New schools help fuel tax increase in Pawtucket

For the average homeowner, the annual tax increase will be about $100. The new residential tax rate, if the budget is approved as is, would be $17.11 per $1,000 of assessed residential property value, up from $16.58 currently. That residential rate would put Pawtucket at about 18th in the state.

For commercial property owners, the proposed new tax rate is $29.94, up from the current $29.02 per $1,000 of value.

“We’re fully committed to providing the best possible services for taxpayers at a price they can afford,” said Grebien in a statement this week. “I’m proud of the investments taking place in our schools and roads. I also want to thank the Pawtucket City Council for their commitment to investing in our city, particularly to the Animal Shelter operation.”

Grebien’s proposed budget, which heads to the City Council for review this week, factors in a number of major initiatives, including debt service for the new Winters Elementary School, the start of Baldwin School Construction, and preparing for new high school bonds while also reinvesting in Shea High School at the School Committee’s request.

Other initiatives include:

• Investing in fire and rescue services under a new fire union contract;

• Investing in a community liaison, health equity leader and other ongoing community-based public safety initiatives, including the Family Services Go Team;

• Making quality of life investments in parks and recreation facilities and on code enforcement, including the new Veterans Park Dog Park, continued paving, and transitioning to direct hauling for trash and recycling (the transfer station will now only be open for residential drop-off as of July 1);

• Renovation of Fire Station 1, which is expected to take about a year;

• And additional improvements to the animal shelter and senior services.

Pawtucket is now losing about $4.4 million in tax collections on the car tax phaseout, and the $3.5 million in additional state aid comes up about $1 million short on closing the gap.

The city will again use $2 million in American Rescue Plan Act funding for revenue replacement, as officials did last year. The city is seeing $2.6 million more in total real estate tax revenues, and $900,000 more in tangible revenues due to increased values.

Grebien is proposing a $500,000 school debt service offset, meaning the city would be contributing $500,000 more per year in baseline funds to the School Department in exchange for a $1 million one-time debt payment.

The city is also seeing a reduction in revenues of about $425,000 due to increased compliance as fewer people run red lights, a great thing for public safety, said Chief of Staff Dylan Zelazo, but an impact to the budget.

Major expenditure changes for the next fiscal year compared to the current one include:

• A $550,000 increase in trash collection fees due to direct hauling to the landfill;

• A $500,000 increase in school operating funds;

• An approximate $700,000 lease payment for vehicle acquisitions, mainly for public safety;

• A $325,000 combined increase in animal shelter and senior center budgets, mostly for increased staffing;

• Contractual salary increases of about $1.3 million;

• About $870,000 in health care cost savings;

• About $200,000 in increased IT investments and increased utility costs;

• A one-time $300,000 cost for a revaluation of properties, to be done over the coming year;

• City property insurance and maintenance being up by about $400,000;

• And a $475,000 increase in fire and police overtime costs and $405,000 for additional public safety recruitment, non-violence programs, and the special tactics team.

The additional significant investment in emergency response is largely for additional command staff to promote effective, efficient, and customer-focused services, said Zelazo.

The property insurance cost being up $400,000 is largely due to the city managing multiple significant properties, including the former McCoy Stadium and former Apex Department store property, he said.