Providence Mayor Elorza signs final budget of his term; fire chief's salary defunded

PROVIDENCE — Mayor Jorge Elorza on Friday signed the final city budget of his term at a time when home values will mean higher taxes for residents. 

The $568-million budget for fiscal year 2023 slashes the residential tax rate to $17.80 per $1,000 of assessed value, and the commercial rate to $35.40 per $1,000.

According to Elorza, once the new rates take effect, Providence will have the lowest property taxes in nearly all of the state.

"To all the council people and to everyone out there who I’m sure has heard, 'Oh, we can’t afford to buy a house in Providence. Tax rates are too expensive,' that is not true whatsoever," the mayor said.

Elorza said his administration brought about the first eight-year stretch in at least seven decades in which there were no tax hikes.

But that doesn't mean residents won't end up with a larger tax bill. The city's internal auditor determined that, on average since the last revaluation, residential property values rose 46% while commercial property values rose 15%.

See budget highlights here:Mayor Jorge Elorza unveils Providence budget proposal with 4% increase in tax levy

Read council members' concerns here:Providence city councilors pass new tax rates, despite worries about housing crisis

Fire chief's salary defunded

One significant change in the coming year's budget is the defunding of the salary of the fire chief, a position Public Safety Commissioner Steven Paré has held in an acting capacity since 2015.

Elorza opposed the defunding, calling it "an ongoing sort of dispute," but made peace with the budget despite the council's decision.

"In this final budget, I guess for accounting purposes, some things got changed, but in terms of being able to provide public safety services, nothing changes," he said.

Council President John Igliozzi, who hinted at his past differences with the mayor, delivered a message of unity.

"We don’t always agree on everything," Igliozzi said. "But we always agree on one thing: We try to do what’s best for the city of Providence."