Delayed because the state budget for the current fiscal year wasn’t approved until last month and the rate of state reimbursement as part of the motor vehicle was unknown, Mayor Frank Picozzi announced Tuesday that the bills will be in the mail this week.

Picozzi was apologetic for the delay in the billing and critical of the previous administration for not moving ahead with the bills, as many municipalities did. As it is now, people will have up until June 15 to pay the bill should they choose to pay over four installments.

Nonetheless, the mayor said the compressed payment schedule could prove difficult for some taxpayers working with a tight budget.

“I know it’s frustrating receiving a bill with such a short period of time between payments, but the payment plan has to be completed by the end of June to be part of this year’s budget and be eligible for reimbursement from the state,” he said in a statement.

But there is a positive, and the mayor was sure to point it out. As state legislators acted to implement the next step in eliminating the tax, motor vehicle owners will see an average 11 percent decline in their bill.

City Finance Director Peder Schaefer explained two of the three factors designed to eliminate the vehicle excise tax are impacting the city bills. Those being taxed on their cars – many have already come off the tax rolls because exemptions exceed the value of their vehicles – will see a reduction in the assessed value of their vehicle. They can also expect an increase in the exemption. What won’t change is the tax rate of $34.60 per $1,000 of valuation. Under the phase out plan, the threshold for the rate dropped to $35 this year, Schaefer said.

He said car tax revenues are projected to bring in $17 million. In addition, the state will pay the city about $9.5 million, but only once the city has issued bills and payments are received.

“Warwick is the largest car tax [receipts] in the state,” Schaefer said.

Asked about the city’s overall financial position, Schaefer said the city is behind in the collection of budgeted tax revenues because of the delay in the car tax bills, as would be expected.

“We’re behind on cash,” he said.

Schaefer is in the process of evaluating property tax revenues. He projected the city will receive more state aid than budgeted for the current fiscal year, partially because of aid related to the pandemic. He is estimating that PILOT, or payment in lieu of taxes, funding will be an additional $200,000, car taxes an added $1.3 million, and per capita aid an additional $600,000, for a total of $2.1 million.

“Of course,” he wrote in an email, “there will be losses relative to estimates in the meals tax, airport related fees, and the hotel tax. We are not there yet on coming up with a final loss estimate, but the additional state aid will go a long way to addressing those losses. State School aid was fully funded using Federal resources.”

On the other side of the ledger – expenditures – he identified the fire budget as an issue.

Picozzi said the department has 18 unfilled vacancies and that overtime costs are running higher than budgeted.

As for the audit for the 2020 fiscal year ending last June 30, Schaefer said his review of the totals don’t differ dramatically than those Mayor Joseph J. Solomon released before leaving office.

While numbers may be the same, Picozzi said Solomon put a false spin on them. He noted that the mayor touted a city surplus where in reality the city ran a deficit that was overcome by a school surplus. Schaefer put the city deficit for the year at $1.3 million and the school surplus at $3.2 million for a net surplus of $1.9 million.

Schaefer put the overall reserve fund balance at $31.6 million as of last June. He said the city has asked for an extension of the audit to March 15, although he doesn’t think it will take that long. He said pension asset reports need to be reconciled, but he doesn’t see that as altering the numbers.

The payment schedule for motor vehicles taxes is: Feb. 15, March 15, May 15 and June 15.

Noting the city could use the money, Schaefer said” “Hopefully there are those who chose to make one payment.” Payments in full should be made by Feb. 15.