The Town Council on Monday voted to have Solicitor Andrew Teitz redraft a resolution to establish a policy for the state-mandated budget cap.
The redrafted resolution will be voted on at the Town Council meeting on March 22.
The policy establishes provisions for when the town is allowed to exceed the budget cap set by the state. The town is only allowed to exceed the cap when it experiences a loss in total non-property tax revenues, it forecasts or experiences a debt service expenditure that exceeds the prior year’s debt service, or the town experiences a substantial growth in its tax base as a result of new construction. The town may also exceed the cap in an emergency situation.
In fiscal year 2011, a Rhode Island municipality may levy a tax no more than 4.5 percent in excess of the amount levied and certified by that city or town in fiscal year 2010. [...]

Original post by Derek Vital