As the 2021-2022 fiscal year wanes, another is set to begin for the City of Newport.
At Monday night’s Newport city commission meeting, Newport passed their annual budget for the 2022-2023 Fiscal Year . The Fiscal Year will begin on July 1, 2022 and go through June 30, 2023.
Newport Mayor Thomas Guidugli thanked the team of city employees who worked on the budget.
“I just want to take a moment, again, to thank everyone associated with this budget process,” Guidugli said. “The budget process has become a continuous process. It’s not a stop-and-start. It’s an ongoing adventure, and it’s going to continue forever.”
City Manager Tom Fromme explained at the meeting that Newport was still recovering from the effects of the COVID-19 pandemic.
He noted that in cities such as Fort Thomas which are bedroom communities, cities where people live but primarily don’t work, property taxes account for a larger portion of the budget as compared to Newport, a city which is commercialized and relies more on payroll taxes and occupational licensing fees.
“I’ve always told the board members we really don’t have much discretionary funds that we use and we can spend on things,” Fromme said. “In other words, we really don’t live large for lack of a better term. So we live within our means.”
Newport has released a Budget Book on its official social media accounts. The document can be viewed by clicking here.
General Fund
The General Fund is Newport’s main operating fund. It pays for city services such as police and fire protection, administration and street maintenance.
Both revenue and expenses for the 2022-23 budget have increased from the 2021-22 fiscal year budget.
The 2022-2023 budget expects $25,275,590 in revenue. Licenses and permits are the largest source of general fund revenue at $16,161,100. License & permits includes payroll tax revenue, which Fromme said accounts for approximately 35 percent of Newport’s revenue. Property taxes are the budget’s second largest source of revenue at $3,428,400.
In a letter sent to Guidugli and commissioners, the largest payroll taxpayers in Newport come from PL Marketing, Kroger, Divisions Inc., St. Elizabeth, I-Wireless and various governmental entities.
Fromme noted property taxes account for approximately 14 percent of the General Fund revenue, with Riverfront Place, River Chase Properties and Newport Plaza the three largest property taxpayers.
The 2022-2023 budget expects $24,985,910 in expenses. Public safety spending is the largest budgetary expense at $14,007,780. The second largest budgetary expense is general government spending at $3,776,950.
Fromme spoke on the importance of Newport issuing debt to fund major municipal improvements.
“The issuance of debt is critical for us because we can’t possibly carry a balance where we could do a major project with cash payments,” Fromme said. “It’s just not feasible with the amount of revenue that we bring in, so bonding is going away to fund major municipal improvements.”
City Manager’s Office budget
The City Manager’s Office budget has increased from the 2021-2022 Fiscal Year budget.
This year the office will have $2,642,330 budgeted to it, up from $2,167,750 last year.
The Office will add four full-time positions, and three part-time positions.
Finance Department budget
The Finance Department’s budget has increased from the 2021-2022 Fiscal Year budget.
This year the Finance Department will have $1,164,320 budgeted to it, up from $1,035,380 last year.
Police Department budget
The Police Department’s budget has increased from the 2021-2022 Fiscal Year budget.
This year the Police Department will have $7,177,780 budgeted to it, up from $6,795,600 last year.
The Police Department will cut two part-time positions.
Fire Department budget
The Fire Department’s budget has increased from the 2021-2022 Fiscal Year budget.
This year the Fire Department will have $6,830,000 budgeted to it, up from $6,372,110 last year.
The Fire Department is adding one full-position.
Code Enforcement budget
Newport’s Code Enforcement budget has substantially decreased from the 2021-2022 Fiscal Year budget.
This year Code Enforcement will have $734,980 budgeted to it, down from $956,630 last year.
Code Enforcement will cut two full-time positions.
Community Services Department budget
The Community Service Department’s budget has decreased from the 2021-2022 Fiscal Year budget.
This year Community Service Department will have $2,706,720 budgeted to it, down from $2,866,020 last year.
The Community Service Department will cut one part-time, and one full-time position.
“We would love to have dollars to put in parks at a much higher level and a higher rate. We’d love to pave every street in the city,” Guidugli said. “Then there is affordability, and balancing, and trying to work through all the budgetary issues, and continuously writing for those grants to get that money to be able to achieve those things. That’s an effort that this team of administrators works on every day.”
