Government Accountability
Why is Government Accountability important for a livable Newport?
Through special forums and representation at City Council and other civic meetings, the Alliance for a Livable Newport strives to bring an objective view to the matter at hand so that residents can make informed decisions.
Knowledge will forever govern ignorance, and a people who mean to be their own Governors, must arm themselves with the power knowledge gives." -- James Madison, 1822
Town Hall Meeting with General Treasurer Raimondo
The ALN held a town hall meeting with the General Treasurer of Rhode Island, Gina Raimondo, on September 21, 2011, at the Newport CCRI campus. During her opening remarks, Treasurer Raimondo told the audience of approximately 80 people that next fiscal year Newport will have to pay $2.5 million more toward the state retirement fund that it is currently paying. However, she is working with Governor Chaffee to prepare legislation for the General Assembly that will address new proposals for pension changes. These changes are designed to reduce the increased financial burden to communities in the state such as Newport. Some of the proposals that will be considered include reducing or eliminating the 3% COLA payments to state retirees, restructuring of state retirement plans from a defined-benefit to a defined-contribution plan, and extending the age before a retiree could begin receiving benefits. Following her opening remarks, the Treasurer spent the rest of the evening engaging in a lively audience question and answer session.
Treasurer Raimondo was joined by Senate President Theresa Pavia-Weed, Senator from Newport. Senator Paiva-Weed stated that any proposed changes to the existing pension system would be subject to hearings in both House and Senate committees, which would possibly result in changes to the proposed bill. She also praised Treasurer Raimondo for her leadership role in dealing with the financial issues of the state’s pension crisis.
The forum was sponsored by NewportFed Bank.
The Fifth Annual ALN Financial Forum, “Financial Strain and the Discipline to Cope”, was held on September 29, 2011 in the Reading Room at the Newport Public Library. Approximately 35 local residents attended the forum, which was videotaped for later viewing on Public Access TV and via the ALN and other area websites. Ron Becker gave a brief introduction and then turned the lectern over to Fred Best.
Fred Best discussed anticipated increases in Water and Sewer rates for home owners in Newport. Highlights include:
o Proposed water rate increase for FY2012 will add $142/year to a typical residential customer using 15,000 gallons of water per quarter.
o Proposed water rate increases for FY2012 through FY 2015 will add another $457/year.
o These rate increases are included in Docket 4243 that is currently going though the approval process with the Rhode Island Public Utilities Commission (RIPUC). The evidentiary hearing before the RIPUC will begin November 1, 2011 and a decision on the new water rates is expected by mid November.
o The rate increases are to fund the debt service for the new Lawton Valley water treatment plant and the upgrades to the Station One treatment plant. These improvements are mandated by a consent agreement with the Rhode Island Department of Health. The plants must be on line by December 31, 2014. The estimated cost of these improvements is $76-80 million.
o The residential sewer rates approved by the City Council for FY2012 will add $356/year for a typical residential customer using 15,000 gallons of water per quarter.
o A judicial consent decree has been issued and approved the City Council addressing the corrective actions and implementation schedule with the Environmental Protection Agency (EPA)and the Rhode Island Department of Environmental Management (RIDEM) to eliminate combined sewer overflows (CSO’s). The decree included a fine of $170,000, $70,000 in legal fees and the purchase of 500 rain barrels. These costs will be paid from the Water Pollution Control budget. The system master plan to address the CSO problem must be submitted to EPA and RIDEM for review and approval in November 2012.
o Major capital projects completed in 2011 include: the UV treatment plant at Easton’s Beach began operation in May, the Wellington Avenue Sanitary sewer interceptor replacement project was completed in May and the Thames Street sanitary sewer interceptor project was completed in June.
o A CSO stakeholders workgroup was formed in September 2011 to advise the City on the CSO Program activities, as well as, assist with the Program’s public outreach efforts. Part of its mission is to review proposed plans and projects for the CSO Program and provide recommendations to the City about potential benefits and impacts.
o A typical residential customer will see a combined increase of $955/year for the proposed water rate increases and the approved sewer rate increase between now and FY2015. Sewer rate increases for FY 2012 – FY2015 are not known at this time.
Ron Becker discussed the City of Newport’s Fiscal Year 2012 Budget and the financial challenges facing the City. Highlights included:
The difficulty in balancing the budget with reduced revenues;
Problems caused by past mismatching one time revenues and ongoing expenses;
The increase in real property taxes of 3.88%;
The problems caused by transfers between City funds;
The Fire Department’s budget excesses and causes of inefficiencies;
Level funding of the School Department; and
The short term economic outlook and what the City must do to cope.
The presentation was followed by several questions from the attendees.
Ron Becker discussed the City of Newport’s Fiscal Year 2012 Budget and the financial challenges facing the City. Highlights included:
•
The difficulty in balancing the budget with reduced revenues;
The difficulty in balancing the budget with reduced revenues; •Problems caused by past mismatching one time revenues and ongoing expenses;
Problems caused by past mismatching one time revenues and ongoing expenses; •The increase in real property taxes of 3.88%;
The increase in real property taxes of 3.88%; •The problems caused by transfers between City funds;
The problems caused by transfers between City funds; •The Fire Department’s budget excesses and causes of inefficiencies;
The Fire Department’s budget excesses and causes of inefficiencies; •Level funding of the School Department; and
Level funding of the School Department; and •The short term economic outlook and what the City must do to cope.
The short term economic outlook and what the City must do to cope.The presentation was followed by several questions from the attendees.
(Articles contributed by Paul Watters, Ron Becker and Fred Best}
Photo courtesy of Roger Wells
