April 1, 2021
FY22 PROPOSED BUDGET.PDF
Watch the Budget Address
MAYOR KENNETH J. HOPKINS
BUDGET ADDRESS
APRIL 1, 2021
GOOD EVENING MY FELLOW CRANSTONIANS AND MEMBERS OF THE CITY COUNCIL.
TONIGHT I HAVE THE DUTY TO PRESENT TO THE CITY COUNCIL, MY FIRST MUNICIPAL BUDGET AS MAYOR SINCE TAKING OFFICE A SHORT THREE MONTHS AGO.
ONE YEAR AGO, I SERVED AS A MEMBER OF THE CITY COUNCIL WHILE OUR CITY AND STATE ONLY BEGAN TO SEE THE DIFFICULT AND CHALLENGING IMPACTS OF THE COVID 19 PANDEMIC. LITTLE DID WE KNOW HOW OUR DAILY LIVES WOULD BE TOUCHED BY THIS HISTORIC AND DREADED DISEASE.
IT HAS BEEN AN AGONIZING YEAR IN SO MANY WAYS FOR OUR RESIDENTS, FAMILIES, AND LOCAL BUSINESSES, ESPECIALLY OUR RESTAURANTS AND SMALL RETAIL OWNERS.
WE ALL KNOW SOMEONE WHO HAS LOST A LOVED ONE TO THIS DEVASTATING VIRUS AND I WAS HONORED LAST NIGHT TO STAND AT A VIGIL WITH THE MEMBERS OF THE CITY COUNCIL AS WE REMEMBERED THE LIVES LOST TO THIS PANDEMIC.
OUR COMMUNITY, AS ALWAYS, HAS SHOWN RESOLVE IN ITS WILL TO SUCCEED AND RESOURCEFULNESS IN HOW WE KEPT GOING.
WITH THE ACCELERATION OF VACCINES, I AM HOPEFUL WE ARE AT THE BEGINNING OF THE END TO RETURNING TO THE NEW NORMALCY WE WILL EXPERIENCE GOING FORWARD.
I MUST TAKE A MOMENT TO RECOGNIZE OUR DEPARTMENT OF SENIOR SERVICES UNDER DIRECTOR STEVE CRADDOCK AND OUR FIRE DEPARTMENT UNDER THE LEADERSHIP OF FIRE CHIEF JAMES WARREN FOR THEIR OUTSTANDING AND FLAWLESS ADMINISTRATION IN OUR LOCAL VACCINATION EFFORTS FOR OVER 3,200 RESIDENTS.
WITH BOTH OF THESE GENTLEMEN NEW TO THEIR POSITIONS, AND WITH LITTLE ADVANCE NOTICE, THEY DEVELOPED A PLAYBOOK TO GET OUR RESIDENTS VACCINATED. I APPRECIATE THEIR EFFORTS AND ALL THE VOLUNTEERS WHO CAME FORWARD TO ASSIST THEM.
LAST YEAR AS WE FORMULATED THIS CURRENT YEAR’S BUDGET THE ADMINISTRATION AND CITY COUNCIL HAD TO MAKE BUDGET DECISIONS UNCLEAR EXACTLY WHAT OUR FISCAL FATE WOULD BE IN THE MONTHS THAT FOLLOWED.
WE ALL REMEMBER THAT THE COUNCIL DELAYED ADOPTION OF THE BUDGET IN HOPES OF HAVING A CLEARER UNDERSTANDING OF THE FINAL ALLOCATION OF STATE AND FEDERAL RESOURCES.
IN SOME WAYS, I WAS FACED WITH SIMILAR CHALLENGES IN FORMULATING THE 2022 FISCAL YEAR BUDGET STARTING JULY 1.
TODAY, WE HAVE NO FINAL DIRECTION YET FORMALIZED AS THE GENERAL ASSEMBLY HAS NOT ADOPTED NEXT YEAR’S STATE BUDGET. OUR STATE AID NUMBERS ARE IN CONTINUED DISCUSSION WITH THE GOVERNOR AND ASSEMBLY LEADERS – PARTICULARLY, THE DISAPPOINTING FORMULA FOR INCREASED EDUCATION AID FOR OUR SCHOOLS.
THE FEDERAL GOVERNMENT HAS COMMITTED $27 MILLION DOLLARS TO CRANSTON UNDER THE RECENTLY ADOPTED AMERICAN RESCUE PLAN ACT OF 2021.
