Newport holds public hearing on 2025 property tax rate; commission votes to proceed with first readings of tax and budget ordinances

Mayor Thomas L. Cadulli opened a special meeting of the Newport Board of Commissioners on Sept. 8, 2024, calling a public hearing on the city's property tax rate for tax year 2025.

"Again, this is a public hearing. The property tax rate public hearing of 2025," Cadulli said before staff presentation began. Finance staffer Lenny walked the commission through the certified tax roll, exemptions and proposed rate options, and framed the proposed rate as a small rise from the compensating rate.

The city received certified assessment data from the local Property Valuation Administrator (PVA) and public-service (PSC) assessment data the staff uses to compute its tax-rate options, Lenny said. He reported roughly $3.3 billion in assessed real estate, with about $1.4 billion taxable after exemptions and moratoriums, and roughly $102 million in taxable tangible personal property. Lenny said the city's compensating property tax rate for 2025 would be 2.15 per $1,000 of assessed value and that staff's proposed rate for consideration that night was $2.24 per $1,000 ("comp plus 4"). "So the proposed rate for tonight is the $2.24, the comp plus 4," Lenny said.

Lenny showed examples of taxpayer impact at that rate: a $150,000 home would see an annual increase of about $13.50 and a $250,000 home about $22.50, and noted the taxable base is affected by exemptions and moratoriums (69 parcels in the moratorium program this year). He also noted estimated PILOT (payment in lieu of taxes) receipts for fiscal 2026 of almost $900,000 and said those PILOTs represent roughly $402 million in tax-exempt property value receiving compensation to the city.

After the presentation the mayor opened the hearing for public comment. "Going once, going twice, the public hearing is closed," Cadulli said; no members of the public addressed the board.

The commission then moved to first readings of two ordinances tied to the property-tax process. Commissioner Radovanski moved and another commissioner seconded the first reading of Commissioner's Ordinance No. 13, "levying and assessing ad valorem taxes for city purposes for the fiscal year 2025 through 2026." The commission approved the first reading on a unanimous roll call vote (Radovanski, Vice Mayor Smith Morrow, Commissioner Rekton, Commissioner Sutherland and Mayor Cadulli voting yes).

The board then considered Commissioner's Ordinance No. 14, an amendment to the adopted 2025–26 general fund budget to reflect CBD grant funding tied to a recently awarded grant (the amendment increases both revenue and the community development expense by $994,000 as a pass-through). City Manager John Hayden and Lenny explained the budget amendment is required by the grant; Commissioners who had met previously with program staff said they were comfortable moving forward. The board approved the first reading of Ordinance No. 14 by unanimous roll call vote.

The meeting also included brief, separate votes on administrative orders: Commissioner's Order No. 59 authorized the mayor to execute an agreement with the Kentucky Transportation Cabinet related to the Kentucky Route 8 bridge replacement project and establishes the city as applicant to the U.S. Army Corps of Engineers for permitting; the agreement is structured as a pass-through with KYTC reimbursing the city for Corps fees. The commission approved the order unanimously.

Commissioner's Order No. 61 authorized the city manager to execute a contract with the successful bidder, Regular Blacktop, for a long-awaited milling-and-paving project in a municipal parking lot. Public works staff described the lot pavement as original to the building and approaching the end of its useful life; the project includes full-depth repairs, mill-and-overlay paving, and some landscaping and tree replacement. The commission approved that contract authorization unanimously.

The meeting concluded with a unanimous motion to adjourn after the votes.

Why it matters: The first readings and the public hearing mark the start of the formal budget and rate-adoption process; the commission's advertised rate constrains final action for the fiscal year. The budget amendment for the CBD grant formalizes a grant pass-through the city must show in its adopted budget. The bridge-permitting agreement and the parking-lot contract are administrative steps to allow state-led construction and to maintain city facilities.

Votes at a glance

- Commissioner's Ordinance No. 13 (first reading): levy/ad valorem taxes for fiscal 2025'26; motion moved and seconded; roll-call vote unanimous (Radovanski, Vice Mayor Smith Morrow, Rekton, Sutherland, Mayor Cadulli) — outcome: first reading approved.

- Commissioner's Ordinance No. 14 (first reading): amend 2025'26 general fund budget to incorporate CBD grant (pass-through, $994,000 increase to revenue and matching expense); motion moved and seconded; roll-call vote unanimous — outcome: first reading approved.

- Commissioner's Order No. 59: authorize mayor to execute agreement with Kentucky Transportation Cabinet for Kentucky Route 8 bridge replacement project and to act as applicant to U.S. Army Corps of Engineers for permitting (KYTC to reimburse city fees); motion moved and seconded; roll-call vote unanimous — outcome: approved.

- Commissioner's Order No. 61: accept bid and authorize city manager to execute contract with Regular Blacktop for municipal parking lot milling/paving and related repairs; motion moved and seconded; roll-call vote unanimous — outcome: approved.

Speakers and sources referenced in this report

- Mayor Thomas L. Cadulli, Mayor, City of Newport (government) - Lenny, Finance staff, City of Newport (government) - John Hayden, City Manager, City of Newport (government) - Tiffany (city clerk), City clerk/meeting clerk, City of Newport (government) - Vice Mayor Smith Morrow, Vice Mayor/Commissioner, City of Newport (government) - Commissioner Radovanski, Commissioner, City of Newport (government) - Commissioner Rekton, Commissioner, City of Newport (government) - Commissioner Sutherland, Commissioner, City of Newport (government) - Brian, Public works/staff member (government)

Sources: City of Newport certified tax roll materials (PVA and PSC data) referenced by staff; presentation slides and staff comments during the Sept. 8, 2024 special meeting.

Ending note: The votes reported here represent first readings and administrative orders; final adoption of the tax rate and budget amendments will follow statutory notice and any additional required readings or public hearings.