Letter: A Vote for Fiscal Responsibility

At the May 13, 2013, Coventry Town Council meeting I, along with District 2 Town Councilman Greg Labossionere, voted against approving the 2013-2014 Coventry Town Budget that will be presented to the voters at the upcoming Financial Town Meeting on June 11th. 

As a candidate for Town Council last November I pledged that I would vote for "fiscal responsibility", and to me this budget is the exact opposite of that. The new budget is an increase of $3,540,687 from the 2012-2013 budget. The tax levy of $62.3 million would go up to $64.6 million - an increase of nearly $2.3 million. This increase means a proposed tax rate increase of 3.5%, increasing the residential tax rate from $18.06 per thousand to $18.69 for property valuations. Additionally, the commercial rate would increase from $21.76 per thousand to $22.52 in valuation.  These increases would be needed to "maintain" existing town services.

The greatest impact to the Town's expenditures will be the growing pension liabilities. The self-insurance fund is now depleted and $2 million was taken out of reserves to put towards the pension fund. Currently we are nowhere near the Annual Required Contribution (ARC) payment to the Pension plans. Pension plans which are under 60% funded (both the Police and Municipal Employees Pensions are) are deemed to be in "critical status" by the State Pension Plans Study Commission. I feel that in order to address the pension issue some serious cuts need to be made to the budget in order to help fulfill the obligations which previous Councils made.

The 2013-2014 budget would leave the Town's reserves close to 10% of the total budget which could seriously affect the Town's bond rating in the future.

And, let's not forget the given by the Town Council to the Central Coventry Fire District which has no repayment date as yet.

While campaigning last November, I met many constituents who told me how they have had to adjust their own personal family budgets to meet the increasing costs of day-to-day living. Is it not common sense and fiscally responsible that when income cannot cover spending then spending must decrease? Is the only way for the Town of Coventry to cover expenses, to increase taxes? Of course, there are costs which increase which we have no control over (utilities for one) but costs must be cut in order to "maintain services". 

I urge all Coventry voters to visit the Town website (www.coventryri.org/budgets-financial-data) to read the proposed 2013-2014 budgets - both Town and School Board - and then come to the Financial Town Meeting on June 11th at 7 p.m. at Coventry High School with your questions.

Sincerely,

Karen Carlson

District 1, Town Council