Committee holds Foster tax-agreement discussion, asks for additional fiscal detail before action

The committee considered a proposed 10-year tax agreement among the Town of Foster, the Providence Water Supply Board (an enterprise fund), the Providence Public Buildings Authority and the City of Providence that would fix annual payments for certain watershed properties for the next decade.

A staff presenter said the agreement would set annual payments in the range provided in the packet (the speaker cited figures between about $402,950 and $573,005.34, depending on parcels and years) and allow annual escalators up to 4 percent per year. The presenter said the agreement also classifies the properties as forest land and permits a 10-year extension.

Committee members pressed staff for a clearer fiscal comparison showing how much Providence Water (or the city) currently pays in taxes for the properties and what would be paid under the new agreement; several councilors asked for a market-assessment-style analysis that compares the proposed fixed payments to assessed-value taxation to show the net effect for both Foster and the enterprise.

Councilor questions also addressed whether Foster’s use of the revenues is earmarked, whether the town could seek a higher rate via the General Assembly (and what effect that would have on the agreement), and what rules would govern adding additional properties to the agreement if Providence Water acquires more watershed land.

After discussion the committee approved a procedural motion to amend the record to include a signed agreement header and then voted to continue the item to a later meeting to allow staff to provide the requested financial analysis and additional documentation, including comparable agreements and a clear tally of current taxes versus proposed payments.

Committee members said they broadly support protecting watershed land, but indicated they need the comparative numbers and legal confirmation before voting to approve the substitute agreement.