Finance committee reviews $624 million proposed FY2026 budget, details levy increase and new property tax classifications

Director of Finance Sarah Silberia presented the City of Providence's proposed fiscal year 2026 operating budget to the Finance Committee on April 22, outlining a $624,000,000 spending plan and a proposed $425,000,000 property tax levy that represents a roughly 7.5% increase in levy revenue year over year.

Silberia described the budget as balanced and said it includes a $100,000 appropriation to the rainy day fund. She told the committee the total operating budget is about a 1% increase over the prior year and that the levy increase is within the council's guideline (an 8% total levy cap established previously). She said staff found nearly $5,000,000 in additional non-tax revenue and reduced department line items and positions where feasible.

Tax rates and property classifications

Silberia walked the committee through a reclassification of property types and the proposed tax-rate changes that staff used to generate the levy. Highlights presented by Silberia and discussed by councilors include:

- Proposed levy: $425,000,000 (proposed for FY2026) versus the adopted FY2025 levy of about $396,000,000 (a change of roughly $30,000,000). - Total budget: $624,000,000. - Proposed levy increase is supported by an adjusted tax rate and by new/non-tax revenue; staff said most of the balancing increase comes from property tax revenue. - Owner-occupied residential tax rate would move from about $10.46 per $1,000 of assessed value to $8.25 per $1,000 (a reduction in the rate, even as assessed values rose). - Non-owner-occupied residential rate would move from about $18.35 to $14.40 per $1,000. - Properties with 6 to 10 residential units were reclassified into a residential category and shown at $24.50 per $1,000…