Providence City Council Finance Hearing on Elorza Budget Held Illegally, Says State of Rhode Island
GoLocalProv News Team and Kate Nagle, News Editor
Providence City Council Finance Hearing on Elorza Budget Held Illegally, Says State of Rhode Island
The Department of Revenue said that it never reviewed and approved the property tax estimates put forth as required by law. The City Council, however, maintains their actions were legal.
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State’s Position
In a letter dated June 29, Stephen Coleman Jr, Chief of the Division of Municipal Finance for the Rhode Island Department of Revenue, sent a letter to Providence Mayor Jorge Elorza — and included top members of the administration and the entire City Council.
“On June 11th the City notified the Department of Revenue (Department) that was their position that it was not necessary to receive the Department’s approval prior to holding a public hearing on the Providence budget,” wrote Coleman. “Immediately following this communication from the City, the Department sent the following response:”
“Please be advised that pursuant to R.I. Gen. Law 44-35-6, property tax estimates must have been reviewed and approved by the Rhode Island Department of Revenue before any notice of proposed property taxes rates can be published by the city. Further, no public hearing regarding property tax rates can legally be held unless there has been prior approval by the Department of Revenue. See also R.I. Gen Laws 44-35-7 and the Division of Municipal Finance Regulation 280-RICR-40-00-1 (Standards and Procedures for Property Tax and Fiscal Disclosure for Rhode Island Cities and Towns.)”
“Subsequent to the above communication the State has more than one call with City officials and reiterated that no public hearing regarding property tax rates could be legally held without the prior approval of the Department of Revenue. Subsequent to those communications, on June 18th, the City posted an advertisement in the Providence Journal notifying taxpayers of its plans to hold a public meeting for the purposes of considering the administration's proposed budget,” he continued. “Additionally notice was provided to taxpayers that: “The above property tax estimates have been computed in a manner approved by the Rhode Island Department of Revenue.” RI Gen Law 44-35-6 requires that this language be included in the advertisement.”
“I am once again giving the City notice that the Department did not provide approval prior to the posting of the notice,” said Coleman. “For this reason and other reasons that have been the subject of numerous and on-going discussion between the Mayor’s office, others within the Providence Administration, RIDE, the Division of Municipal Finance, and the Governor’s Office, it is the state’s position that the hearing scheduled for tonight (June 29, 2021) cannot legally be held and any action taken at the meeting related to the budget will be invalid.”
City Council Moves Forward — and State Responds
Ryan does now, however, acknowledge to meeting attendees the letter sent by the state.
SEE MEETING VIDEO BELOW
“Are you aware we are holding this meeting per city charter and all applicable state laws, and accordingly, have you certified that this public hearing for the subsequent taxing of the levy and the issuance of tax bills — have you certified this public hearing?” Ryan asks Dana.
“My office has reviewed this — moving forward with this public hearing complies with all the requirements under the charter and Rhode Island General law,” Dana replies.
When reached following the meeting, the Department of Revenue continued to contend the meeting was illegal.
“It is the state’s position that the hearing held [Tuesday] night (June 29, 2021) could not legally be held and any action taken at that meeting related to the budget is null and void,” said Department of Revenue spokesperson Paul Grimaldi. “No final determination as to next steps has been made by the Department at this time.”
Neither Elorza’s office nor the City Council responded to request for comment at time of publication.