Floods dry up Warwick's budget

WARWICK, R.I. (WPRI) - Last year's Historic Floods have left a serious drought in Warwick's budget.

The city is facing a $6 million loss in commercial tax revenue.

After last spring, many retailers closed up shop, others are facing a major decline in property values.

Mayor Scott Avedisian says as businesses continue to recover, the impact on the budget is immense. "Between the overall downturn in the economy and businesses in need of flooding relief, it left us in a bad situation."

Now residents may be forced to fork over more of their money to make up the difference.

Mayor Avedisian is proposing an $.80 per $1,000 property tax hike to fill the gap.

If the measure passes, the owner of a $250,000 home would have to pay an extra $200 a year.

The mayor says the money is essential. With many businesses still closed, Avedisian says the floods have the city looking at an uncertain future.

"We see that a lot of them are opening, we have some that are not and we have some still trying to see if they will relocate elsewhere."

The City Council is expected to sit down in the next few weeks to review the budget, they must act on the proposal by June 6.