When Al Johnson bought his “brand new” home on Edythe Street in 1994 he paid $96,000.
Over the years he’s seen the assessed value of the 800-square-foot house go up. He expected that. After …
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When Al Johnson bought his “brand new” home on Edythe Street in 1994 he paid $96,000.
Over the years he’s seen the assessed value of the 800-square-foot house go up. He expected that. After all, the cost of housing has gone up even accounting for the 2008 precipitous dive in the housing market that left many homeowners owing more on their mortgages than what they could sell their homes for.
But the hot housing market of the past three years has thrown Johnson a curve that has him questioning his plan to retire in several years and spend more time doing what he loves – fishing.
In the recently completed revaluation as of Dec. 31, 2018, the value of Johnson’s shot from $147,900 to $201,200. Johnson thought that was a big increase until he looked around. He thinks he might even be able to get a little more for his house if he wanted to. That’s a plus; however, he has no intention of moving from the secluded dead end off Warwick Avenue across from Morris Farm. So, what does that mean?
Johnson calculated what he would be pay in taxes under Mayor Joseph Solomon’s proposed $323 million budget that will come before the City Council tonight, with hearings slated to continue Wednesday. His real estate tax would jump from $3,076.32 to $3,768.97, an increase of $692.32 or 22 percent.
How could this be when the mayor takes pride in the fact he crafted a budget that calls for less than the 4 percent maximum allowable increase in the levy?
Johnson knows the answer, although that is of no consolation.
An additional $692.32 is like adding a fifth quarterly payment when he hasn’t seen a similar increase in his wages. A mechanic and member of Local 057 of Operating Engineers, Johnson has seen 3 percent wage increases for the past couple of years.
The answer to how Johnson could see a 22 percent increase in his taxes when the tax levy won’t increase by more than 4 percent is based on the new and higher property valuation.
It’s also reflective of what the single housing market has done over the past three years. Houses valued in the range of $130,000 to $200,000 in 2015 are in the greatest demand. That demand pushed up prices disproportional to the rest of the market in Warwick. Houses valued at $400,000 and higher didn’t sell as rapidly in the past three years and those valuations have been virtually static.
Just to be sure he wasn’t getting unfairly hit, Johnson looked at the past and new valuations of all 12 houses on Edythe Street and calculated their taxes based on the proposed budget. He wasn’t alone.
“This is how the budget is going to be made on the smaller people,” he said.
Johnson shared his findings with his neighbors.
“Nobody thought the taxes would increase that much,” he said. He plans to attend tonight’s budget hearing and he expects some neighbors will be accompanying him.
But what can be done?
The home values are the values, says City Tax Assessor Neal Dupuis. In an interview Friday, Dupuis said Vision Government Solutions that performed the revaluation did not look at the previous valuation but rather established a value as of Dec. 31, 2018. Of the city’s 40,000 property valuations, Dupuis said about 1,100 people scheduled an appointment with Vision to review their valuation with about 1,000 actually attending a review.
Dupuis did not have a breakout of what properties experienced the greatest increase in valuations. Overall, the revaluation resulted in a 15 percent increase in the city’s tax rolls.
Generally, as he has said in the past, Dupuis confirmed during a revaluation values increase on about a third of the properties with another third remain the same and the final third seeing a drop.
Johnson accepts that, although he argues the burden of the budget is being shifted to the middle class and those who can least afford it.
Relief, as he sees it, has to come from cutting costs – and one place he would start is with pensions.
While he is a union member and has a pension, he said in recent years pension benefits have been cut. Why can’t that be the case with municipal plans, he asks.
He is annoyed that firefighters are contesting inclusion in the Tier II pension when other municipal employees are in the plan. That’s part of it. He thinks benefits must be reduced for retirees, too.
In one way, Johnson said the demand for his home and ones like it is welcome. His property is worth more. But when it comes to taxes, he’s not happy.
“Let the people win the lottery,” he said, “and let them pay.”
15 comments on this item Please log in to comment by clicking here
Reality
Mr. Johnson is correct...homeowners need to win the lottery to pay their taxes and continue to live in Warwick.
Let me share a little secret with Mr. Johnson, an applicant who is accepted on the WFD becomes an instant millionaire. Their retirement pension and lifetime healthcare will cost the taxpayers well in excess of a million dollars in retirement.
The former chief of WFD is projected to cost the taxpayers over $4 million . This is unsustainable.
This lunacy has to stop. The residents can no longer afford the WFD.
Mayor Solomon must take the bull by the horn and stop this madness. Tell the WFD that your benefits will be cut dramatically or Solomon will find other remedies to stop this fiscal free fall.
