Charlestown 2020 Budget Contains $3M Surplus And No Tax Increase
Now that the Chariho school budget is finalized, the Town Council has begun to review the entire 2020 municipal budget. The two most important facts are:
- The tax rate is projected to remain unchanged at $9.64 per $1,000 of assessed value.
- There is a $3 million surplus available for a new capital improvement project.
Tax Rate
Charlestown’s tax rate is among the very lowest in Rhode Island.
Surplus
A surplus of this size is the result of incredible good fortune and presents a once-in-a-lifetime opportunity because a $3 million surplus is not likely to occur again.
- Part of the surplus results because of the number of students enrolled in Chariho. There are about 61 fewer students, and that equates to a $900,000 savings this year.
- There are no major road projects scheduled in 2020, and in addition this year’s road projects have come in under budget or were scaled back to address neighborhood concerns, resulting in a savings of about $1 million.
- The town’s unassigned fund balance, or surplus, already exceeds the recommended upper limit of 25 percent and as a result $1,250,000 can be removed from the surplus account.
Community Center
One proposal for the surplus is to reserve these funds in order to be able to build a community center in the near future. The center would be located in the northwest corner of Ninigret Park–the corner of the park next to Route 1A and nearest the Umbrella Factory. The center could house a gymnasium, a stage, rooms for classes and meetings, a kitchen, and the like. There could be an outside performance capability as well, and the facility could also serve as a certified emergency center.
Volunteer For The Ad-Hoc Community Center Committee
The Town Council has created a 5-member ad-hoc committee to explore the community center idea, present ideas, and seek public input and opinion. Not a dime would be spent on construction until this outreach is done and a plan that residents want is in place.
You can volunteer for this committee by submitting an application to the Charlestown Town Clerk. The application is available to download at this link. Applications may also be sent by email to arweinreich@charlestownri.org by April 30.
Budget Hearing and Budget Vote
A public hearing to discuss the budget will be held on May 6 at 7:00 pm at the Town Hall. Bring your questions to that meeting.
The vote on the budget will take place on June 3 at the Town Hall from 8 am to 8 pm.
What would you like to see in a community center?
April 21, 2019 @ 9:26 am
I believe that every Charlestown citizen should read the annual financial report prior to jumping on the “free money” bandwagon. Upon doing so they will see that the town’s police pension is underfunded by $4.7 million or only funded at 66.5%. This underfunded liability has grown from $2.5 million in 2014 to it’s present state. We also have an additional $1.8 million in unfunded OPEB (other post employment benefits) police liabilities for a total of $6.5 million in unfunded liabilities.
Looking at these numbers should cause a prudent person to think that the town has other ways/obligations that require the use of this “surplus”.
April 23, 2019 @ 2:25 pm
There are few things in life that are “free.” The 2020 municipal budget is unique: This budget does not require an increase in the tax rate based on current estimates of the Grand List (that is, the aggregate valuation of taxable property within Charlestown). In addition, it includes an opportunity to explore enhancing our town in the budget. This once-in-a-lifetime opportunity deserves serious consideration because a Community Center would serve our residents year-round for many, many years to come. There is a public hearing on the municipal budget on May 6 at 7:00 pm. at the Town Hall. Residents are encouraged to attend and participate.
April 19, 2019 @ 7:53 am
The process is sound. The Town Council has established an Ad Hoc Committee to do the tasks you describe. There would be outreach to residents to discover what people want in an appropriately sized facility that can be built within the budget. There would be a business plan developed–before a dime would be spent on construction. The work of the Ad Hoc Committee would be overseen by the Town Council, and the Town Administrator could be an ex officio member.
The opportunity is unique. Residents of the town have long planned to build a community center, but there have been no funds to actually build it. Door-to-door visits to residents on almost every street in town have also revealed that a good many of our residents still want one. But, residents would get to say whether they want a community center or not.
The Town Council was presented with two recommended uses for the amazing, unanticipated savings. One recommendation was to reserve funds to explore building a community center and design what would be possible. The second was to pay down the town’s future liabilities. The Town Council has proposed looking at building a community/recreation/senior center because building such a center would be the better way to give these savings back to residents so that these savings can be shared, equally, among all residents, year-round and year after year.
