TC Violates Charter to INCREASE TAXES

It is obvious to me that the North #Smithfield Town #Council’s actions of July 17, 2017 were a clear violation of the Town Charter. Increasing the #tax rate on July 17, 2017 to compensate for a potential loss in state education aid (which never did occur by the way) conflicts with many requirements outlined in the Town Charter. Focusing on the obvious violation, I’ve enclosed in asterisks the most pertinent part of the Town #Charter in Article III, Section 8. (a) which reads:

(a) Upon completion of the public hearing, the council shall take the results thereof under consideration and shall make changes in the budget as it may feel appropriate. ***Final adoption of the budget shall be voted no later than June 30,*** or as otherwise extended by state law. Certification of the budget shall be in accordance with Article VIII of the home rule charter.

Although the courts have ruled in other cases that Charter timelines and process must be strictly followed and adhered to, there has been no court intervention yet in the North Smithfield case. I’ve had multiple attorneys review the Charter and all agree increasing the tax #levy on July 17, 2017 was a serious violation of the Town Charter.

As justification for looking the other way on a clear Charter violation some folks argue that $100,000 isn’t a lot of money and therefore it’s OK to let it slide. Others contend that this is only a one time charge so it’s no big deal.

First, contrary to what some may contend, this is not just a one time over charge. The tax rate has been set and now includes the unjustified and illegal additional tax increase. Unless this year’s tax rate is rolled back, you’ll continue to pay the additional tax each and every year you own your property. Some in government might contend they will make it right by spending less next year but I’m not gullible, I don’t believe for a moment that would ever happen.

Secondly, if we’re going to excuse this illegal tax increase because “we’re only talking about $100,000 increase in the tax levy” then what should the dollar threshold be for actually enforcing the charter language and call it a violation of the Charter? The Charter doesn’t say “near, around or close to June 30th, it says “no later than June 30”. It’s not ambiguous, unclear or confusing; it’s crystal clear with a specific drop dead date. Without this language a Council could send out as many supplemental tax bills as they wished in any given year. This language limits the Council’s ability to increase taxes during the year and it’s in the Charter to protect taxpayers. Letting this violation slide sets a very dangerous precedent.

I don’t care what the money was intended for; it’s irrelevant to the real issue which is the charter mandated date for adopting a budget. But for those who believe this was a necessary and sound fiscal move please consider the following:

• The Town’s Unassigned Fund Balance (in simple terms; a piggy bank) currently has roughly $3.5 million in it. • The School Department’s Unassigned Fund Balance (in simple terms: a piggy bank) currently has nearly $2 million in it. • The current year budget has an “undesignated contingency fund” (in simple terms: a piggy bank within the operating budget) of $435,000. The inclusion of this contingency fund was opposed by the Town Budget Committee, chaired by Kim Alves. Budget Committee members resigned in protest after adoption of the budget. • The accounts above contain a total of roughly $5.9 million in available funds which could have been used to address a shortfall in revenue if it had actually occurred.

Hopefully, without a court battle, the Council majority will be willing to acknowledge the mistake made on July 17, 2017, do the right thing by taxpayers, and vote to lower the tax rate and issue credits or refunds later this month. If Town residents look the other way whenever the Charter is violated we will get the government (and the taxes) we deserve in the end. We have laws for a reason and the Council is not exempt from following them. #taxlevy #towncouncil #litigation #taxincrease #taxes #towncharter #debt