Tuesday, May 28, 2019 Report this
Justanidiot
keeps on keepin on. wen da citi finally goes bankrupt, den da fire fighters will be rained in. of course no wons will be living heres any moor so it will be a mute point
Tuesday, May 28, 2019 Report this
Cat2222
It is a crazy catch 22 because our administration didn't do what needed to be done years ago. You can't afford to pay for what was promised so you tack on additional tax to homeowners. Homeowners that can't afford or refuse to pay will cost the city in lost revenue. If you kill the cash cow, where are you going to siphon the money from to pay for all that you gave away?It is beginning to look like young people that are looking to start a family should seek to live elsewhere. I think it is time for me to start researching other cities/towns.
Tuesday, May 28, 2019 Report this
PaulHuff
So Mr. Johnson points fingers at other union members claiming their pensions should be cut, and then complains that the firefighters collectively bargain?
I’m sure his union brothers love him.
Tuesday, May 28, 2019 Report this
RonPaul
This is truly disgusting. My house on Atlantic had its taxes raised by over 25%. That’s another tax bill. They need to lower the rate. This is criminal.
Tuesday, May 28, 2019 Report this
patientman
Johnson accepts that, although he argues the burden of the budget is being shifted to the middle class and those who can least afford it.
Yes, because families that can afford $400,000 & higher houses are choosing other communities to live in. There's a poetic justice to seeing the value of waterfront homes & their taxes falling while the working class see their taxes rise at a ridiculous rate. Warwick is mostly a working class city that has supported Avedisian & the City Council without question. We reap what we sow.
Tuesday, May 28, 2019 Report this
Observant1
Get Real still blaming the WFD you sound like a broken record . The fire dept is definitely not the cause for the cities financial problems as you state . Not sure what the fire department ever did to make you so scorned, just move far far away if you hate it here in Warwick so much. Do you even know how much of your tax bill even goes towards Fire/EMS ?
Tuesday, May 28, 2019 Report this
Reality
Joe K
I have no intention of leaving because the WFD is so greedy. I just read on another blog that the total cost of a Warwick Firefighter averages $271k per yr. when their salary and all the goodies are include.
Disgusting !!!!
Tuesday, May 28, 2019 Report this
Observant1
Really? I’d be interested in seeing that breakdown . RIDICULOUS right back at you pal . Funny though I’ll give you that . If that were the case then the City is getting seriously hosed on healthcare cost.
Tuesday, May 28, 2019 Report this
warwick10
Because most of the budget is applied to the police, fire, teachers, city employee's pensions and healthcare--start there!
Property taxes are too high! Warwick has been lied to and buried with taxes far too long. Stop voting for the same politicians-- make a change!
Tuesday, May 28, 2019 Report this
JamesBruder
Get Real,
Bob Cushman says it’s going to cost 271,000? That is ludicrous. I call shenanigans in that number. Get Real, how was the Shrimp?
Wednesday, May 29, 2019 Report this
JamesBruder
Touché Bobby, this is this most absurd number crunch I’ve ever seen. But I get it. The table top group is throwing the scary numbers around as a scare tactic. There are retiree costs and active costs. The active members DO NOT negotiate for retired members, it can’t be done. The fact is the active budget is around 20 million not 53. There is a small percentage that actually believes these crazy numbers. We saw them storm out of a meeting last night because no one takes them seriously.
Wednesday, May 29, 2019 Report this
bendover
I feel your pain Mr. Johnson...Mine is 7%...So much for 3.46% or whatever nonsense they put out there...
On the topic of the budget and wages, salaries and benefits, if Cushman is wrong, show me where he is wrong...The man knows numbers and has an MBA...This whole nonsense of attacking the messenger because you don't like the message, that dog won't hunt...If his analysis is incorrect, then show me where...I put more stock in him then the balderdash I'm getting from the administration and a dazed and confused council.
..and the audit ends up in the Boston Globe? Sounds like someone wants to put pressure on in order to flip someone...I wonder who could put that kind of pressure on? Things are about to get very interesting, well beyond the City of Warwick's precarious financial condition.
Wednesday, May 29, 2019 Report this
ThatGuyInRI
What a bunch of complainers.
Yes, my taxes went up too, because my home's value went up.
If your home value didn't go up you'd be complaining about that too.
If it's so bad in Warwick then put your money where your mouth is and move out.
Go to that perfect community wherever that is and quityerbitchin.
Thursday, May 30, 2019 Report this
CravenMoorehead
sounds like it's time for a bake sale
Thursday, May 30, 2019 Report this