Newport This Week

Budget Reflects City’s Responsibilities and Resources





 

 

On June 24, the Newport City Council passed a $129 million budget for 2015-2016, which municipal leaders described as “the blueprint for the financial and policy decisions to be implemented during the fiscal year.”

In introductory remarks prepared prior to the vetting of the budget proposal throughout May and June, interim City Manager Joseph Nicholson described the plan’s practical, as well as aspirational, functions. “The budget is the single most important document we have for establishing control over the direction of change and determining the future,” he wrote. “It lays the groundwork for what we hope will be our community’s accomplishments in the future.”

Once approved, the budget became a legally binding document. It can only be amended by the City Council after proper notice and a public hearing. Transfers are allowed within departments upon the approval of the city manager.

The budget includes revenue and expenditure projections from several specialized accounts such as the water fund, but a significant slice of the larger budget picture is the approximately $88.9 million general fund. It is Newport’s primary operating account that establishes the financial plan for the day-to-day needs of the city. The tax rate that will support this year’s general expenditures is $10.73 per thousand for residences and $14.87 per thousand for commercial properties.

The general fund is organized into categories that reflect expenses and revenues. The largest sources of expenditures are the Newport schools ($24.3 million), the fire department ($18.2 million), the police department ($17.1 million) and public services ($10 million) (see complete breakdown on page 8). Public services covers a wide array of functions that are related to the maintenance of the physical infrastructure of the city, such as roads, sidewalks, parks, buildings, care of the vehicle fleet, and initiatives such as the Clean City Program.

Staffing levels across city departments will remain largely the same in the new fiscal year that began July 1, but a new position of Director of Communications was added to the city manager’s office. Once filled, the director will oversee all of the city’s external communications through all types of media; formulate and implement an ongoing communications and marketing plan; assume responsibility for the city’s website and microsite Engage Newport; and work with departments to disseminate information of interest. According to city officials, those duties are currently being performed by employees in other areas who may not have the appropriate training. “These systems need to be coordinated by one department and with a person that has formal training and experience,” Nicholson advised the council.

Additionally, in a nod to the shared services resolution passed by both the City Council and the School Committee in early June, a shared city/school Superintendent of Facilities Management position has been posted and will be supported at least initially through the Department of Public Services. The application period runs through Aug. 14.

Municipal budgets must be balanced according to state law, and incoming revenues must cover expenditures. The general fund expenses are primarily financed through real estate taxes (approximately $69.1 million), but also through other levies such as the meals and beverage tax ($1.9 million) and the hotel occupancy tax ($1.9 million). State and federal aid adds $3.5 million to the city’s coffers, and there are other smaller categories, such as public donations and property rentals, that contribute an additional $600,000 to the city’s needs.

A revealing piece of the revenue picture can be seen in the $9.6 million that comes in through charges for services. This category spans the gamut and counts monies to be received from over 50 sources, including licensing fees, police details, fire inspection, parking tickets, and beach rentals. Selected examples appear in the table below.


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