Town Council Meeting On 2025–2026 Municipal Budget

When: Monday, March 31 at 6 PM
Where: Charlestown Town Hall on Route 2 (4540 South County Trail)
What: Special Town Council meeting to review, discuss, and take potential action regarding the 2025–2026 municipal budget recommended by the Budget Commission.

The Budget Commission’s recommendation is based on its comprehensive investigation of the various departmental budget requests assembled by the Town Administrator. The recommended budget provides for “a continuation of services that benefit residents of all ages as well as maintaining the quality of life in Charlestown with minimal additional investments.” The budget also raises the Unassigned Fund Balance to 26% of the town’s annual operating expenditures—a level that is within the range of 23% to 33% which is specified by Charlestown’s Fund Balance Policy in order to mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenditures) and to ensure stability for town services and tax rates.

The Budget Commission summarized its recommendations as follows:

“This budget will enable our town to maintain its position as one of the lowest tax-rated communities in Rhode Island while providing a high level of professional services. Achieving this balance is particularly challenging as expenditures continues to trend upward while revenues are increasing much slower.

This year we propose that the Town of Charlestown increase its property net tax levy in fiscal year 2026 to approximately $24,466,173, from $23,748,060 in 2025. This is a proposed net tax levy increase of 3.0%. The projected estimated tax rate, based on the recommended budget, is $5.93 per one thousand dollars of valuation. This represents an increase of 2.60% from the current rate of $5.78. This tax rate is based upon the estimated statement of assessed valuations by the Town Tax Assessor which has increased 0.45%. The total fiscal year 2026 budget recommendation is $30,053,936, an increase of $445,060 or 1.5% from last year’s budget of $29,608,876.”

The Budget Commission highlighted major areas where expenditures have grown:

• Employee costs, as the result of the first year of new three-year union contracts (estimated $130,000 impact)
• Employee health insurance and other benefits costs (increase of $287,609)
• Cost of the Charlestown Ambulance Rescue Service, as the result of the second of three annual step increases under a 2024 agreement between CARS and the town ($200,000 increase)
• General inflation in the costs of purchased services and goods in many departments

The Budget Commission also highlighted major areas where expenditures have been reduced:

• Chariho School District costs as the result of decreased student enrollment and the planned closing of the Hope Valley Elementary School ($83,142 benefit)
• Debt service because an open space bond was retired ($220,000 benefit)
• Hazard Mitigation Plan refresh as the result of its anticipated completion ($50,000 benefit)
• Charlestown Elementary School playground project, a one-time expenditure included in last year’s budget and therefore not included in this budget ($150,000 benefit)
• Engineering work, an unused expenditure included in last year’s budget and therefore not included in this budget ($50,000 benefit)

Major revenue changes other than the proposed tax increase include:

• Investment income as a result of the unassigned fund balance level ($200,000 increase)
• Building inspection fees and real estate transfer fees ($89,000 reduction).

The Council may revise the recommended budget proposed by the Budget Commission, either at its March 31 special meeting and/or at its regular meeting on April 14. The Town Council will then vote to adopt its proposed budget and send it to the Budget Public Hearing on May 5.

After the Budget Public Hearing on May 5, the Town Council may make final revisions to its proposed budget and vote, likely at its regular meeting on May 12, to forward its proposed budget to be placed on the ballot of the all-day Financial Referendum on June 2, 2025.