South Kingstown presents FY2025–26 budget with bigger debt service for new high school; revaluation lowers tax rate

South Kingstown officials on April 15 presented a proposed FY2025–26 budget that would raise the townwide property tax levy while showing a lower tax rate per $1,000 because of a large revaluation.

Town Manager Jim Manny and Finance Director Brian Sylvia told the joint Town Council and School Committee that the all‑funds budget totals roughly $111.6 million and that the proposed property tax levy would be $78,987,000 — an increase of about $2,320,000, or roughly 3.03 percent, from the prior year. At the same time the town’s estimated net assessed value rose to about $8,754,000,000 after the revaluation, a roughly $1.8 billion (about 26 percent) increase in the taxable base.

The revaluation reduces the rate per $1,000 from the most recent figure of about $11.05 to an estimated $9.00 per $1,000, Finance Director Brian Sylvia said; Manny and Sylvia cautioned that final rates can change as petitions, abatements and final figures are processed. “The final action on the budget by the town council shall occur on or before May 1 of each year,” Town Manager Jim Manny said as he reviewed the calendar and hearing schedule.

Why it matters: the levy increase is being driven largely by education debt service tied to construction of the new high school. The debt service fund is projected to grow to about $3.5 million from roughly $1.7 million — a near 97 percent increase — because of bond anticipation notes and early‑stage borrowing tied to the school project.

Key budget items and drivers - Debt and bonds: Officials said the town anticipates issuing bond anticipation notes (BANs) for the first year of the high‑school construction estimated at $61,000,000 with an assumed BAN interest rate of 3 percent; projected interest for the BAN year was presented at about $1.8 million. Town staff outlined a timeline that includes a bond rating call with Moody’s and a competitive sale in June. - School transfer and one‑time items: The proposed tax transfer to schools was listed as $55,994,000 (no change from the prior year). The schools’ operating budget is proposed at about $63.26 million; Brian Sylvia said the schools will also receive a $608,000 transfer from the town’s Healthcare Management Fund that the town’s auditors and the finance director have characterized as a one‑time revenue source that “would not raise the maintenance of effort for future years.” - Personnel and positions: The town manager said the proposed operating budget includes a net increase of approximately two full‑time equivalent positions, including a parks maintenance technician and staffing additions for a new EMS station. Officials said the new EMS station will ultimately need eight EMS personnel when fully staffed; the budget includes phased additions to reach that staffing level and reduce overtime. Police civilian positions were consolidated into a new public safety data technology technician position after retirements; Manny and Sylvia said those changes yield roughly $700,000 in personnel savings compared with earlier proposals. - Fund balances and collection assumptions: The town’s undesignated fund balance was reported at about $16.77 million (about 18.46 percent of operating revenues). Staff are using a 98.75 percent collection rate in projections; small changes in collection assumptions and revaluation outcomes were noted as items that could affect the final rate.

Process and calendar Manny reviewed the required steps and deadlines: the April 15 hearing was the first of two required public hearings on the preliminary budget; the second hearing was scheduled for April 17 at 7 p.m. Petitions for revisions to the preliminary budget and signature thresholds were explained, and staff said the council must adopt a final budget on or before May 1.

What officials said - On the one‑time transfer to schools: Finance Director Brian Sylvia said the $608,000 transfer from the Healthcare Management Fund is “considered a one‑time revenue source” and that he had consulted with appropriate auditors and officials to confirm how it is treated for maintenance‑of‑effort accounting. - On the BANs and bond timeline: staff presented preliminary dates for Moody’s and for a competitive sale, and said final dates may shift as paperwork and underwriting are completed.

Background and next steps Officials emphasized that debt service associated with the new high school is the main driver of the levy increase. The council and school committee will receive updated information before the next hearing and the May adoption; staff said they will report any changes in the revaluation appeals and updated levy calculations as they become available.

Ending Council members and school committee members used the remainder of the meeting to ask for more detail on specific line items, funding sources and timelines; staff said detailed slides and supporting schedules will be available at subsequent meetings and on the town’s budget webpage.