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Wednesday, September 18, 2024

Charlestown finances and taxes – Your choice on November 5

Do not let the crowd that messed up, lied and then covered up get back into office

By Will Collette

The CCA's 2024 campaign slogan
There are many reasons why Charlestown voters should reject the effort by the Charlestown Citizens Alliance (CCA) to regain control of Charlestown. I hope to cover them all before election day.

But for starters, let’s talk about the biggie: Can you trust the CCA to manage your money?

In 2020, the CCA proved it can’t be trusted with taxpayer funds. The lead evidence was the “$3 million Oopsie.” This was a grave problem that the CCA called a “misallocation.” 

$3 million in town funds went walkabout, unnoticed by the CCA financial brain trust of ex-Town Administrator Mark Stankiewicz and ex-Budget Commission chair Richard Sartor for almost two years. The error was finally spotted by the town’s ex-auditor and duly reported.

This sparked panic within the CCA as they first tried to find a word other than “lost” to describe the screw-up. They settled on "misallocation." Their word, not mine.

Next, they searched for someone to blame since as we all know, the CCA is always right. They ended up scapegoating the auditors who found the problem. 

Then they tried to distract and minimize the problem using laughable analogies. Ruth Platner compared it to parking your car in the wrong place. Bonnie Van Slyke came up with some story about a ladder that I've never quite understood.

Finally they fell back on that old “Hey, how about that low tax rate?” tripe.

During all these machinations, they had their pet Town Administrator Stankiewicz use every trick in the book to avoid disclosing town financial records that would have brought some disinfecting sunshine to this issue. The CCA also blocked even a public discussion of the need for an outside financial review and instead let Sartor and Stanky review themselves.

Two years later, the CCA and especially their mouthpiece Council candidate Bonnita Van Slyke are now denying there was ever any problem, claiming their political opponents made it up. I wish I was that clever.

Van Slyke personally attacked me for even raising the issue, saying my reporting hurts the reputation of such a stellar personality as Stankiewicz.

The $3 million oopsie was and is a flashpoint in 10 years of CCA financial shenanigans. Before the “oopsie” went public, the worst abuses were questionable land deals promoted by Planning Commissar Ruth Platner who is now running for Council. Ruth never met a piece of undeveloped land she didn’t want to buy, regardless of price, using your money of course.

Time and again, she pushed deals where owners (often CCA affiliates like the Sachem Passage Association) would be paid far more than the land’s assessed values, often based on appraisals that relied on fictitious conditions. Stankiewicz helped by clamping down on the release of public records on these corrupt deals.

“But the tax rate!”

The CCA ran Charlestown from 2011 to 2023.
 Source: Charlestown Tax Assessor
To hear the CCA tell it, the only thing that matters to taxpayers is the property tax rate which they claimed was ultra-low, due to their genius. That, plus providing virtually no municipal services and relying on rising property values to buttress the tax base.

First, a few facts: under the CCA, the tax rate went up pretty consistently as the table to the right shows. 

After the voters gave the CCA the boot in 2020, the tax rate has plummeted to its lowest level in decades, going from $8.17 when the CCA was booted to the current $5.78.

But the tax rate is only half the equation. What you actually pay in taxes is the tax rate multiplied by your property assessment. 

Assessments have skyrocketed due to shorefront purchases by rich New York and Connecticut folks who discovered Charlestown is way cheaper than the Hamptons.

Their multi-million-dollar purchases drove up property assessments generally to the point where Charlestown has become even more unaffordable and we all pay taxes based on property values that we are unlikely to ever appreciate when we eventually sell our homes. 

The most recent reassessment increased the taxable value of our home by 65% to a level I can't imagine in my wildest dreams ever getting should we sell. Unless you’ve got a shoreline property, your assessment probably does not reflect market reality.

Even Van Slyke found that out when she tried to sell her waterfront Arnolda estate for $3 million but ended up having to settle for $2 million.

An economy out of balance

This East Beach Road property was assessed at
$1,967,700 and just sold for $3.65 million.
The CCA left the current Council majority from Charlestown Residents United (CRU) a large and complicated mess to clean up.

Actions have consequences. The CCA’s decade of reliance on rich people buying beach property and tourists flocking in during the summer has skewed our economy. 

While those beachfront owners pay a large portion of town taxes, they plus tourists triple the town’s population during the summer.

We have to provide – and pay for – a town infrastructure needed to accommodate them. Other seaside towns have the same problem and have chosen to resolve this tax inequity through homestead tax credits

These credits cut the property taxes of permanent residents to offset the cost imposed by visitors and temporary residents. While Homestead credits are working well in Narragansett, South Kingstown, Newport and North Kingstown, the CCA adamantly opposed a Democratic proposal for a Charlestown Homestead Tax Credit.

The CCA also turned a blind eye to tax rip-offs by Charlestown’s two “fake” fire districts – Shady Harbor and Central Quonnie. Between them, these homeowner associations (HOAs) in disguise own hundreds of millions of dollars in prime beach property and pay little or no property taxes.

We are long past the time to strip the fire district designation from these associations that do not provide actual fire protection. It’s insulting to real fire fighters and a tax rip-off. While state legislation may be needed to completely resolve this embarrassment, Charlestown should immediately begin taxing their properties at real value.

They’ll sue of course. As The Public’s Radio South County Bureau Chief Alex Nunes has chronicled, fake fire districts from Bonnet Shores to Watch Hill file lawsuits anytime anybody challenges them on any issue. I believe this is a battle worth fighting and one I believe we can win.

We could easily fund a Homestead Tax Credit by making the fake fire districts pay their fair share of taxes.

We could also fund a special tax credit for fire fighters who nol only deserve our praise and thanks, but might also help alleviate the shortage of volunteers. Rep. Teresa Tanzi (D) got the General Assembly to pass legislation authorizing a fire fighter tax credit in South Kingstown.

Some other problems in the Charlestown economy

The real tax question is tax fairness, not the tax rate. Affluent Charlestown property owners can use fake fire districts and loopholes in conservation law to cut their taxes while the CCA blocks tax credits for working families.

Charlestown needs to diversify its economy and not simply rely on minimum and sub-minimum wage jobs servicing tourists and part-time residents. The people needed to provide those services can’t afford to live in Charlestown. The CCA has made it even harder by making Charlestown the only mainland Rhode Island town without RIPTA service.

Contrary to CCA claims, Charlestown does not need an overly large budget surplus. Paying cash for capital investments, including the CCA’s shady land deals, just jacks up taxes.

For years, the CCA has known about mis-zoningproperties undeservedly designated for uses that lower taxes. Planning Commissar Ruth Platner promised to fix this problem in 2012. Twelve years later and she hasn’t done it. Yet she wants you to elect her to the Town Council.

Choose wisely in November. The CCA candidates are no longer simply listed as "independents" (as if they ever were). Most CCA candidates are co-mingled with the CRU slate as either Democrats or Republicans although none of them carry town party endorsements. 

Watch your mailboxes for campaign flyers. If you want to prevent a return financial mismanagement, DON'T vote for the CCA candidates and instead cast your votes for the CRU slate.