City Council Approves Providence’s $583 Million FY 2024 Budget
Providence, RI – The Providence City Council approved the FINAL passage of the city’s $583 million FY 2024 budget tonight by a vote of 12 to 1. The budget, which takes effect on July 1, modifies residential and commercial property tax rates, helps owner-occupied residents, and asks Mayor Brett Smiley to negotiate strong PILOT agreements with tax-exempt institutions to allow for significant investments in improving quality of life issues for city residents. The budget now goes to Mayor Brett Smiley for his signature.
FY 2024 City Budget property taxes:
Residential property tax rate increases to $18.35 per $1,000 (a decrease from the mayor’s proposal of $18.70 but an increase from the current rate of $17.80)
$226 tax increase for the average-priced home ($222 less than the budget proposed in April)
Commercial property tax decreases to $35.10 per $1,000 (an increase from the mayor’s proposal of $34.10 but a decrease from the current rate of $35.40)
Homestead exemption decreases to 43% from the current 45% (increases from the mayor’s proposal of 40%) *Homestead exemption is a tax exemption for those residents living in their homes
FY 2024 Budget highlights include:
$4.1 million in tax savings achieved by the Council
Hiring freeze for new non-essential jobs (This is the result of a $7.1 million shortfall in PILOT, payment in lieu of taxes funds from tax-exempt city hospitals and universities)
$1.5 million allocated for neighborhood infrastructure projects (playgrounds, school buildings, and street safety improvements)
Funding for a lateral Providence Fire Academy and a second Providence Police Academy (to begin approximately in February)
The budget was passed after a thorough vetting by the Council’s Finance Committee, which included over 11 meetings and more than 20 hours of testimony during the last seven weeks. For the first time, the committee held two public hearings in the council chamber, allowing residents to weigh in on the process.
