Fung: No New Taxes in Fiscal 2013 Budget

Cranston Mayor Allan W. Fung has proposed a $246 million budget for fiscal 2013. It does not include a tax increase, but tax bills will change due to the recent statistical revaluation that dropped the median property value by 13 percent.

Cranston taxpayers will not see a tax increase next year as Cranston Mayor Allan W. Fung has proposed a flat budget of $246 million.

But some residents will be paying more and some less due to the statistical revaluation this year that showed a 13 percent drop in the median property value. That means if your house's assessed value decreased more than 13 percent, the tax burden will shift away from you and your bill will go down.

But if your property decreased in value less than 13 percent, your tax bill will increase next year. Cold comfort if you're looking at a 10 percent value drop.

If approved, the mayor's budget calls for a tax rate of $22.88 per $1,000 of assessed value for residential property. For commercial, it's $34.32.

Last year, the residential rate was $20.26 and the commercial rate was $30.59.

"I wish that I was presenting this budget in a normal year," Fung said, "so everyone could be sure their taxes wouldn't change, for once."

Still, for Fung to present the City Council a flat budget at a time when other municipalities in Rhode Island are grappling with huge deficits, his proposed budget demonstrates Cranston has reached a level of stability after years of what felt like emergency surgery at budget time.

That isn't to say the city doesn't have enormous — and mounting — problems, such as its unfunded pension liability, which has increased to about $275 million.

Fung presented his budget to the City Council at a special meeting tonight (Friday).

For more about the fiscal 2013 budget, check back later.

Bob March 31, 2012 at 01:10 PM
Bob 8:54 am on Saturday, March 31, 2012 The problem here is Mayor Fung and many other municipal leaders like him are just "Kicking the can" down the street. This makes him look good in an Election year by not raising taxes. However the problem still exists big time for next year and the year after that. Our alleged leaders are so afraid to fix the structural problems it's pathetic. They are not leaders at all. If they were we would have no issues. Make no mistake folks the pension crisis is alive and well in Cranston and will no doubt crush the city soon. We are one step away from becoming a Central Falls, Woonsocket, East Providence...so on and so forth.....If and when it happens let just hope the Cranston voters do not award Mayor Fung with another cushy job like the voters in Providence did with the fraud called Cicilline....Note to Fung...fix the pension crisis now.....Remember taxpayers outnumber Union members......Who do you represent ?
Kimberly Goldthwait March 31, 2012 at 01:59 PM
How can it be said there is no tax increase? If the tax rate in 2011 was "residential rate was $20.26 and the commercial rate was $30.59" and the new rate will be " $22.88 per $1,000 of assessed value for residential property and for commercial it's $34.32." in 2012, isn't that an increase in the tax rate? I realize that because the value of our properties has decreased when all is said and done the actual amount of tax any individual or business may pay could be less or remain the same, but still I don't understand how it can be said that there is no tax increase. The tax rate went up. That is a tax increase. I don't think it is fair to say we are not getting a tax increase. The fact is that our properties are not worth as much as they were last year and if the tax rate remained the same, as last year, the mayor would not have enough anticipated income to level fund the city. He raised our tax rate to compensate for the fact that our properties lost value. So we did get a tax increase. Right?
STFU!! March 31, 2012 at 03:54 PM
@ Bob the problem here is not Mayor Fung it is us the voters we voted Fung in and gave him no help we elected school comm and city council members who are left wing liberal union owned dems let's face it im and independent and the dems in RI have made us one of the highest taxed most expensive states in the US the dems here are owned by state and municipal public unions who have chained us to their outrageous pensions and benefits for many years to come but u cant get blod from a stone the shit has hit the fan people are losing their homes their equity their jobs when we the taxpayers a shrinking base our totally drained guess what? were will the unions suck their contracts from then? Don't blame Fung blame your unions and the politicians they own.
John E. Lanni, Jr. April 02, 2012 at 01:27 PM
Mr. Riggi, the only person that can negotiate city union contracts is Mayor Fung. The city council cannot even sit in on the negotiations. They can only ratify contracts based on the data provided by the mayor and his financial advisor. Please read your city charter.
Bob April 02, 2012 at 02:12 PM
Actually they are all to blame, Fung, City Council including the one who wrote below...Lanni....and you are right...the fools who vote in this city are uninformed and cluless and don't realize what they are doing when they do not vote in any help for the Mayor...either way...we are doomed....
Don Botts April 03, 2012 at 03:14 PM
When the Mayor talks whether there is a tax increase or not, I believe he refers to the total levy of revenue taken in, not the increase in the tax rate per thousand. So while some do see an increase in the amount of property taxes paid (about 1/3), another 1/3 stays neutral, and another 1/3 actually see a decrease. This is the result of a state law requiring cities and towns to do property revals every so often.


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