New Tax Mulled: Prudence Island Water District

PORTSMOUTH, RI — Robert Marshall, operations manager at the Prudence Island Water District, said Tuesday the board plans to start taxing real property for the first time in its history. The change would apply to the Fiscal Year 2018 budget, which goes into effect Oct. 1, he said. The fees would also continue, he indicated.

The new taxes would pay only for debt service, he said. Some long-term debt is part of the district's plan to improve facilities and expand the customer base.

According to Marshall, "the District intends to move to a budget that is based on funding operations with a combination of water service fees and debt service through a District wide tax on real property. This funding
structure is common practice in water districts throughout the State of Rhode Island."

"The District has had the authority to tax real property within the District since its creation through legislative action in 2004," he wrote in a press release. "However, the District has never implemented this authority and instead relied exclusively on collection of semi-annual water service fees to pay for all operating expenses, capital expenses and debt service."

To find out the details, he said, the board has scheduled two public workshops. The first is on July 1 from 1 to 2 p.m. at PIA Hall, 620 Narragansett Ave., Prudence Island; and the second is July 29 from 1 to 2 p.m. at Union Church, 3 Pier Road, Prudence Island.

The Board will also include a public comment item on its agenda for its monthly meeting on July 15 followed by an agenda item to either reaffirm the Board's decision to change its budgetary policy or schedule an August Board Meeting to reach a final decision.

The tax rate would be set on Sept. 16 at the monthly meeting.