Council adopts budget with 3.48% levy; restores school increase and approves a mix of contracts and personnel

The Newport City Council voted Wednesday to adopt an amended fiscal 2026 spending plan that raises the property tax levy 3.48 percent and includes several contract awards, parking-code changes and a mix of personnel additions funded from a combination of enterprise and general fund sources.

Council supporters said the package balances immediate operating needs with near-term revenue changes from the state; opponents said the levy increase remained too high. The council approved restoring the school department's requested 4 percent funding increase after two weeks of debate about regionalization, staffing and whether to spend $250,000 on a regionalization study.

The council's votes combined routine licensing and permits with higher-profile procurement and personnel decisions. On procurement, the council approved a consultant contract amendment for renovations at the Florence Grama Center and awarded a digital parking-permit and license-plate-reader contract to Passport Labs Inc. Councilors also approved several modest parking-code amendments after an administrative committee recommendation.

Why it matters: The levy adoption sets tax rates for owner-occupied and other property classes and funds schools, public safety and public works for the coming year. Restoring 4 percent to the schools reversed a prior cut and drew sustained public comment from teachers, parents and school officials concerned about counselors, psychologists and classroom staff.

Key facts and actions - Property tax levy and rate: The adopted levy increase is 3.48 percent. The council recorded owner-occupied residential rate at $7.25 (per $1,000 of assessed value), non-owner-occupied residential at $8.821, commercial at $10.0875 and tangible property at $14.88. The council noted the percentage is below the statutory maximum discussed earlier in the process (the maximum cited in discussion was about 3.95 percent). The council approved the omnibus property-tax resolution and the resolution ordering levy and collection dates.

- School funding: The council restored the school department's request from 2 percent back to 4 percent in a 6-1 recorded vote. School officials and public commenters said the district faced an approximate $1 million shortfall and urged funding to avoid further staff cuts; the superintendent testified the district was confronting nearly $2 million in combined gaps when state aid and other reductions are included.

- Regionalization study: Councilors debated a $250,000 regionalization study line item. A motion to move that $250,000 to the school operating allocation was put on the floor and recorded as denied (council recorded the result as 4-3 against that particular reallocation). The council subsequently voted to keep other budget amendments in place and to proceed with the adopted appropriation ordinance as amended.

- Personnel votes: The council approved a mix of positions funded from general and enterprise funds. Highlights recorded on the floor include: - Reinstated Deputy Harbor Master (funded from harbor/harbor-related funds): motion passed (recorded 7-0). - Superintendent of Parking Authority (proposed funded from parking enterprise): motion for that position failed on a recorded 4-3 vote. - Utilities GIS & Field Specialist (enterprise): a motion to add the position failed on a 4-3 recorded vote. - Utility Capital Project Engineering Manager (enterprise): the council approved the position (recorded vote referenced as 4-3 in discussion of final tallying of positions). - Deputy Police Chief (to be funded in part from parking enterprise per an amendment): council approved the position; an amendment to offset the position from parking revenues carried and the underlying position vote passed. - Assistant Building Inspector and Code Enforcement Officer: the council approved the assistant building inspector (funded by permit fees) and debated a code-enforcement officer; the code-enforcement position vote outcome recorded as a negative/close vote (opposed by multiple members) and direction was given to consider fee offsets and state revenue before final funding.

- Contracts and budgets: - Brewster Thornton Group Architects: Council approved Amendment No. 1 ($33,900) and Amendment No. 2 ($12,760) for additional design services on the Florence Grama Center renovation; the total amendments equal $46,660 and council said the amount will be covered through the State of Rhode Island Pandemic Recovery Office grant project budget (the report on the agenda referenced a project budget of $7,500,000). - Passport Labs Inc.: Council approved awarding a digital parking-permit and license-plate-reader contract (RFP referenced as "2025POL-two"). The implementation hardware and software price was $63,344.41, annual recurring costs were cited at $20,869.16 and an optional extended warranty package was $9,928.38 (first-year warranty was included). Council said recurring costs will be supported by parking funds and implementation timelines indicated some elements (digital permits) will be used beginning next parking season; license-plate-reader enforcement will start as soon as technology is operational per the chief of police.

- Parking and traffic rule changes: The council acted on several traffic/parking ordinance amendments proposed by the ITC (traffic committee), including changes to Chapter 10.24 (parking prohibited at all times in designated places) and modifications to residential parking designations (examples cited in debate included adding Spring Street east side and modifications to Papa Street and Kilburn Court). An amendment to a staff-recommended text (changing a directional word from "north" to "south") was approved by voice vote during the meeting.

- Easton Beach reserve resolution: The council amended and approved a resolution that directs beach parking-related dollars above the annual budget line item into a restricted reserve for future beach facilities, grounds and maintenance. The adopted amendment directs "each dollar more than the annual budget line item, Newport Beach parking," into a restricted financial reserve account for beach purposes.

Procedural notes and next steps: The council repeatedly noted that some of the personnel items were dependent on enterprise fund revenues and that state revenues still pending signature by the governor could affect next-year budgeting. Councilors asked staff for follow-up detail on which positions could be partially offset by enterprise revenues (parking, harbor, water/sewer) and asked for clearer line-item revenue sensitivity before making further staffing or rate decisions.

Ending: Councilors scheduled follow-up work sessions on the North End realignment commission report and asked staff to prepare more detailed cost-offset analyses for the positions the council debated. The council adjourned after completing the second-reading votes on the appropriation and personnel ordinances and setting levy and collection dates.