Narragansett council holds second public hearing on $73.5 million 2025–26 budget, proposes 4% levy cap

The Narragansett Town Council on May 5 opened the second public hearing on the town manager’s proposed fiscal 2025–26 budget, which the town staff presented at $73,546,679 and that relies on using about $2,280,000 of the town’s unassigned fund balance to balance the plan.

Town staff said the budget assumes the town will increase the tax levy by the legal maximum of 4 percent; using that levy the presentation showed the residential tax rate at about $6.79 per $1,000 of assessed value and the commercial rate at about $9.17 per $1,000. The budget forecast included a projected full revaluation in 2028 and state funding uncertainties that could affect revenues.

The proposed budget uses roughly $2.28 million of the town’s unassigned fund balance (presented as about $15 million as of June 30, 2024) and lists transfers and salaries as the largest expense categories. The staff presentation also noted several specific appropriation requests and adjustments since the first public hearing: transfers to Kinney Bungalow ($25,000), Sunset Farms ($10,000) and Pear Marketplace ($25,000); two new special appropriations (Universal Juice $2,000 and St. Peter’s Community Market $5,000); and a proposed Community Development matching amount of $57,500 for a Small Neighborhood Program grant. The budget also reflects higher healthcare costs and staffing turnover adjustments.

"As of 06/30/2024, we have a little over $15,000,000 in our unassigned fund balance," a town staff member who presented the budget told the council. The presenter explained that lowering the tax levy growth to 2 percent would require much larger uses of the fund balance in coming years and that the 4 percent scenario reduces the need to draw on reserves in later years.

Councilors and dozens of members of the public questioned and commented on priorities in the plan. Speakers urged spending on playgrounds and recreation (some asked that planned pickleball funds be redirected to modern playground equipment and improvements), asked the council to address the long-term decline in school enrollment and pressed for clarity on how police costs related to rental registration and enforcement are funded. Several residents urged strategies to attract and retain families to stabilize school enrollment.

Council members set the next steps on the budget timeline: a capital improvement plan resolution and the budget ordinance first reading scheduled for May 19, followed by a second reading and formal adoption on June 2.

The council closed the budget hearing later in the evening after public comment and returned to other agenda business.

Local officials said they will take additional follow-up questions from councilors and may call department heads back for clarifying information before the June adoption vote.