April 21, 2019 @ 9:35 am
Bonnie,
I disagree with your assessment. The budget commission did not recommend the building of a community center. We said there is a surplus of funds. In fact it was the town council who asked the budget commission to find the funds after the town council had voted to explore the possibility of building the community center.
If you will recall you were a champion for the purchase of the General Staton Inn without any business plan for making it a viable operation.
April 23, 2019 @ 2:26 pm
The budget commission recommended the FY 2019-2020 Budget. It included a multipurpose Community Center in the budget as directed by the Town Council. The budget commission stated in its Determination Letter that this option and the option of paying down the town’s future liabilities are consistent with its recommendation.
April 18, 2019 @ 8:18 am
Sorry to be the wet blanket of reality, but We already have a community center and outdoor
Concert venues at Ninigret. Don’t get carried away! I think we should shore up the coastline to protect ourselves against the next hurricane… or save the $$$$$ for when that day comes.
Because it IS coming, whether you believe in science or not!
April 17, 2019 @ 2:38 pm
Thanks to the town for good fiscal management, maintenance of low taxes, protecting our green space and warding off mega-corporate malignancy.
A community center with a stage would be a great spot for us to meet up and have some fun.
April 17, 2019 @ 7:16 am
Kudos to the Town Council for proposing to use the budget surplus to build a community center in Ningret Park. The surplus is a one-time bonus derived from a decline in enrollment in the Chariho school system. The surplus could be used to reduce property taxes, but Charlestown already carries one of the lowest tax burdens in the state, so further tax relief would be short sighted. The bonus could be used to pay off bonded debt, but Charlestown is not strained by bonded debt, and already meets or exceeds the recommended 20% rainy-day fund to respond to unanticipated expenses. Given our exemplary financial security, the town would best repay its residents by using the bonus to improve services. A new community center would offer a wide array of activities to improve recreational opportunities for all residents.
April 14, 2019 @ 10:11 am
I believe a townwide survey should be undertaken to determine the public’s desire for a new capital project at Ninigret Park. Consider the possibility that the $3 million may be an insufficient amount to build the new center. If the cost is double that or more, where would those funds come from? We taxpayers are the likely source of the deficit.
April 14, 2019 @ 11:24 am
The whole point of building with cash on hand is that you design to a set budget. You can’t go over budget or design beyond the funds on hand. You could apply for and receive outside funding like a grant if any are available. This is clearly meant to be built with available funds, not tax increases. Saying this will cost “double” is silly. A better question is to ask “what can the town build for three million and do we want that”. That seems to be the role of the committee to find out what can be built for that price and then bring it to the public.
April 14, 2019 @ 9:15 am
When budget deficits result in tax increases , surpluses should result in refunds. Give it back to the taxpayers!
April 19, 2019 @ 7:56 am
The word that puts fear in the hearts of investors is “volatility”. Unpredictable changes in the property-tax rate would introduce volatility in property values. A one-time budget surplus should be spent to improve services. It should not be used in such a way that would introduce volatility in the tax rate.
April 14, 2019 @ 9:12 am
What is the elevation at that location? Or are you going to build it on stilts?
April 14, 2019 @ 2:36 pm
No stilts needed. Although, on a visit to Ninigret Park, the park appears flat and low, it actually is not. Because the elevation of the northwest portion of the park is 39 feet, the proposed site is outside the 500-year flood plain on FEMA’s maps. Also, CRMC’s STORMTOOLS maps show that the proposed site is outside the area that would be affected by flooding should a 100-year storm occur after sea level had already risen by 10 feet. Note that NOAA predicts that sea level rise will be just shy of 10 feet in 2100, so the site is projected to be unaffected by flooding in the next 80 years or so.
April 13, 2019 @ 8:47 am
I always say that nothing just “happens.” This year’s budget is the result of effective planning and management. Over the past several years, the town has benefitted from a slow growth vision and did not buy into massive green energy schemes that seem to haunt neighboring towns.
The community center is an excellent idea that includes the needs of the senior citizens, the youth of the town and their parents. It also addresses the need for an emergency shelter. This is a win-win scenario for the town.
I hope people with the necessary planning skills apply to be members of the Ad Hoc Committee.