Councilors Remain Concerned With Budget, Public Hearing Scheduled Tonight

Tonight Newport residents will have the opportunity to weigh in on the proposed 2013-14 budget at the Newport City Council meeting scheduled at 6:30 p.m. at Newport City Hall.

Although the current proposal includes a 3.87 percent residential and commercial tax increase, City Manager Jane Howington is currently exploring alternatives after some councilors said the increase was too high during a budget workshop held last week.  

“I think that we are driving people out of town,” said Kate Leonard. “I’m a realtor and I hear it.” 

Although Superintendent John Ambrogi said last week there could be a $745,000 shortfall in this year's school budget, on Tuesday he said the reported defect is only $88,000. Ambrogi said they can spread that cost over a two year period, without requesting additional funds from the city.

After Ambrogi brought up the potential $745,000 deficit, City Councilor Michael Farley said the superintendent violated state law because he failed to report the shortfall to City Council within the required five day time frame. In response, Farley made requests to the School Committee for supporting documentation under the Freedom of Information Act and the Rhode Island Access to Public Records Act.

Farley said overall he was disappointed in the material available, the lack of budget revisions made over the last twelve months and the lack of disclosure of under-budgeted items.

“How can we expect our students to complete their school assignments, when our administrators can’t complete their own obligations? It’s time for the administration to stop blaming their failures on the challenging demographics of our schoolkids, and start placing blame where it belongs, at the top,” said Farley.

In a 4-3 vote, the School Committee approved to suspend a policy to allocate one percent, or $364,000, to capital improvements.  Without this vote, the shortfall would had been a $452,000 deficit, said Ambrogi. School Committee Members Rebecca Bolan, Thomas Phelan and Robert Leary voted against the motion.

"I really strongly believe that we would jam up the district financially unless we take steps to defer any capital improvements,” said Ambrogi.

Although the School Committee has requested a $1.5 million increase, it was decided to put that decision on hold until August.  

Councilor Marco T. Camacho said to avoid compounding yearly tax increases, the city must find long term solutions such as shared services with the school districts, pension reform and alternative revenue sources with travel and tourism.

“Frankly, other councils really haven’t wanted to tackle this,” said Camacho. “Nobody is going to make a move. No police union, no teachers union, every special interest group is going to stick to their guns.” The tax burden falls on residents and businesses to pick up the deficit, which is quickly becoming unsustainable, he said.

“This town will cease to exist as a year-round community,” Camacho warned.  “We aren’t attracting anyone, we are repealing them away.”

One way he proposed the city could earn additional revenue is to add a dollar surcharge to Preservation Society tour tickets. That charge alone could help keep the tax increase to a minimum, said Camacho.  

Can’t make tonight’s meeting? Voice your opinion in the comment section below! Is the 3.87 percent increase acceptable?  How could the City of Newport increase revenue and save money to avoid future tax hikes?