Financial Town Referendum Monday, June 2

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What: Financial Town Referendum
When: Monday, June 2 from 8:00 a.m. to 8:00 p.m.
Where: Charlestown Town Hall, 4540 South County Trail

Monday, June 2, is the annual Financial Referendum on the budget for the upcoming fiscal year beginning July 1. The June 2 vote is on the municipal portion of the 2025/26 budget; the Chariho portion was approved earlier. A “yes” vote is a vote to approve the municipal budget.

You can vote in person or by mail ballot. To vote by mail, you need to request a mail ballot, which may be obtained at the Town Hall or by emailing the Town Clerk at arweinreich@charlestownri.gov. For questions, call 401-364-1200.

Voted mail ballots must be received by 8 p.m. on June 2 to be counted. If you obtain a mail ballot and do not vote by mail, you may vote in person on June 2 by a provisional ballot.

The Town Council advises voters to look at the budget itself for specific information in the proposed budget approved by the Town Council because amounts shown in the budget narratives reflect initial proposals from the town’s department heads and may have been changed during the budget process.

Information about the budget

The Budget Commission stated in its transmittal of recommendations to the Town Council that the budget maintains the town’s position as one of the lowest tax-rated communities in Rhode Island while at the same time providing needed community services. However, the Commission also informed the Town Council that achieving this balance had been challenging because “expenditures continue to trend upward while revenues are increasing much slower.”

The town maintains funds to mitigate current and future risks and to ensure stability for town services and tax rates. It has been reported that the funds maintained for emergencies in the Unassigned Fund Balance will be equal to at least 23% of its annual operating expenditures as required by the town’s Fund Balance Policy adopted in 2021.  It is worth noting that this increase in the Unassigned Fund Balance in 2025/26 will generate an increase in investment income of $200,000.

The overall budget for fiscal year 2025/26 has increased by 1.5%, to $30,405,633. The amount raised by taxing real estate (called the property net tax levy) is proposed to increase by 3.10%. The tax rate (called the mil rate) is projected to increase by 2.6%.

Budgeted expenditures:

  • Departmental expenditures—Departmental expenditures have increased by 8.36%. The increase is primarily due to payroll and associated benefit enhancements; increased costs of the Charlestown Ambulance Rescue Service (CARS) as a result of annual step increases in the 3-year Agreement entered into by the Town Council in 2024; additional expenditures of $348,020 recently added by the Town Council; and other inflationary costs related to supplies, maintenance, and software.
  • Debt service–Debt service has decreased by 39.18% because an open space bond issued in 2013 has been retired.
  •  Capital expense—Funds put aside for capital improvements have decreased by 1.24%. It is also worth noting that some of these funds have been designated for temporary repairs of Charlestown Beach Road.

Budgeted revenues:

  • Current year tax revenue—Tax revenue has increased by 3.04%.
  • Education state aid—State aid for education has increased by 0.57%.
  • Municipal state aid—Municipal aid provided by the state has increased 2.25%.
  • Revenues for licenses, permits, and fees—These revenues have decreased by 11.67%, primarily because of shortcomings anticipated over the course of the next year.
  • Departmental and other revenues—These revenues have increased by 37.45%. These increases are primarily the result of money transferred in as income from the Unassigned Fund Balance, increased investment income, and revenue from recreational activities.

Although the proposed budget is a good budget, the budget provides only minimal capital investment, and again it does not address the “material weaknesses” found in the Finance Department in the recently completed annual financial audit. The Five-Year Capital Improvement Plan that was promised last year is needed because it would integrate capital investments into the broader strategic goals of the town and ensure that sufficient funds will be available for necessary large-scale projects.