Introduction
Providence is the capital and most populous City of the state of Rhode Island, founded in 1636 by religious dissenter Roger Williams, who sought refuge from persecution in the Massachusetts Bay Colony. The City quickly became a significant center of trade and industry and was one of the wealthiest cities in the colonies during the 18th century. During the 19th century, Providence experienced a period of industrialization and urbanization, and the City’s population proliferated. In the 20th century, Providence faced challenges such as poverty and crime but has undergone a resurgence in recent years with new development and revitalization projects. The City is known for its rich history, diverse population, and vibrant culture.
Providence is located in the northeastern United States, at the head of Narragansett Bay. The City is known for its hilly terrain, with many parks and open spaces. The Providence River runs through the City, dividing it into the East and West Sides. The City is also home to several universities and colleges, including Brown University and Rhode Island School of Design. The City is relatively small and easy to navigate, with many walkable neighborhoods and a well-connected public transportation system. Providence is also known for its historic architecture, with many preserved buildings from the colonial and Victorian eras (Frickel & Tollefson, 2022).
Providence is a diverse city with a population of around 180,000 people. The City has a significant African American population and many immigrants from various countries, including Portugal, Italy, and Latin America. The City also has a significant LGBTQ+ population. According to the census data, Providence has a high poverty rate, with around 27% of the population living below the poverty line. The City is also home to several universities and colleges, contributing to a large student population.
Additionally, the City has a relatively young population, with a median age of around 30 years. Providence is governed by a mayor-council form of government, with the current mayor being Jorge Elorza. The City has a strong Democratic Party presence, and the Democratic Party also controls the city council. The mayor is responsible for the overall administration of the City and is elected every four years. The city council comprises 15 members representing each of the City’s neighborhoods and is responsible for passing laws and regulations. The City also has a strong tradition of community activism and grassroots politics (Bell et al., 2020). The literature will examine Providence city, with special attention to its goals, the city and budget organization, the achievement of the goals, the financial health of the City, and the recommendations to enable it achieve the goals.
Goals
The City’s plan prioritizes secure housing and safety to improve its citizens’ lives. The City is also tackling the issue of unsustainable pension payments. The City urges voters to approve a Pension Obligation Bond to resolve its financial woes. For the past nine years, the City has submitted a tax-free budget. The City is reducing residential and commercial tax rates and raising the homestead exemption to reduce property taxes. Creating community and a sense of belonging in the City is crucial. Developing a sense of community aids in this endeavor. There was been a change in the pension system. with three union partners— fire, laborers, and police—also aids the City’s financial situation.
The City focuses its investment on housing. These investments include establishing a source of funding for affordable and better housing, American Rescue Plan funds allocation to better housing and homelessness support, and assisting first-time homebuyers and homeowners with home repairs. The City is renovating abandoned houses and constructing Paragon Mill, the former Barbara Jordan II, and the Superman building. Additionally, the municipal plan must address crime and public safety. This involves minimizing gun crimes and altering the perceptions of criminals.
Additionally, the City is hiring more police officers, installing body cameras, and enhancing recruitment and training. The City’s strategy also includes neighborhood investment. Priority is given to walkers and bicycles in the design of public parks and recreation areas. The City is modernizing 3-1-1 and the Public Works Department to manage complaints and offer basic municipal services. The City is constructing a new DPW headquarters with modern amenities and equipment (Elorza, 2023).
City and budget office organization
The budget office in the City of Providence is organized by departments and agencies, each of which is accountable for its own budget. The budget office collaborates closely with each department and agency to ensure that their budgets correspond with the City’s financial plan as a whole. In addition, the budget office collaborates with the city council and the mayor to ensure that the City’s budget is consistent with its overall goals and mission.
Different parts of the budget office may be responsible for different facets of budgeting, such as forecasting, planning, and control. The forecasting division is responsible for estimating revenues and expenditures for the future fiscal year, whereas the planning section is responsible for identifying cost-saving opportunities and providing investment recommendations for infrastructure and other capital projects. Throughout the year, the control department is responsible for monitoring and controlling the City’s finances to ensure that expenditure remains within budget.
A budget director or chief financial officer oversees the budget office and ensures that it fulfills the City’s financial objectives and goals. The budget office may also employ a group of budget analysts, accountants, and other financial experts to draft and administer the City’s budget. Rebuilding and developing high-performing charter schools are components of the City’s educational agenda. Changing the structure of conventional public schools can improve instruction. Additionally, the City invests in Providence Talks, pre-kindergarten facilities, and family activities such as a $5 Summer Camp. Small enterprises are also a priority for the City—funding, grants, and loans. As the offshore wind business expands, the City is also training its workforce for renewable energy jobs. In addition, restaurants and the arts are crucial to the hotel economy. The City also offers businesses tax advantages. The City is finally addressing the mental health epidemic and systemic issues (Elorza, 2023).
Achieving the goals
Providence has taken steps towards achieving their goals. The City has invested heavily on its public school district. The district’s $130,046,611 Upkeep of Effort (MOE) funding supports student health, early childhood development, infrastructure maintenance, and after school and summer programs. The Providence budget helps kids succeed. One Providence for Youth: Summer Jobs Program earned $1.2 million, The City’s $580,000 and PPSD’s $420,000 fund, a fourth consecutive $1 million citywide Summer Learning initiative. Award-winning early intervention program Providence Talks got $400,000. FabNewport and Providence Public Libraries donated $165,000 in interactive programming to expand youth access to PVD Young Makers.
Providence After School Alliance receives $350,000 for FY 20’s 27% increase in afterschool support (PASA) maintenance. Maintaining a menstrual hygiene product program and improving school health support cost $40,000, while establishing a healthy school plan and curriculum cost $50,000. Finally, $350,000 in early education facilities to increase Providence’s four-hour seats.
The health and safety of all citizens, but especially those who are vulnerable and have been seriously impacted, is prioritized in the Providence community budget for Fiscal Year 2023. The Providence Business Loan Fund will provide interest-free loans to small businesses, and the budget will prioritize programs that help women- and minority-owned enterprises. In addition to continuing funding for doula services, money has been set aside to assist street outreach organizations in the downtown and Broad Street regions.
The Providence Housing Trust was established in FY21 with the use of a $25,000,000 PRA Special Obligation Bond, and 10% of tax revenue from TSA projects will be set aside to pay for debt service on the bond. Moreover, money has been allocated to help charities that offer legal aid for tenants and landlords, including evictions. The “A Hand Up” program at Amos House and PVDFest, the City’s defining festival of the arts, music, and culture in the City’s central business district, will continue to receive funding from the City. (McGuinness & Schank, 2023).
Spending on essential infrastructure will also be maintained through FY23. The City of Providence borrowed $115 million for capital projects in FY20, funding the FY20 investments planned for that year as well as FY20 investments made to increase transit options and pedestrian accessibility throughout the City’s 25 different communities. Providence’s municipal government is committed to providing its citizens with open and accessible services, even in the face of a worldwide health emergency. A tangible tax exemption for businesses with tangible assets of less than $10,000 will be maintained as part of the budget, providing full tangible tax relief to almost 2,600 small business owners. Funding for an extra police academy with fifty candidates and funding for recruitment of more fire academy members are also included, as is an increase in the Homestead Exemption from 40% to 45%. (Stumberg & Vander, 2019).
The online licensing system of the City will continue to thrive, and the online permitting system of the City’s Inspections & Standards will be updated to a more user-friendly style, thanks to funding included in the budget. The PVD 311 system has reached over 21,000 users and closed over 90,000 complaints, demonstrating the government’s ability to continue expanding this popular public-service access-to-government tool. A new phone system has been launched by PVD 311 that allows employees to work remotely and connects residents directly with a constituent representative who will be able to assist them in their preferred language rather than having to bounce their call from agent to agent. The budget maintains a $100,000 appropriation for a “Rainy Day Fund,” notwithstanding the uncertainty of the pandemic’s outcome. It would appear, on the basis of the data that is shown on the website of the Controller’s Office in Providence, Rhode Island, that the City has made efforts in recent years to enhance its overall financial health (Chalek, 2019).
For instance, the City has been able to keep a balanced budget for the past few years, as shown by the Financial Reports. Both the City’s revenues and expenditures have remained generally steady over this time period. This is an encouraging indicator because it shows that the City is not overspending and is not running a deficit at the moment.
In addition, according to the reports, the City has been successful in preserving a healthy reserve position, meeting the minimum reserve balance requirement of 8% of the General Fund. This requirement has been in place since 2007. This is a good indication, since it implies that the City is well-prepared to deal with unforeseen occurrences, which is a very encouraging one.
Financial Health
Based on the statistics supplied in the document, it appears the City of Providence has made tremendous strides in the past seven years to improve its financial health. The document indicates that the City has turned a deficit of more than $20 million into a surplus of about $30 million, the first “actual” surplus of that scale in probably 50 years. Credit rating of the City has also improved, going from “almost junk” to “investment grade,” and Fitch rating agency has issued the City’s first positive outlook in ten years. Being seventh consecutive year, the City has presented a budget without increasing tax rates, it indicates that the City’s revenues have been sufficient to cover its expenditures, a sign of good financial health. In addition, the City is focusing on tackling the persistent issue of unsustainable pension payments by asking voters to support a Pension Obligation Bond, which will assist the City in addressing the pension obligations.
The City’s fiscal management and the recent pension reform it enacted with Laborers, Fire, and Police are credited with making it possible for the City to present this budget for the eighth year in a row without raising tax rates. Many homeowners may see their tax bills rise since property prices have risen so rapidly over the past three years. However, the homestead exemption was raised and the residential tax rate was lowered by 25%, thus the overall increase was just 8%.\. The City of Providence’s financial health has greatly improved in recent years, with a surplus of about $30 million and an investment-grade credit rating. In addition, the City has implemented pension reform and, for the eighth consecutive year, presented a budget with no hiking tax rates (Elorza, 2023). Additionally, the City has experienced a rise in population and substantial housing investment, with a designated revenue stream for affordable housing and the repair of abandoned dwellings. The report also addresses housing costs and a rise in gun-related crimes but notes that there are grounds for cautious optimism as shooting incidents had decreased by 50 percent from the previous year. The statement also highlights the City’s efforts to enhance public safety, including investments in the police department, the hiring of additional officers, an increase in officer diversity, and the incorporation of technology such as body cameras. In general, the publication paints a favorable picture of the financial health and stability of the City of Providence.
Recommendation
In order to achieve its goals and improve its financial condition, Providence city management could take several concrete steps. One key step would be to continuously monitor the City’s financial performance and take corrective action as needed. This could involve regularly reviewing financial reports and identifying areas where the City is falling short of its goals.
Another important step would be to maintain the momentum of the Pension Obligation Bond and address the continuing issue of unsupportable pension payments. This could involve developing strategies for reducing the City’s long-term liabilities and ensuring that pension payments are sustainable over the long term. Additionally, the city management could increase its efforts towards investing in housing by allocating more funds to affordable housing, homelessness supports, and first-time homebuyers. This could involve creating new programs and initiatives that make it easier for low-income residents to access affordable housing and providing financial assistance to help first-time homebuyers get into the housing market (Liu, 2022).
To improve public safety, the city management could increase police spending, implement new technologies like body cams, and revamp police recruitment and training to increase public safety. This could involve increasing the number of officers on the force, providing more training and resources to officers, and investing in new technologies that help officers do their jobs more effectively. To encourage economic growth, the city management could incentivize private sector investment and support local businesses. This could involve providing tax breaks and other financial incentives to businesses that invest in the City and supporting local businesses through grants, loans, and other forms of financial assistance (Reidy et al.,2021).
Finally, the city management could invest in infrastructure such as transportation, water, and sanitation systems to make the City more attractive to residents and business owners. This could involve upgrading existing infrastructure, building new roads and transportation systems, and investing in new technologies that improve the quality of life for residents and attract new businesses to the City.
References
Bell, S., Marlow, T., Wombacher, K., Hitt, A., Parikh, N., Zsom, A., & Frickel, S. (2020). Automated data extraction from historical city directories: The rise and fall of mid-century gas stations in Providence, RI. Plos one, 15(8), e0220219.
Chalek, M. R. (2019). Analysis of Secondary Topics Identified as Inconsistent Between Title 17 of the Newport Code of Ordinances and the 2017 City of Newport Comprehensive Plan. Policy.
Elorza, J. O. (2023). City of Providence Rhode Island Fiscal Year 2023 General Fund Budget Summary.
Frickel, S., & Tollefson, J. (2022). When Environmental Inequality Racialized: Historical Evidence from Providence, Rhode Island. Socius, 8, 23780231221127541.
Liu, L. (2022). Subnational debt: developing a sustainable market. In The Sustainability of Asia’s Debt (pp. 167-187). Edward Elgar Publishing.
McGuinness, T. D., & Schank, H. (2023). Power to the public: The promise of public interest technology. Princeton University Press.
Reidy, D. E., Huntington, C., Smith IV, H. W., Bogen, K. W., Estefan, L. F., & Orchowski, L. M. (2021). Community-level risk & protective correlates of violent crimes. Preventive medicine, 142, 106380.
Stumberg, R., & Vander Meulen, N. (2019). Supply chain transparency in public procurement: lessons from the apparel sector. In Public Procurement and Human Rights (pp. 206-223). Edward Elgar Publishing.
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