Warwick committee advances police, municipal and fire agreements with phased OPEB contributions

The Warwick City Finance Committee on Jan. 13 advanced three labor agreements for ratification by the full city council, moving contracts for the Warwick Fraternal Order of Police Lodge 7, Council 94 Local 16-51 (municipal employees) and a memorandum of agreement with Local 2748 (firefighters) to the floor without a committee recommendation.

Committee members and city officials framed the agreements as a first step toward addressing the city—s long-term retiree-health liabilities while also responding to recruitment and retention pressures in public safety and skilled municipal roles.

Bill Vicente, chief of staff to Mayor Frank Bacozzi, told the committee that the contracting parties reached a negotiated package meant to balance recruitment needs and the city—s finances. "The agreement includes modest salary increases for the hardworking members of the Warwick Police Department," Vicente said, and he noted the inclusion of employee contributions to an OPEB trust.

Why it matters: Warwick—s actuarial reports show a multi-hundred-million-dollar unfunded liability for retiree health benefits; the administration and union negotiators said a phased employee contribution will begin the prefunding of an OPEB trust while limiting immediate take-home-pay impacts. Opponents on the council said the phase-in leaves substantial money "on the table" compared with an immediate contribution and questioned whether the pace will materially improve the city—s long-term finances.

Key terms and fiscal details - Police (FOP Lodge 7): contract raises are scheduled in multiple steps, cumulatively described in the fiscal note as a 13.25% raise over the life of the agreement. The FOP will begin phased OPEB with employee withholdings of 0.66% (01/01/2025), ~0.67% (01/01/2026) and ~0.67% (01/01/2027) for a cumulative 2% by the end of the contract. Vicente summarized those OPEB numbers as a total cumulative OPEB deduction of 2% over the contract term. (Figures as stated by administration in the committee presentation.)

- Municipal (Council 94 Local 16-51): the municipal bargaining unit—s raises total 11.45% across the contract term; the same phased OPEB schedule was negotiated, producing a similar 2% cumulative employee contribution by contract end. The administration—s fiscal note lists net general-fund costs for the municipal contract in fiscal years 2025—27 after accounting for the phased OPEB contribution.

- Fire (Local 2748) memorandum of agreement: the fire contract, already negotiated earlier, included a 2% OPEB contribution; the MOA advanced by the administration aligns the firefighters— schedule with the other two unions for parity in the phased schedule.

Administration and union positions Bruce Kaiser, director of economic development who helped with financial analysis, told the committee that the administration treated the employee OPEB deductions as a cost avoidance for the city: "That is a cost avoidance for the city," he said, noting the objective of limiting future general-fund obligations. Kaiser said the city has set aside roughly $4.6 million in the OPEB trust to date and that full phasing of the employee contributions across all contracts would add about $1.2—1.3 million per year at current salary bases.

Union leaders urged ratification. Jeddediah Iapino, president of Warwick FOP Lodge 7, said the agreement represented compromise and repeated concessions by the union: "This agreement represents more than just a document. It's a testament to the decades of collaboration between the union and the administration," he said, emphasizing recruitment and retention pressures.

Colonel Brad Connors, representing police operations, said pay and improved take-home wages matter for retaining officers and for recruiting laterals: "If you want quality policing, quality officers that are well trained and well equipped, you can't nickel and dime," Connors said.

Council debate and concerns Council members were split. Councilman Jeremy Ricks and others pressed for an immediate 2% employee contribution beginning Jan. 1, 2025, arguing that the phased schedule leaves hundreds of thousands of dollars uncollected in the near term that could have been invested in the OPEB trust. "It's a matter of...leaving money on the table," Ricks said during the committee and floor discussion.

Opposing voices said an immediate 2% would have been a steep hit to paychecks and that a phased approach was a reasonable compromise to secure agreement across multiple bargaining units. Councilman Brian Napa argued the contracts were negotiated in good faith and that gradual steps are an appropriate fiscal strategy.

Votes at a glance - PCR 17-25 (Warwick Lodge No. 7, FOP) — Committee: moved to the full council without recommendation; Full council: ratified (motion and roll-call vote taken during the Jan. 13 council meeting). Outcome: approved. - PCR 18-25 (Council 94, Local 16-51) — Committee: moved to the full council without recommendation; Full council: ratified. Outcome: approved. - PCR 19-25 (Local 2748, firefighters MOA re: employee benefits trust fund) — Committee: moved to the full council without recommendation; Full council: ratified. Outcome: approved.

What the agreements do not do The contracts as presented do not eliminate the city—s OPEB liability. Administration witnesses and union leaders described the negotiated employee contributions as an initial, phased step to begin prefunding; several council members said the phased schedule is insufficient compared with actuarial recommendations that employees contribute a larger share over time.

Outlook All three items were advanced to the council floor for ratification and public comment. Administration officials told the committee they expect continued negotiation and future opportunities to increase the city—s prefunding level as both the OPEB trust grows and future contracts are negotiated.

Sources: Committee testimony and fiscal notes presented Jan. 13, 2025 (statements by Bill Vicente, Bruce Kaiser, Jeddediah Iapino, Colonel Brad Connors), and the city—s fiscal note figures as read into the record.