Proposed Budget Calls For 4% Increase In Property Tax Rate

According to a proposed town spending plan for fiscal year 2011-12, property taxes could increase 4.139 percent from this year's rate.

Town Mananger Bill Sequino released his proposed budget for fiscal year 2011/12 on Friday. The proposal calls for a $.71 increase to the tax rate, from $17.25 per thousand dollars of assessed property to $17.96. Under this spending plan, a resident who owns a home worth $350,000 would pay $6,286 in property taxes next fiscal year compared to $6,037.50 this year, a difference of $248.50.

Sequino's budget plan calls for an additional $2 million in spending, an increase of 6.35 percent from last year. However, because the town anticipates using about $859,000 of federal funding from the American Recovery and Reinvestment Act, better known as the economic stimulus money, to offset the $1.5 increase in debt service to pay various public construction projects, the property owners in East Greenwich won't have to absorb all of that increase.

But increases to municipal employee benefits, pensions and compensation will add more than $750,000 to next fiscal year's spending plan, if adopted by the Town Council in May and the voters of East Greenwich at the annual Town Financial meeting on June 14.

According to Sequino's proposed budget, employee benefits will increase by 23 percent, or roughly $500,000. Because many municipal employees are slated to receive pay raises this year after two years without cost-of-living increases, overall employee compensation is slated to increase by about $250,000 under Sequino's spending plan.

Much of this increase will go to the police and public works department. The proposed budget, according to Sequino's budget message, will add at least one police officer and increase staff spending by $133,171, a proposed increase of about 5 percent from this fiscal year. Public works will add a mechanic for half a year and increase its staff funding by $66,562, a proposed increase of 5.85 percent from this year.

The only town department not anticipated to increase its employee salary costs is the Town Clerk's office. Sequino is suggesting that office reduce its staffing level by one employee for a net savings of $23,618 on staff, or a proposed cut of 9.4 percent on staffing.

Town Clerk Leigh Botello said she thinks her office can operate with one fewer employee.

"We're in the process of reviewing some procedures," she said, noting that technological improvements could make it possible to offer the same level of services with fewer employees.

Sequino, who also offered any town employee a retirement incentive of $250 per year of service, said he anticipates there will a retirement rather than a lay-off in the clerk's office. Two clerks, Nancy Verrier and Judy Keenan, both have enough longevity with the town to be able to retire with a full pension.

The Town Council and the School Committee are scheduled to have their first joint budget session tonight at 8 p.m. at Swift Community Center. There is a public hearing on the budget scheduled for next Monday night. The Council must adopt the budget by May 15 and the Financial Town Meeting is scheduled for June 14.