West Warwick reviews FY2026 budget proposal as pension, insurance and school costs drive increase

Town Manager Mark opened the West Warwick fiscal 2026 budget workshop on Monday, saying the meeting was the second public workshop where the council and the public begin reviewing the proposed FY2026 budget.

The town manager presented a proposal that he said increases the overall budget by slightly more than $5,900,000, including roughly $1,700,000 in municipal expenses, about $3,100,000 for school state-aid pass-through appropriations and a requested $991,000 increase to the school department appropriation. He said the levy increase was calculated at 4% under one revision and that the estimated tax rate noted in earlier materials had moved from 2.45 to about 2.38 per $1,000 of assessed value as tangible returns are updated.

Town Manager Mark said the proposal assumes a 97% tax-collection rate and that the town is not planning to use fund balance in the FY2026 budget. He also noted several cost pressures: employer rates from the Employee Retirement System of Rhode Island (ERSRI) have increased and were applied to pensionable salaries; healthcare premiums rose about 5.2%; property and liability insurance increased about 7.5%; and workers' compensation expenses rose because of a slightly higher experience modification.

Why it matters: the combined effect of pension rate changes, higher insurance and healthcare costs, and required school pass-throughs are the principal drivers of the town's proposed spending increase, the town manager said. To limit tax pressure, he eliminated department capital requests totaling roughly $1.2 million in the proposed plan and said capital items might be restored only if state, federal or private grant funds become available.

Department highlights and requests

Senior services: The West Warwick senior center director, Manny, said the center asked the town manager to increase its budget by $45,000 to restore payroll and building maintenance capacity after recent grant reductions. "I did approach the town manager and ask that our budget be increased by $45,000," Manny said. He told the council the center already reduced payroll and cut two classes to save about $60,000 and eliminated a bus driver; the requested funds would go into the senior center's general fund to help with payroll and HVAC maintenance. Manny said the center spent about $12,000 between last January and this January on HVAC repairs. He said restoring one driver would permit the center to resume twice-monthly shopping trips that serve residents in housing complexes including Clyde Towers and The Manor.

Public safety: The West Warwick Police Department's budget, presented by Chief Jim, includes increases tied to contractual obligations. Chief Jim said most line-item increases are contractual or fixed costs; the department requested a $10,000 increase for shift-differential pay and a $3,500 increase for a specific software contract. "This budget includes increases which satisfy contractual obligations and other nondiscretionary costs," he told councilors.

The fire department reported a budget about 10% higher than the prior year. The fire chief said the increase reflects an 8% contractual salary adjustment, a roughly 25% increase in pension costs, an 8% increase in medical expenses and higher payroll taxes. The chief said the department remains short three positions but has two new hires entering the municipal fire academy next week.

Public works and capital projects: DPW Director Jeff summarized drainage, manhole and winter maintenance work completed over the year. He told the council winter costs are highly variable and remain the department's most difficult-to-budget line item. Several street-repair applications were discussed: the chief noted FEMA applications related to storm damage that include a Test Street request of about $257,000, a Golf Street request of about $83,000 and a New Light Street request of about $35,000; the town expects about 75% reimbursement on those applications if awarded. The town manager said one outstanding step on Greenbush work is an exemption from DEM.

Other items: department heads described program-level cuts, small increases in software or postage lines, and trimmed capital requests that the manager eliminated from the proposal. The town's employee assistance program is administered through Coastline EAP, and the town expects a small refund from a new trust agreement; the town manager said ARPA funds are no longer available.

Council discussion and next steps

Councilors expressed concern about positions and long-term tax pressure. One councilor noted local households are strained by property tax burdens and urged careful prioritization of positions and spending. The solicitor and finance staff discussed whether to budget for potential judgment settlements; the council considered using interest-bearing general-fund accounts rather than an operational contingency line.

The council set the public schedule for final budget consideration: public hearings on the budget will be held during the first two Tuesdays in April (with the April 1 meeting also a regular council meeting), a regular council meeting is scheduled May 6, and the anticipated FY2026 vote is set for May 8.

The workshop included detailed line-item review by department heads; no formal final vote on the FY2026 budget occurred at the workshop. The council directed staff to publish the public-hearing dates and continue public outreach before formal adjustments are made.

Ending: The town manager and finance director Kristen Benoit will continue to refine revenue and expenditure estimates, and department heads will await decisions about restoring capital requests or other funds if external grants or state reimbursements materialize.