on 07-03-2009 22:58

By DONNA KENNY KIRWAN

CENTRAL FALLS - Despite a loss of $1.5 million in state aid, a new Central Falls municipal operating budget is in place that increases taxes by a margin that is less than half a percentage point.

The City Council recently approved Mayor Charles Moreau's proposed budget of $17,780,238 for the new fiscal year which began on July 1. The budget for the fiscal year that just ended on June 30 was $17,486,368.
Under the new spending plan, the city will increase its property tax levy to $10,546,418, a figure that is .48 percent higher than the previous year's levy figure of $10,496,379.
At the same time, the city has increased its homestead exemption by $10,000, which raises the amount from $50,000 to $60,000. After the additional $10,000 homestead exemption, it is estimated that the proposed increase in property tax revenues will result in a residential real estate property tax rate of $10.78 per $1,000 of assessed value, as compared to the old rate of $10.54.
For commercial property, the new tax rate will be $28.40 per $1,000 of assessed value, as compared to the former rate of $27.77. In addition, a tangible personal property tax rate of $58.94 per $1,000 of assessed valuation was adopted, compared to the old rate of $48.65 per $1,000.
The new property tax levy also includes a motor vehicle tax rate of $48.65 per $1,000 of assessed valuation.
Interim Finance Consultant Azim Mazagonwalla said that the budget was basically level-funded except for contractual salary increases for municipal employees. Noting the loss of the state aid, he said that efforts were made to cut costs where possible.
The budget shows the heftiest decreases were to the library, where $57,657 was chopped, including $50,818 in salaries and the rest in overtime, supplies, and additional expenses. The Highway Department saw a salary increase of $10,245 and a heating fuel increase of $2,500, which was offset by decreases in such areas as overtime, clothing allowances, supplies and other miscellaneous line items to show an overall decrease of $3,130.
The Recreation budget was decreased by $20,098 while the city property category was trimmed by $22,977, primarily due to a cutback of $18,624 in general liability insurance and $5,572 in workers compensation insurance.
The Police Department overtime budget was increased by $50,000, and the City Council's salaries were increased by a total amount of $450, while $140 was reduced from a camera operator budget line.
Mayor Charles Moreau was on vacation and unavailable for comment on the budget. However, City Council President William Benson said that he was "unhappy that it couldn't be better." He noted that the city's loss of $1.5 million in state aid is almost double what it was the last time, and noted that Central Falls is in the same position as other municipalities throughout the state in grappling with the revenue reduction.
Benson said, however, that because of the $10,000 increase in the homestead exemption, most property owners shouldn't see too