Yesterday Mayor Frank Picozzi forwarded City Council members the outline for a proposed $353.2 million budget representing a 3.56 percent increase in spending that projects an expected increase in taxes for most taxpayers for the first time in four years.

Picozzi refused to comment on the proposed budget until council members have had the time to review it. However, based on the legal advertisement appearing in today’s Beacon, the following observations can be made. The next step is for the mayor to present his budget to the Council at public hearings May 22 and May 23 and an additional evening if necessary.

• The mayor proposes a $185.9 million school budget, an increase of 3.9 percent from the current $178.8 million budget and about $1 million less than the $187.3 million budget approved last Thursday by the School Committee. The committee will need to adjust its budget to bring it in line with its allocation from the council and the overall city budget is approved. The budget approved by the committee level funds teacher salaries but takes into consideration step increases. The current contract expires in August. Each 1 percent increase in teacher salaries would cost an additional $1 million according to Assistant Superintendent William McCaffrey.
• Projected residential and commercial tax rates are lower than what they have been for the past four years, but individual tax bills are projected to be higher as a result of the citywide revaluation as of Dec. 31, 2022. The proposed rates are $14.92 per $1,000 valuation for residential; $26.11 per $1,000 for commercial and $37.46 for tangible personal property that is unchanged.
• City taxes are projected to raise $232.1 million with additional sources of revenue coming from state aid, $76.2 million; Federal Aid, $3.5 million; Licenses and fees, $10 million; other revenue $21.4 million; enterprise fund (sewer and water) transfers$2.8 million and fund balance and American Rescue Plan Act drawdowns $7.1 million.
• Expenditures reflecting a 13 percent or greater increase include insurance, up from $2.5 million to $2.8 million; treasury department, $439, 892 to $541,806 an increase of 23 percent and Probate and Municipal Courts from $128,390 to $160,799 a 25 percent increase.
• Departments showing decline in expenditures are the Board of Canvassers (which is currently without a clerk and does not face an election in 2023) $305,760 from $353,636 a decline of 13.5 percent.

The mayor’s budget also includes 13 projects to be funded either with ARPA or federal earmark grants at a total projected cost of $32.7 million. Topping that list is the mayor’s plan for City Hall Plaza and an outdoor skating  rink at $8.2 million by $7.5 million for various sewer projects and $3.2 million for repairs to the water line that ruptured in 2018 under Route 95 at the intersection of Route 37 and renovation of the bypass that has been operating since then . Also on the list is $1 million for school technology and capital that Picozzi made clear in discussing the school budget earlier this spring he views as a one time cost. On that list as well is $2.3 million in public works and safety equipment; $3 million for the first phase of improvements to the Warwick Police Station and $3.8 million in road resurfacing.

The public notice states that the proposed tax rates are based on residential and commercial valuations set by the revaluation and General Assembly approval of legislation giving the City Council, Mayor and Tax Assessor flexibility on rates applied to residential, commercial and tangible property.