WHEREAS, The Town of Tiverton desires to establish a local cap on the amount of property tax levy increase, placing limits on itself above and beyond requirements of state law;
NOW, THEREFORE, IT IS HEREBY ORDAINED by the Town Council of Tiverton, Rhode Island, that the following Section 74-2 is added to Article I of Chapter 74 of the Ordinances of the Town of Tiverton:
CHAPTER 74. TAXATION
ARTICLE I. IN GENERAL
Sec. 74-1. Licenses and permits of delinquent taxpayers . . . .
Sec. 74-2. Cap on Maximum Property Tax Levy Increase
(a) Unless otherwise permitted by section (b) below, in fiscal year 2012, the Town shall not increase its property tax levy (including motor vehicle tax) by more than four and one-quarter percent (4.25%) in excess of the total amount levied and certified by the Town in fiscal year 2011. In fiscal year 2013 and in each fiscal year thereafter, the Town shall not increase its property tax levy (including motor vehicle tax) more than four percent (4%) in excess of the total amount levied and certified by the Town for its previous fiscal year.
(b) The amount levied by the Town may exceed the percentage increase as specified in subsection (a) only if any levy in excess of the percentage increase specified in subsection (a) shall be approved by the majority of the electors present and voting at a Financial Town Meeting and also approved by the affirmative vote of at least four-fifths (4/5) of the full membership of the Town Council prior to, and with specific notice of included with, the published notices, warnings, and warrants required by Chapter 35 (Property Tax and Fiscal Disclosure) of Title 44 of the General Laws of Rhode Island and the Town Charter, and also only if the Town qualifies under one or more of the following provisions:
(1) The Town forecasts or experiences a loss in total non-property tax revenues and the loss is certified by the Rhode Island department of revenue.
(2) The Town experiences or anticipates an emergency situation, which causes or will cause the levy to exceed the percentage increase as specified in subsection (a). In the event of an emergency or an anticipated emergency, the Town shall notify the auditor general who shall certify the existence or anticipated existence of the emergency. Without limiting the generality of the foregoing, an emergency shall be deemed to exist when the Town experiences or anticipates health insurance costs, retirement contributions or utility expenditures which exceed the prior fiscal year’s health insurance costs, retirement contributions or utility expenditures by a percentage greater than three (3) times the percentage increase as specified in subsection (a).
(3) The Town forecasts or experiences debt services expenditures which exceed the prior year’s debt service expenditures by an amount greater than the percentage increase as specified in subsection (a) and which are the result of bonded debt issued in a manner consistent with general law or a special act. In the event of the debt service increase, the Town shall notify the department of revenue which shall certify the debt service increase above the percentage increase as specified in subsection (a) the prior year’s debt service. No action approving or disapproving exceeding a levy cap under the provisions of this section affects the requirement to pay obligations legally entered into by the Town.
(4) The Town experiences substantial growth in its tax base as the result of major new construction which necessitates either significant infrastructure or school housing expenditures by the Town or a significant increase in the need for essential municipal services and such increase in expenditures or demand for services is certified by the department of revenue.
(c) Notwithstanding subsections (a) and (b) above, the Town Council shall not submit to the Budget Committee, any proposed budget, including expenditure resolutions, for the municipal operation of the Town, including the Town Clerk and Treasurer but excluding the School Committee’s proposed budget (the “Municipal Budget”) for any fiscal year in excess of the prior fiscal year by more than two and one half (2½ %) percent unless all of and to the extent that the following conditions (1) through (4) are met:
(1) At least one of the following five subconditions occurs:
a. The Town experiences a hurricane, flood, or other significant natural disaster requiring extraordinary expenditures by the Town.
b. The Town anticipates, based on documented evidence, or experiences an increase in health insurance costs, retirement contributions, or utility expenditures for the fiscal year exceeding the prior fiscal year’s health insurance costs, retirement contributions, or utility expenditures, respectively, by a percentage greater than ten percent (10%).
c. The Town anticipates, based on documented evidence, or experiences debt service expenditures for the fiscal year exceeding debt service expenditures in the prior fiscal year by more than two and one half percent (2½ %).
d. The Town experiences current year growth in its tax base in excess of two and one-half percent (2½ %) over the preceding year as the result of new construction or development. Changes in the value of the tax base due to revaluation alone shall not qualify for this subcondition.
e. The Town anticipates, based on documented evidence, or experiences a decrease in non-property tax revenues for the fiscal year in excess of two and one-half percent (2 ½ %) of the previous year’s property tax levy. Depletion of the Town’s general reserves shall not qualify for this subcondition.
(2) No later than ten (10) days prior to its final vote on the proposed Municipal Budget, the Town Council approves such Municipal Budget amount by the affirmative votes of at least two thirds (2/3rds) of the full membership of the Town Council.
(3) To the extent that the proposed Municipal Budget also causes the maximum property tax levy to exceed any cap established by state law, such state law and any applicable regulations are satisfied and required approvals obtained.
(d) The Town Council declares the limitations of subsection (c) above to be the policy of the Town of Tiverton, and urges the Budget Committee and the School Committee to attempt at all times to meet the goal of a budget which does not require a tax levy increase of more than two and one-half percent (2 ½ %). In furtherance thereof, wherever any ambiguity exists in law or ordinance or policy, such law or ordinance or policy shall be interpreted by all entities of the Town to support this goal. Specific notice of any proposed increase of the tax levy above such two and one-half percent (2 ½ %) shall be included with the notices, warnings, and warrants required by Chapter 35 (Property Tax and Fiscal Disclosure) of Title 44 of the General Laws of Rhode Island and the Town Charter.
(e) Notwithstanding anything herein to the contrary, nothing in this Ordinance shall be deemed to impair the authority of the Town or the Financial Town Meeting, under Article XIII (Home Rule) of the Rhode Island Constitution, or Chapter 3 (Town Meetings) or Chapter 5 (Councils and Governing Bodies) of Title 45 of the General Laws of Rhode Island. In the event that any section or subsection of this Ordinance may be found to be invalid by a court of law, it shall not affect the validity of any other sections of this Ordinance.
Secs. 74-3–74-25. Reserved.
IT IS HEREBY FURTHER ORDAINED by the Town Council of Tiverton, Rhode Island, that this Ordinance shall become effective upon passage.
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