WHILE WE CAN USE THE FUNDS TO COVER COSTS INCURRED BY DECEMBER 31, 2024, THEY HAVE NOT GIVEN SPECIFIC DIRECTION FOR USE OF FUNDS TO LOCAL CITIES AND TOWNS. WE ARE WORKING WITH SENATOR JACK REED AND OUR CONGRESSIONAL DELEGATION FOR FINAL DIRECTION ON SPENDING PURPOSES MORE SPECIFIC THAN THE BROAD GUIDANCE OFFERED TO DATE.
CRANSTON, UNFORTUNATELY, IS ONE OF THE FIRST COMMUNITIES IN RHODE ISLAND REQUIRED TO PROPOSE A BUDGET WITH AN APRIL 1 SUBMISSION DATE. OTHER COMMUNITIES ARE ABLE TO WAIT LONGER BEFORE PROPOSING A BUDGET AND MAY HAVE THE BENEFIT OF ADDITIONAL FEDERAL GUIDANCE.
SOME OF MY ADVISORS SUGGESTED THAT WE ASK FOR AN EXTENSION OF TIME TO SUBMIT THE BUDGET, BUT I FELT THE RESIDENTS AND CITY COUNCIL HAD THE RIGHT TO KNOW OUR FINANCIAL PLANS AND I AM COMFORTABLE PROCEEDING FORWARD TONIGHT.
IN MY INAUGURAL ADDRESS I FOCUSED ON SEVERAL BROAD PRIORITIES.
FIRST, PROTECTING YOUR TAX DOLLARS. SECOND, PROTECTING YOUR NEIGHBORHOODS. THIRD, PROTECTING YOUR SPECIAL QUALITY OF LIFE.
THIS BUDGET FOR THE NEXT FISCAL YEAR, MEETS THOSE PRIORITIES. AS I SAID IN JANUARY, CRANSTON WAS TO UNDERGO A STATE MANDATED REVALUATION OF ALL RESIDENTIAL AND COMMERCIAL PROPERTIES IN OUR CITY. I KNOW THAT A REVALUATION CAUSES HOMEOWNERS CONCERNS, BUT I ORDERED THAT THE TAX ASSESSOR AND VISION APPRAISAL GIVE TAXPAYERS AMPLE OPPORTUNITY TO DISCUSS THEIR NEW PROPERTY VALUES.
WE HAVE ALL WITNESSED EXTRAORDINARY INCREASES IN-HOME SELLING PRICES THAT MUST BE REFLECTED IN THE NEW VALUES AS OF DECEMBER 31, 2020. I HAVE SEEN THAT EVEN WITH NEW ASSESSMENTS, RESIDENTS ARE STILL SELLING THEIR HOMES FOR MORE THAN THE NEW VALUES.
THE BOTTOM LINE FOR EVERY TAXPAYER IS HOW MUCH IN TAXES THEY WILL HAVE TO PAY. WITH THE HELP OF OUR FINANCE TEAM AND CAREFUL REVIEW OF BUDGET NEEDS, I THINK MOST RESIDENTS WILL BE PLEASED WITH OUR FINAL EFFORT.
THE OPERATING BUDGET AND CAPITAL BUDGET THAT I PRESENT TONIGHT, MEETS MY COMMITMENT TO CONTINUE THE EFFECTIVE DELIVERY OF CITY SERVICES FOR EVERY RESIDENT AND NEIGHBORHOOD.
IMPORTANTLY, IT REFLECTS MY COMMITMENT TO OUR SCHOOLS, STUDENTS, AND STAFF. THIS BUDGET PLAN WILL KEEP OUR FINANCIAL HOUSE IN ORDER TO PAY OUR DEBT OBLIGATIONS. WE WANT TO PROTECT OUR BOND RATINGS, TO ENSURE A FAVORABLE CREDIT POSITION FOR SHORT AND LONG TERM DEBT WITH THE RATING AGENCIES.
IN ACCORDANCE WITH THE CITY CHARTER OUR RAINY DAY FUND IS AT OVER $18 MILLION, TO ENSURE THAT WE ARE ABLE TO MEET FUTURE FISCAL CHALLENGES. WE HAVE THAT OBLIGATION TO THE TAXPAYERS TO BE PRUDENT IN OUR BUDGET MANAGEMENT.
