Woonsocket Payroll May Run Dry June 29 as Supplemental Tax Bills Linger

Shortly after assuring lawmakers compulsory union contract changes would stick to get supplemental tax legislation raising an extra $2.5 million moving, Budget Commissioners discussed stopgap measures funding June's payroll without it.

Christine Chamberland, city controller, informed the Woonsocket Budget Commission on Monday at City Hall that, without a series of creative accounting measures, the city would be short $2,476,172 on the June 29 payroll.

"Having a supplemental would definitely help," said Jennifer Findlay, CPA and state-appointed financial advisor to the Budget Commission from the RI Division of Municipal Finance Tuesday morning.

Rep. Lisa Baldelli-Hunt (D-Dist. 49) and Sen. Marc Cote (D-Dist. 24) have conditioned moving their supplmental tax bills on good news from the Commission on union negotiations. Both expressed concern that the Commission's compulsory contract changes, on which the 5-year plan may depend, would be challenged in court, and would be ineffective. The legislators met with the Commission in executive session before the Commission's regular meeting Monday. Commissioner and Council President John Ward said they'd assured the legislators the changes would stand up in court.

With a supplemental tax bill in place, the city would be able to secure tax anticipation notes — a short-term loan against the expected revenue, Findlay said.

Tax anticipation notes on the regular July 15 tax roll will also be available, Findlay said, but not until July 1, a few days past the June payroll deadline. Also, Findlay said, the city has used up all of the advance on state aid the Budget Commission approved earlier this year. 

Without the supplemental tax, and failing other remedies, "The last payroll in June may be an issue," Chamberland said.

"If there isn't a plan, then we have to have something on the agenda to move in another direction," said Woonsocket Budget Commissioner Peder Schaefer. Budget Commission members and RI Department of Revenue Director Rosemary Booth Galoogly have noted the alternative to the 5-year plan to solve the city's deficits (in which the supplemental tax plays a significant role) would be receivership.

Chamberland said the City Finance Department has suggested borrowing from the City's Wastewater Fund. Also, she said, Tax Assessor Chris Celeste has contacted the top 10 taxpayers in Woonsocket, asking them to accelerate their 2014 tax payments. "CVS has agreed to do that," Chamberland said.

Findlay told Commission members a detailed spreadsheet on the city's revenues, receivables and expenses would be available to them within the next few days.