Council President Peter S. Mancini submitted to the City Clerk his appointments to the Commission to Study Tax-Exempts, which was established by Council resolution in August. The appointments will be presented at the Council meeting on Thursday, October 1, 2009.
The Commission will include members from the business community, tax-exempt institutions, a community organization, a labor organization, a Council member and a Council member designee, as well as a mayoral appointee. “I am impressed by the caliber of the volunteers who have agreed to serve on this commission, as well as by their interest in the issue, and their enthusiasm to get started on the important responsibilities under the commission’s charge,” Mancini stated.
According to the correspondence delivered to the City Clerk on September 24th, Mancini’s appointments are: Michael Van Leesten, president of the Van Leesten Group, LLC; Camille F. Vella-Wilkerson, a consultant/trainer and U.S. Navy Veteran; Francis Smith, executive director of the Smith Hill Community Development Corporation; Steven Smith, president of the Providence Teachers Union; Daniel Egan, president of the Association of Independent Colleges and Universities; John “Jack” Sutherland, chief financial officer of CARE New England Health System; Councilman Luis A. Aponte; and Representative John Carnevale (designee of Councilman John J. Lombardi). Mancini appointed Van Leesten as chair of the commission.
The Mayor has not yet submitted the name of his appointee to the City Clerk.
Lombardi, who sponsored the Council resolution, stated that, “The resolution required that the Commission membership be inclusive and well-rounded. The individuals that Council President Mancini has appointed certainly reflect that requirement; as a result, I expect the Commission’s recommendations will be realistic and have broad-based support.”
According to the resolution, the Commission will review the impact of tax-exempt institutions on the city’s tax base and make recommendations on best practices to establish a standard level of contributions by major tax-exempt institutions to the City. The recommendations will be based on the findings of the Commission with regard to 1) the costs associated with providing City services to tax-exempt institutions; 2) a review of the financial and programmatic contributions made by tax-exempt institutions to municipalities in selected cities nationwide, including best practices in public-private partnerships; 3) standard level of financial and programmatic contributions to be met by all large-scale tax-exempts in Providence; 4) methodologies for valuing community partnerships made by tax-exempt institutions; 5) necessary City and State legislation; and 6), any additional means to mitigate the impact of tax-exempt institutions on the City’s tax base, in order to establish a fair and equitable approach to generating revenue to support City services.
“Tax-exempt institutions in Providence are an integral part of the culture, creativity, economy, and research and development activities that make our city great,” Mancini said. “Yet, the financial benefit (i.e. taxes) from these activities goes directly to the State of Rhode Island, while the continued expansion of tax-exempts in Providence constricts the city’s tax base, and limits our ability to raise revenue.”
Mancini said that he is hopeful that the Commission will recommend solutions that balance these considerations, and acknowledge both the benefits and challenges Providence has as host to numerous of non-taxable entities.
After the appointments are received by the Council, Commission Chair Van Leesten will call an organizational meeting.