WHILE WE ARE MOVING TOWARDS A REOPENING OF OUR ECONOMY, OUR ESTIMATES OF REVENUE FROM A VARIETY OF OUR SOURCES ARE REALISTIC. WE HAVE BUDGETED $7.9 MILLION FROM THE AMERICAN RESCUE PLAN ACT (ARPA) MONEY. THAT WILL HELP US FROM THE DIRECT IMPACTS AND REVENUE LOSSES FROM THE PANDEMIC AND SEVERE NEGATIVE IMPACTS ON INDUSTRIES LIKE THE RESTAURANTS AND HOSPITALITY.
THE BALANCE OF THE MONEY WILL REMAIN FOR FUTURE YEARS AS A RESTRICTED ACCOUNT FOR OUR NEEDS AS FEDERAL REGULATIONS CLARIFY STATE AND LOCAL OPPORTUNITIES.
MY PROPOSED BUDGET FOR FISCAL YEAR 2022 IS APPROXIMATELY $311 MILLION DOLLARS. THAT IS AN INCREASE OF 4%. SCHOOLS ARE BUDGETED $170 MILLION AND THE CITY $141 MILLION DOLLARS.
INCLUDED IN THE BUDGET IS FUNDING FOR EMPLOYEE CONTRACTUAL OBLIGATIONS AND STEP INCREASES OF $2.4 MILLION DOLLARS.
WE HAVE BUDGETED AN ADDITIONAL $1.9 MILLION DOLLARS FOR HEALTH INSURANCE COVERAGE.
WE ARE FULLY FUNDING OUR ANNUAL CONTRIBUTIONS TO THE CITY AND STATE PENSION FUNDs AND OUR ANNUAL OBLIGATION FOR OPEB (OTHER POST RETIREMENT BENEFITS).
YOU MAY RECALL, LAST YEAR, OPEB WAS FUNDED ONLY FOR ONE HALF OF THE ACTUARIAL DETERMINED AMOUNT.
MY STRONG COMMITMENT TO OUR POLICE AND FIRE DEPARTMENTS ARE REFLECTED IN THIS BUDGET.
WE ARE IN THE PROCESS OF A RECRUITING DRIVE AND EXAMINATION PROCESS FOR A DIVERSE GROUP OF POLICE APPLICANTS. I HAVE INCLUDED FUNDING TO FILL 4 OFFICER POSITIONS IN THE POLICE DEPARTMENT WHEN READY.
WE WILL SOON START TO RECRUIT FOR OUR FIRE DEPARTMENT AND I HAVE INCLUDED FUNDING OF $1.6 MILLION DOLLARS FROM A SUBMITTED FEDERAL SAFER GRANT TO PAY FOR THE COSTS OF 15 FIREFIGHTERS. WE ARE WORKING WITH SENATOR REED AND CONGRESSMAN LANGEVIN IN PROMOTING THAT GRANT FOR US.
I HAD REQUESTS FROM SEVERAL OTHER DEPARTMENTS FOR NEW AND OPEN POSITIONS. AFTER CAREFUL REVIEW, I DETERMINED THAT THIS WAS NOT THE YEAR TO BE FILLING THOSE SPOTS. I HAVE CONFIDENCE THAT ALL DEPARTMENTS WILL CONTINUE MEETING CONSTITUENT NEEDS WITH CURRENT STAFF LEVELS.
AS A DIRECT RESULT OF THE PANDEMIC’S LINGERING AND UNKNOWN TIMETABLE, I HAVE ACCEPTED THE RECOMMENDATION TO KEEP THE BUDLONG POOL CLOSED AGAIN THIS SUMMER. THE PLANNING TIME TABLE TO PREPARE THE FACILITY, HIRE SUMMER EMPLOYEES, AND OPEN THE POOL DOES NOT WORK IN OUR FAVOR ANTICIPATING THAT COVID RESTRICTIONS REMAIN IN PLACE.
AS A FORMER ATHLETIC DIRECTOR FOR OUR SCHOOLS, IT WAS NOT AN EASY CHOICE. I HAVE ASKED THAT WE EXPLORE INSTALLING A SPLASH PAD AT THE POOL AND / OR OTHER LOCATIONS. WE ARE PLANNING RIGHT NOW TO HAVE A SUMMER RECREATION PROGRAM FOR OUR CHILDREN AND TO ASSIST WORKING FAMILIES.
