At the June 25 special meeting of the Johnston Town Council, the ordinance appropriating the proposed $110,453,388 supporting the town's governmental budget for the 2019 fiscal year was approved. But perhaps the meeting's biggest reveal was hinted at by Mayor Joseph Polisena, who suggested that a substantial business development may soon come to town.
"I've spoken to most of you about the Hartford Avenue project, with the extension of sewer and water lines. This will guarantee a strong economic future for our town," said Mayor Joseph Polisena to the council. "Many of you know through my discussions and what we've told you of what may come to Hartford Avenue and Route 6. It'll be incredible if it happens. The potential business that's looking to make Johnston their home will put Johnston on the map and put us on a nationwide platform."
While touting the potential development, Polisena was reticent to reveal the name of the company that may be looking to develop a site in town at this time. Last year, the 111-acre site off Hartford Avenue near the Route 295 south on-ramp was proposed by the town to be the site for Amazon HQ2, a second North American headquarters. The town had sent their request, containing maps of the proposed development site along with a description of infrastructure, including the developments of the Hartford Avenue sewer and water line extension project to the state.
The state’s plan, which featured sites in Pawtucket, Central Falls and the “Superman” building in downtown Providence, was ultimately turned down, and Johnston’s Hartford Avenue proposal was not included in the final offer to Amazon.
In his budget presentation, the mayor said that he was "proud to announce" that there will be no tax increase for the third year in a row. The mayor attributed strong growth and new businesses that have stabilized the tax base, downsizing departments, and aggressive back tax collections as reasons for no tax increase. He cited a bond rating of A- from Standard and Poor, which is investment grade, and an A3 rating from Moody's, also an investment grade.
He mentioned funding in the budget for other post employment benefits (OPEB) increased by approximately $730,000 for a total of about $2.2 million. He said the town's financial improvement plan had an increase of contributions of $262,650 that will assist with pensions.
"We fixed our pension issue, and our pension plans. We were very, very happy that we fixed that," said Polisena. "That was basically an albatross off of not only our taxpayers' neck but off of us as elected officials."
Polisena then mentioned recent pay increases negotiated and agreed to with different unions, including a three percent pay increase for police and fire personnel. The mayor added that overtime and callbacks in the budget reflects "reasonable estimates," especially for the Fire Department. He provided information to the council about five firefighters that have been out of service for several years due to injuries, which affects callbacks and overtime.
Two new fire trucks, which cost approximately $980,000 for both, were paid for with "permit fees from Citizens Bank" from fire inspections conducted at the campus off of Greenville Avenue. All four fire stations in town now have at least one new fire truck.
Fire and police budgets were increased year over year. Last year, the fire department's budget was approved at $17,257,635, while this year that allotment totals $18,840,138. The police department's budget increased by $987,195, to a total of $16,471,692.
Polisena also stated $145,000 was budgeted for the upcoming statistical reevaluation. He then provided information about the town's seven-year dam repair agreement with the Department of Environmental Management and said that work and the budget for repairs are "right on target."
The budget for street lighting increased by $350,000 to a total of $850,000 to reflect changes from an annual audit. Polisena also highlighted savings incurred from building improvements in the form of heating, air conditioning and LED lighting.
"The General Fund balance as of June 30, 2017 was $24,741,534, which is a cumulative surplus or a rainy day fund. I think that could probably handle a 100-year storm, because there's enough money in there," said the mayor.
Polisena congratulated the School Committee and Dr. Bernard DiLullo Jr., for their work on their budget and for recent accolades the district has received. He touted scholarships awarded through agreements reached with energy providers in town.
Funding for Johnston's schools decreased this year due to a cut in state aid, from $18,259,774 last year to $17,811,270 this year. The council approved a budget for education of $56,545,285.
The mayor also said the town is currently in talks with the Rhode Island Resource Recovery Corporation (RIRRC) to renew the town's community host agreement.
"There's 14 more years left for Resource Recovery. So, we're obviously going to try to get the best amount of money we can. I don't know what happens in 14 years from now when that funding stops," said the mayor. "We're in strong negotiations with them now."
Polisena reiterated that the town did not have a tax increase over the last two years and there is no tax increase in this year's budget. The total property tax levy this year is $67,645,325, with a collection rate anticipated of approximately 95 percent.
With this budget, Johnston's property tax rate will remain at $27.49 per $1,000 of assessed value for real estate, and $59.71 per $1,000 of assessed valuation for tangible property. The tax rate for motor vehicles also remains at a rate of $41.46 per $1,000.
Other approved budgets for departments of note include $703,964 for the public library, $1,107,669 for parks and recreation, and $2,023,750 for streets and highways.
Former Councilman Ernest Pitochelli was the only member of the public to present questions to the council regarding the budget. He asked why the school budget is less than last year, contract expiration dates, and timing of the release of the budget information. The budget went on to receive unanimous approval from the council, and is available for review at Town Hall.
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