Newport's Next Budget Calls for 2.81 Percent Residential Tax Increase

NEWPORT, RI—Next year's proposed budget calls for a residential tax rate increase of 2.81 percent, to $10.97 per $1,000 of assessed value, according to a report from the city's Finance Department.

The Newport City Council is poised schedule a public hearing on the proposed budget, which was outlined last year in the first year of the city's biennial budget process.

Now, in year two, the council must OK changes to the fiscal 2017 budget document to set the tax rate in stone along with approving changes proposed by the city's finance director. The council can also make their own amendments before a final vote.

According to a City Council memo from Director of Finance Laura Sitrin, the fiscal 2017 budget's line items remain mostly unchanged since first drafted during last year's budget process. Some of what did change was notable, including a reduction in the city's assumed rate of return on investments in the pension trust funds from 7.5 to 7.25 percent, an increase in personnel costs after new labor contracts were ratified, changes in state aid, funding for a new infrastructure fund and others.

The city expects to collect $810,631 more in local taxes, including $300,000 more than projected in hotel occupancy taxes and $260,631 in real estate taxes. That helps make up the $109,668 less expected from state and federal aid and $887,373 in additional operating expenditures.

If approved as proposed, the city's total general fund would stand at $91.66 million, of which $72.89 million is raised by the tax and motor vehicle levy.

The proposed tax rate on commercial properties would increase by 2.84 percent from $14.79 to $15.21 per $1,000 of assessed value.

The budget memo and document: