By DONNA KENNY KIRWAN

PAWTUCKET — In keeping with the lean economic times, the administration of Mayor James Doyle is proposing a budget with a modest tax increase, but one that also requires concessions on the part of city employees and their unions.
The proposed plan would increase spending in the city’s operating budget from $106.6 million in the current year to $108.8 million for next year. Most of the increase would be paid for by the higher property tax rate. When combined with the proposed budget (based on actual revenue) for the School Department of $94,484,052, the total proposed budget for fiscal year 2009 is $203.3 million.

According to Finance Director Ronald Wunschel, if the proposal passed without any changes, the residential property tax rate would have to be increased to 2.9 percent, or 59 cents per $1,000 of assessed valuation.
This would bring the residential tax rate from the current $11.86 per $1,000 of assessed valuation to $12.45 per $1,000. With the median price of a Pawtucket home valued at $230,000, the average city homeowner will be paying about $2,864 or roughly $136 more on their annual tax bill.
The entire budget plan, however, is based on the willingness of municipal employees to agree to some fairly substantial concessions, including a pay freeze, higher health insurance co-pays, job furloughs and even lay-offs, Wunschel said.
He declined to provide specifics, saying that the details are still being worked out in bargaining talks with the city’s four
Part of the city’s financial woes stem from the state’s budget crisis, which resulted in a decrease of nearly $4 million in state aid. However, Wunschel said that another key factor is the School Department’s deficit--an accumulated amount that now totals around $3 million.
As part of an agreement that has been reached between the city and school side, the city will be giving the schools an additional roughly $746,000 a year for the next four years. This amount has been built into the tax rate and reflects about 14 cents of the total 59 cent increase per $1,000 of assessed valuation that is being proposed.
Wunschel said that the budget will be discussed with municipal department heads during two workshops that are scheduled for May 28 and 29. He expects the mayor to formally present the budget on June 6, after which there will be an opportunity for public comment.