Cranston Taxes Rose 6 Percent in 6 Years Under Fung

Russ Moore, GoLocal Contributor

Cranston Taxes Rose 6 Percent in 6 Years Under Fung

Cranston Mayor Allan Fung -- will taxes be part of the 2016 campaign debate?
Taxes in Cranston rose just six percent in six years under Cranston Mayor Allan Fung, according to a GoLocalProv review.

"Mayor Fung has managed city finances as efficiently as possible. When he took over there were unfunded liabilities in the pensions. There were structural deficits in the budget. The school department was in debt," said Robert Coupe, Fung's Director of Administration.

A Modest Increase?

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"But he was also able to reign in spending and hold the line on it and once we got out of that fiscal crisis, he was able to keep the tax rate stable for three straight years," said Coupe.

The median residential homeowner's property value has seen a six percent hike under his tenure. The median homeowner's property lies in the middle of the spectrum of all the residential properties in the city. It's not the average, which is the sum of all property values divided by the number of properties. But the median makes for a good representation of the average person. 

The analysis takes into account revaluations, which take place every three years. The analysis also takes into account what the median property value was and what the adopted tax rate was in a given year. That gives an accurate portrayal of what the median homeowner paid.

$228 Increase in Six Years

According to the tax assessor's office, Cranston's median residential property was worth $202,100 in 2009. That was Fung's first year in office. (That value reflected the property's value as of December 31, 2008, as per that year's revaluation.) Since the tax rate was $19.11 per thousand in 2009, the median property owner paid $3,862.12 in taxes. On a weekly basis, the median property taxpayer paid $74.27 in property taxes that year.

Six years later, the median residential house in Cranston is valued at $182,200. (The city's property values haven't recovered from The Great Recession). That's according to last year's revaluation. The current residential tax rate is $22.45. The means the median tax bill in the 2015 year was $4,090.39. Therefore median property taxpayer pays $78.66 each week in property taxes.

Thus, the total median property tax bill has increased by $228.26 over the last 6 years. That's a 5.9 percent increase--less than 1 percent each year.

Fung's Favor, or Issue of Transparency? 

Fung's 2016 opponent, Michael Sepe
The issue will likely play to Fung's favor during this year's mayoral election. It should be the state's most competitive municipal election. There are no statewide contests this year.

As Coupe explained, Fung will tell voters that prudent fiscal management and tough decisions have allowed him to keep a lid on taxes.

The issue of property taxes will likely be just one issue, albeit a major one, in the race.

His opponent, Michael Sepe, an accountant by trade, is the city's Democratic Chairman. Sepe has the backing of the Democratic establishment both city and statewide. 

Sepe, however, said that transparency is "lacking" under the Fung administration.

Reached by phone, Sepe said that while the median property tax hasn't gone up significantly, homeowners in western Cranston, where homes are pricier, have seen more significant tax hikes. 

Sepe also pointed out that increases in sewer fees have burdened homeowners under Fung's tenure, along with certain increases in license fees.

"It's not just taxes, fees have gone up," said Sepe. 

Sepe also said that he was disappointed when he went to Cranston City Hall last week and asked the assessor's office for similar data. The assessor refused to give it to him, he said.  

"I was surprised that he (the assessor) was told to not give out any information without running it by the mayor's office first," sad Sepe. "When I'm mayor, that's not going to be the case. All public information will be given out immediately."

Council Role

Cranston City Council President John Lanni, a retired auditor, took exception to the idea that all the credit should go to Fung. Lanni, a Democrat, is currently serving his third term as Cranston City Council President.

"There's no way the mayor can take all the credit for our budget management when it's the city council that has final say over the adoption of the budget," said Lanni.

"I believe we, on the city council, have done a very good job examining the mayor's budget proposals. In some of those years, we have scaled back his budgets to lessen the tax increases." 

Lanni said that the city council expects to get the mayor's latest budget proposal within the next week or so. Asked about the prospect of a tax increase this year, Lanni laughed. 

"By hook or by crook there's not going to be a tax increase this year," said Lanni. "It's an election year."

Not So Fast, Says Minority Leader 

Republican City Council Majority Leader Michael W. Favicchio disagreed with Lanni's contention that large portions of the credit for Cranston's budget management should go to the city council. He said the council deserves some credit, but that it pales in comparison to that of the mayor's administration. Favicchio also said that the administration has done an excellent job managing the budget and keeping taxes under control.

"The administration is full-time, and the city council is part-time position. so as far as who does most of the work on the budget, I think most of the credit has to go to the administration," said Favicchio. 

"The administration has made budget adoption pretty easy on the city council. They proposed three straight years of no tax increases in the budget and a small tax increase last year."

And if roles were reversed and there was a Democrat Mayor and he were council president instead of minority leader, would he be singing the same tune?

"It's not a partisan issue. It's hard to argue that a part-time body should get half the credit for the job of full-time employees," he said. 


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