Budget Commission Nixes Tax Interest Amnesty, Sets Budget Hearing for May 8

The Woonsocket Budget Commission nixed a proposed tax interest amnesty and set a May 8 hearing on the city's $79,136,063 and school $65,771,967 budgets yesterday.

Commission members' discussion of the tax interest amnesty was brief.

City Council President John Ward, who voted against the Council's resolution for the amnesty, noted his vote during the discussion. He reiterated his opinion that it wouldn't generate extra revenue for the city, and said it would cost the city. "We'd simply give up interest by approving this," Ward said.

"It sets an example that it's OK to not pay your taxes, " said Commissioner Peder Schaefer. 

Mayor Leo Fontaine made a motion, "for discussion purposes" to approve in order to discuss the matter further, but the motion died without further support. 

According to an e-mail Celeste sent the Commission April 11, an analysis of the FY 2014 tax levy assuming a 4 percent increase, keeping the existing homestead exemption phase out for 2 and 3-family homes and accelerating the singe family phase out according to the 5-year plan (without factoring in the $2.5 million supplemental tax increase) would produce the following tax rates:

Residential: $32.73

Commercial:$37.38

With the $2.5 million supplemental tax increase, those rates are:

Residential: $34.49

Commercial: $39.79 

(See copies of Celeste's e-mail and a table of the effective tax rates attached to this article)

The Commission also accepted the city's $79,136,063 budget Friday as well as the School Committee's $65,771,967 budget, passed during the Committee's last meeting April 10 after an initial split vote March 27, when two members expressed  line items.

A public hearing on the budgets will be scheduled for May 8, 3 p.m. at City Hall.

The Commission took no action on a resolution from the City Council asking for the Commission to disband. "My suggestion is that we ignore this," said Budget Commission Chairman Bill Sequino.

"I don't think it's really properly before the Commission, as it's presented," said Fontaine.

The Commission also approved the hiring of Joseph Spagna as the School Department's new Director of Finance and Administration. He'll be making $106,000 per year, a figure negotiated with Spagna, said Superintendent Giovanna Donoyan.

The Commission also approved a plan to enact savings the city is attempting to negotiate with unions by July 1 if they aren't agreed to by all parties by that time. The plan was referred to by Mayor Leo Fontaine as a 'Plan B' alternative to successful negotiations. Officials say the concessions are necessary to make the Budget Commission's 5-year plan for the city's solvency, the body's mandated goal, feasible. 

Just before adjourning for the day, the Budget Commission also approved a resolution supporting supplemental tax legislation introduced by Sen. Marc Cote and Roger Picard being reviewed by the Senate Finance Committee at the State House.