Narragansett council hears town manager's FY2025-26 budget pitch proposing 4% levy increase, work sessions set

Town Manager Jim Tierney presented the town's proposed fiscal 2025-26 general fund budget at the April 7 Narragansett Town Council meeting, saying the plan relies on a 4% tax-levy increase and would set the proposed residential tax rate at $6.79 per $1,000 of assessed value.

Tierney said the 4% levy increase represents about $2.4 million in additional revenue and would translate to roughly a $178 annual increase for an average home assessed at $742,000. He told the council the town's unassigned fund balance was $15 million, or about 22.3 percent, as of 6/30/24 and that the draft budget anticipates using about $2.283 million of reserves in 2026 to absorb higher personnel and utility costs.

The presentation focused on the general fund, which Tierney said is primarily tax-supported; he said the school transfer accounts for about 40 percent of the budget and salaries and benefits about 38 percent. Tierney said he trimmed the capital improvement plan to $2.291 million from departments' requests of roughly $5.3 million and reduced the town's operating budget by about $333,000.

Why it matters: The draft budget sets the overall spending and levy direction for the year and determines department allocations, capital projects and the tax burden on year-round residents. The council must adopt a final budget in June after public hearings and work sessions.

Tierney noted other revenue risks to watch: outstanding state aid amounts, proposed state legislation affecting local meal-and-beverage revenue and veteran property exemptions, and the town's limited ability to issue unbudgeted debt without specific appropriation. He also flagged rental-registration and short-term-rental policy issues that will be addressed in upcoming work sessions.

Council work plan and next steps: The council scheduled budget work sessions for April 15 and additional dates to review department requests, capital projects and potential debt. Tierney and Council President Menzies urged residents to attend the sessions and to submit questions in advance. The council held a public hearing April 7 and closed that hearing; a second public hearing was announced for May 5, with first and final readings set on the council calendar in May and June.

Reactions from officials and the public: Menzies praised the comprehensive presentation and encouraged community participation in the work sessions. Dr. Al Alba, a resident, asked the town to study the potential costs and financing options if the town's wastewater infrastructure requires major repairs in future years and suggested examining surcharges for short-term rentals as a resilience fund.

What the budget would change now: The draft proposes a higher tax levy to avoid deeper draws on reserves in later years; Tierney's forecasts illustrated how a lower levy growth rate would increase fund-balance use over time.

The council will continue department-by-department budget review in the April work sessions and revisit revenues and capital needs before a final vote in June.