Newport commissioners rejected the city’s roughly $58,000 Southbank Partners membership payment this week, citing concerns about transparency, oversight and unfinished projects.
The Newport City Commission voted 3-2 Monday against paying its annual dues to Southbank Partners at its Sept. 14 meeting. Commissioners Ken Rechtin, Mike Radwanski and Vice Mayor Julie Smith-Morrow voted no, while Mayor Tom Guidugli and Commissioner Aaron Sutherland supported the measure.
The three commissioners who opposed the payment said they still see value in Southbank and could reconsider their votes, but each said they want changes before committing additional taxpayer dollars.
“I think there needs to be more consideration of the members, and what are we paying for?” Smith-Morrow told LINK nky. “What are you doing for us? And help us understand how this organization is being run and what’s going on.”
The vote comes about six months after commissioners approved Southbank’s $58,250 membership contribution for the previous fiscal year. At the time, commissioners raised some of the concerns that resurfaced Monday and asked Southbank for additional information and follow-through before the next payment came before them.
Southbank Partners is a nonprofit regional organization approaching its 30th anniversary that works with Ludlow, Covington, Newport, Bellevue, Dayton, Fort Thomas, Silver Grove, Southgate and Wilder on economic development and infrastructure projects.
Newport was one of its founding members.
Southbank Partners’ project includes Riverfront Commons, an 11.5-mile walking and biking path along the Ohio River connecting Northern Kentucky river cities. Southbank also works on regional transportation corridors, downtown development, grant opportunities and other projects on behalf of its member cities. For Newport, current projects include additional phases of the Riverwalk, levee trails connecting to the new Fourth Street Bridge, overlooks, trailheads and Saratoga Plaza near the Purple People Bridge.
Southbank President and CEO Will Weber said Newport’s vote is unusual in the organization’s history.
“Over the almost 30 years of Southbank, we haven’t run into a situation like this,” Weber said.
Weber added that all partner cities have paid dues during his tenure, although some have fallen behind before working out a resolution with Southbank.
For Rechtin, the vote followed concerns he had previously raised about what he described as “mission creep” within the organization.
“The agency has crept, the mission has crept, and the number of folks within the partnership has crept too,” Rechtin said during the meeting.
In a follow-up interview, Rechtin said he wants more direct oversight from elected officials and detailed financial information, including Southbank’s budget, actual spending, balance sheet and a clearer explanation of how dues are calculated.
“What are each one of the cities paying?” Rechtin said. “Is there a formula that they’re using for the dues?”
Weber told LINK nky that Southbank historically used a formula based on factors including population and the percentage of riverfront within each city. Today, he said, the previous formula serves as a baseline, with contributions periodically adjusted based on services, investment and rising costs.
Weber did not provide LINK nky with a list of what each member city currently pays, although he noted that the amounts are public record and said Southbank generally discusses contributions individually with each city.
“I want to work with one city,” Weber said. “Here’s how much you’re paying, and I can tell them, you know, Newport, you’re paying 58 some odd thousand, and here’s what our total amount is from the membership contribution, so they can understand a percentage of the whole.”
Rechtin also said restructuring Southbank’s board to give elected officials from member cities a greater role could help address his concerns. He said he could reconsider his vote if he saw movement on financial transparency and governance.
Smith-Morrow similarly said the financial information available to commissioners was insufficient.
“We are members of Southbank Partners,” Smith-Morrow said. “Why is it secret what the dues structure is? Why is it secret what the financial reports are?”
During the meeting, Smith-Morrow said she had hoped Weber would bring financial reports with him. Weber told commissioners he had sent the organization’s 2024 and 2025 audits to the city a couple of hours before the meeting.
Radwanski’s concerns center both on transparency and whether Southbank is completing the work Newport expects from the organization.
Earlier this year, Radwanski said he asked Southbank to focus on a Newport project it could complete before the city’s next membership vote. Southbank identified Saratoga Plaza, an improvement planned near the entrance to the Purple People Bridge.
But Weber told commissioners Monday that the project is about 30 days behind in approvals and design and will carry into the spring.
“I just need to see that there’s follow through, and having a bunch of ribbon cuttings, that’s great,” Radwanski said. “But at the end of the day, I want the best deal for our constituents in Newport, and that best deal looks like completed work.”
Radwanski said seeing projects through to completion would be one of the biggest factors in whether he would reconsider his vote. He also questioned Southbank’s involvement in projects dependent on state funding if the organization is not spending time advocating for those projects in Frankfort.
“If you’re not going to go to Frankfort, please stop working on projects that involve state funding,” Radwanski said. “Just focus on projects that you can do with the city, or even with the parks.”
Weber defended Southbank’s value to Newport during the meeting, telling commissioners the organization has helped the city secure approximately $3.5 million in capital investment over the past two years and said Southbank expects to help secure another $500,000 over the next 18 months.
Guidugli said that return on investment was why he supported renewing the city’s contribution, though he acknowledged his fellow commissioners’ concerns.
“I think that you just struck, to me, what is the most important portion, is the return on investment,” Guidugli said. “The ROI is, without a doubt, the reason why I think this has an opportunity to pass. But their concerns need to be heard and responded to.”
Radwanski questioned the additional investment Weber said Southbank is pursuing for Newport.
“I’m not sure if that ($500,000) is even real or not,” Radwanski told LINK nky. “I’m just having a hard time believing it. I kind of feel like we’re getting bluffed.”
Weber said he does not expect Newport’s current projects to be affected by the vote and has already begun talking with city administration about what additional information commissioners want.
“I don’t see it as a vote against Southbank,” Weber said. “I see it as we need more information to ensure that we can continue the partnership.”
The city of Newport told LINK nky in a statement that, the city commission’s vote should “not be viewed as a reflection on Southbank or the value it provides to Newport and the communities it serves.”
“They have requested additional information from Southbank regarding how Newport’s membership contributions are being used,” Newport said in its statement. “Historically, the city has received significant value from its partnership with Southbank, and we anticipate Southbank will provide the information necessary to address the commission’s questions.”
For now, the three no votes leave the door open to reconsideration, but commissioners said Southbank must demonstrate changes first.
“I would hope in the future that this is an opportunity for them to really take a step back, evaluate their goals and objectives, do some listening, as well as be more transparent about the financials with our constituents,” Radwanski said.