WE HAVE PLANNED FOR CONTINUED PROGRESS IN ROAD PAVING AND INFRASTRUCTURE IMPROVEMENTS. OUR PUBLIC WORKS NEEDS ARE REFLECTED IN THE $6.4 MILLION DOLLAR CAPITAL BUDGET I PRESENT TONIGHT.
BUT BY FAR THE BIGGEST COMMITMENT I MAKE TONIGHT AND URGE PASSAGE BY THE COUNCIL IS IN THE AREA OF EDUCATION AND OUR SCHOOLS.
HISTORICALLY, NEW CITY DOLLARS TO THE SCHOOL DEPARTMENT HAVE BEEN MODEST AND A GOOD EFFORT BY MAYORS AND PAST COUNCILS. LAST YEAR, FOR EXAMPLE, APPROXIMATELY $469,000 EXTRA WAS GIVEN TO THE SCHOOLS FROM LOCAL TAX DOLLARS.
I HAVE DETERMINED THAT MY FINANCIAL COMMITMENT MUST BE COMMENSURATE WITH MY SUPPORT FOR OUR KIDS AND THEIR EDUCATIONAL NEEDS.
ACCORDINGLY, I AM PROPOSING AN INCREASE OF $1.5 MILLION FOR OUR SCHOOLS IN CITY DOLLARS. THIS INCREASE, MORE THAN TRIPLES THAT OF LAST YEAR AND IS EQUAL TO THE HIGHEST INCREASE PROPOSED BY A MAYOR IN THE PAST DECADE. COMBINING THE $20 MILLION THAT THE SCHOOLS WILL BE RECEIVING FROM ARPA FUNDS, ALONG WITH AN ADDITIONAL $9 MILLION IN FEDERAL GRANTS, I AM CONFIDENT THE ADMINISTRATION AND SCHOOL COMMITTEE CAN MEET THEIR EDUCATIONAL OBLIGATIONS.
WE WILL CONTINUE TO URGE THE GOVERNOR AND LEGISLATURE TO REVISE THE FORMULA THAT THIS YEAR ONLY GIVES THE SCHOOLS AN INCREASE OF $36,000 IN STATE AID.
THE SECOND PART OF MY COMMITMENT TO THE SCHOOLS IS IN THE PROPOSED CAPITAL BUDGET. THE VOTERS OVERWHELMINGLY APPROVED LAST NOVEMBER’S SCHOOL BOND ISSUE FOR $147 MILLION.
WE ARE PROVIDING THE FUNDS IN THE NEXT FISCAL YEAR TO BEGIN THE REBUILDING OF GARDEN CITY AND GLADSTONE SCHOOLS AS WELL AS SEVERAL OTHER SCHOOL PROJECTS.
IN SUMMARY, THIS BUDGET REFLECTS MY COMMITMENT TO ALL THE TAXPAYERS TO KEEP CRANSTON ON THE RIGHT TRACK. WE WILL ALWAYS HAVE CHALLENGES BUT TOGETHER WE CAN MEET ALL THAT IS PUT BEFORE US.
WE CAN CONTINUE TO BE A TOP RATED COMMUNITY WITH PROPER FINANCIAL MANAGEMENT, THE DELIVERY OF EFFECTIVE CITY SERVICES, AND PROTECTING OUR SPECIAL QUALITY OF LIFE FOR PEOPLE TO LIVE, GROW AND WORK HERE.
MY FELLOW TAXPAYERS AND MEMBERS OF THE CITY COUNCIL, THE BUDGET I PRESENT TONIGHT, IF ADOPTED BY YOU, WILL NOT RESULT IN A PROPERTY TAX INCREASE NOR AN INCREASE IN SEWER FEES OR ANY OTHER FEES.
THIS BUDGET IS WORTHY OF YOUR SUPPORT AND I LOOK FORWARD TO YOUR DELIBERATIONS AND OUR COLLECTIVE EFFORTS FOR OUR CITY RESIDENTS.
GOOD NIGHT AND LET US CONTINUE TO MOVE CRANSTON FORWARD TOGETHER, AND AS ALWAYS, “ONE CRANSTON, ONE HEARTBEAT”.