City At The 'Brink of Financial Ruin'

In addition to talk regarding transportation projects, school department finances and liquor licenses at Wednesday's city council meeting, City Manager Peter Graczykowski explained a deficit reduction plan will shave off $1.5 million from the projected budget deficit. 

7:31 p.m. - The meeting started.

City Planner to Apply for TIP Project Money

7:49 p.m. - Planning Director Jeanne Boyle said three new road projects are being proposed including renovations to Pawtucket Avenue. Federal plans to support transportation funding are more scarce, she said; about $40 million is available statewide for transportation programs. Her department has submitted a prioritized list that will be on the Transportation Improvement Program (TIP). Councilors pass an ordinance to support the plan unanimously.

Liquor License Approvals Withheld

8:03 p.m. - Councilors passed a motion to remove local businesses, , and from a list that will renew annual liquor licenses pending their debt to vendors is paid off. The mayor recused himself on a vote regarding the renewal of a Horton's Seafood liquor license.

Mandatory School Department Reports to be Submitted to Council

8:07 p.m. - Councilor William J. Conley Jr. is proposing an ordinance to allow the city's finance director to receive the school department's monthly finance reports to create accountability and communication between the two boards. There also will be a quarterly report so the city can track budget deficits. "It provides enhanced scrutiny," Conley said.

8:24 p.m. - Councilor Michael D. DiGioia asks the board to support the motion. "We're on the brink of financial ruin...There have been problems in the past...This ordinance addresses these problems," he said. Residents asked councilors to make sure accruals are included in the budget reports.

Budget Transparency

8:29 p.m. - According to state law, municipalities can increase state taxes by 4.25 percent annually without a state approved waiver. According to Councilor Conley, council members approved a budget last year that increased taxes by 8.7 percent, but it was never disclosed to the public. "[The city] blew through the maximum levy in secret," Conley said. He also said no finance documents regarding the process were in city hall.

8:36 p.m. - DiGioia wants to support the ordinance. "This has to stop. The people weren't aware of it. This is to protect the people, open government, transparent government." The motion is approved unanimously.

City Manager's Deficit Reduction Plan

8:40 p.m. - City Manager Peter Graczykowski would like to approve new hires. He would also like to implement department meetings. A deficit reduction plan is one of his biggest endeavors. Options to help reduce costs include: consolidating city departments, collecting overdue taxes and fees, reducing school department costs, making sure those who receive city insurance plans are eligible, managing workers' compensation properly, and streamlining recycling processes. "Those are some of the things that will help us get through," he said.

8:47 p.m. - According to Finance Director Ellen Eggeman, 13 percent of the annual budget has not been spent; therefore approximately $9 million is still available. She estimates the city manager's proposals will save about $1.5 million.

Public Initiatives

9:13 p.m. - Energy Smart East Providence will be doing some door knocking starting Nov. 6 to educate the public on how to save money while saving energy. National Grid will help offset costs of projects.

9:21 p.m. - The meeting is adjourned.

Editor's note: A liquor license for Horton's Seafood was approved in a separate motion.