loss.
Councilman Famighetti moved to accept the budget as presented; Councilman DiLorenzo seconded. The council voted in favor; the motion carried.
What happened: The administration presented a balanced budget proposal that relies in part on a local property‑tax rate increase to cover an anticipated multi‑million dollar revenue loss tied to the sale of Our Lady of Fatima Hospital. The council voted to accept the proposed budget and will continue formal budget work through the council process.
What remains open: The mayor said he will continue to press the state delegation and governor’s office for amendments that could mitigate the revenue shortfall. Specific net impacts on an individual homeowner’s bill were not included in the presentation and were not specified in the council discussion.
Quotes: “This fiscal year presents a unique challenge due to circumstances beyond our direct control,” Marilyn Boddy read from the mayor’s letter. “To offset this loss, the proposed budget includes a tax increase of 60¢ per thousand of assessed value.”
Ending: The council accepted the proposed fiscal year 2026 budget on May 6; additional budget hearings or amendments may follow in the council process as the administration and council consider state‑level options to address the shortfall.
