CITY BUDGET SEASON UNDERWAY

Monday, April 22, 2024

City Council Workshops Set to Begin This Week
 
NEWPORT, R.I. (MONDAY, APRIL 22, 2024) –The City’s annual budget process is slated to get underway this week as City Councilors meet in a special workshop on the proposed FY2025 Budget on Tuesday, April 23rd.
 
The following day, the Council will meet again in regular session to formally receive the proposed spending plan before hosting a series of additional budget workshops on April, 29th, 30th, May 1st, and May 2nd.
 
Following those sessions, the final budget will be presented to the Council for a first full Public Hearing on May 8th.
 
As outlined in a budget letter from the Interim City Manager, while Newport’s economy remains strong, challenges posed by climate change, housing insecurity, and aging infrastructure all require strategic investment.
 
If approved, the roughly $115 million spending plan, which was underpinned by a recently completed property revaluation, would result in tax rates of $6.98 for year-round residential properties, $10.46 for commercial properties, and $8.22 for non-resident property owners representing an overall tax levy increase of 3.95 percent.
 
Homeowners who qualify for the residential property tax rate would receive a 24 percent exemption for FY2025, which equates to over $284,000 in assessed value. That’s a larger exemption than in FY2024, which provided a 15 percent exemption, or roughly $111,000 in assessed value. 
 
Taken in concert with an increase to the non-resident rate, the resulting tax bill for qualifying resident homeowners will remain predominantly flat, depending on their assessed values. 
 
The robust housing market, which has generated additional revenue for the City, is also seen as a cause for concern. With the average assessed value of a single-family home now topping $1,000,000 and housing inventory remaining
 
 
 
 
persistently low, the Administration remains concerned that the cost of housing may be driving out residents and preventing families from putting down roots.
 
Over the last 12 months, the Council and administration have taken steps to address some of the issues related to housing, including implementing zoning restrictions related to short-term rentals and establishing a two-tier residential tax rate.
  
Looking ahead, housing in Newport is expected to remain a topic that will encompass a wide range of issues; from the availability and condition of our housing stock, to the affordability, connectivity, and location of those units.
 
Also included in this year’s budget proposal is a streamlining of City operations through the reorganization of City Departments and the creation of a first of its kind Department of Resilience and Sustainability, which will be charged with developing long-term plans and solutions to ensure that Newport continues to thrive in the face of climate change.
 
Building further on that theme, the proposed budget incorporates a proposed $98.5 million bond referendum which would allow the City to make needed investments in infrastructure and resiliency improvements, including providing funding for the removal of soil related to the new Rogers High School construction project along with repairs to the Cliff Walk and Perrotti Park.
 
The entire proposed budget, along with a list of upcoming workshops, can be found online
at www.CityofNewport.com/Budget. Workshops are open to the public and additional departmental spending details are expected to be released in the coming weeks.
 
BUDGET WORKSHOP SCHEDULE 
Tuesday, April 23 at 5:30 pm               
Overview, General Fund Revenues, Capital Projects, New Positions, Police
 
Monday April 29 at 5:30 pm               
Fire, Maritime, Parking, Resilience & Sustainability
 
Tuesday, April 30 at 5:30 pm               
Public Services, Planning/Economic Development/Zoning, Inspections
                
Wednesday, May 1 at 5:30 pm               
School Budget (Joint Session with School Committee)
 
Thursday, May 2 at 8:30 am                
Utilities (Water & Water Pollution Control)