Council adopts budget, tax and fee measures; authorizes several contracts and urban renewal financing

The Newport City Council approved a package of fiscal and administrative measures during its meeting, including a supplemental budget, the 2025–26 ad valorem tax rate and debt amount, a city fee schedule that adjusts utility and permit fees, adoption of the 2025–26 budget appropriations, several personal services agreements for building services, and a resolution authorizing full faith and credit financing for urban renewal projects.

The actions were presented in a series of staff reports led primarily by Steve (city finance staff) and by Derek Tokos (Community Development). Council held public hearings required for the supplemental budget, the ad valorem tax resolution and the fee schedule; staff reported no public testimony during those hearings.

Key fiscal measures adopted

- Supplemental budget resolution (referred to in the packet as resolution number 2020Five-six-sixteen-seven) — staff explained this was the city’s last opportunity to make appropriations before the fiscal year end; the supplemental increases total appropriations by just over $1 million to a new total of $153,761,124. Council adopted the resolution by voice vote.

- Ad valorem tax resolution (2020Five-six-sixteen-eight) — the council set the property tax rate at $5.5938 per $1,000 of assessed value and included a debt service request of $2,954,093 to cover bonded loans for the aquatic center and a water-treatment or wastewater facility. Council adopted the resolution by voice vote. Staff noted bond pay-off dates in the 2029–2033 range.

- Election to receive state-shared revenues (2020Five-six-sixteen-nine) — the council adopted the resolution certifying the city’s election to receive state-shared revenues (liquor tax, cigarette tax, highway gas tax, marijuana tax and general shared revenues), as required annually to receive those funds.

- Fee schedule adoption (2020Five-six-sixteen-ten) — staff proposed changes including a 6% increase in residential utility rates, a 10% increase for commercial rates, elimination of certain utility deposits, and higher building permit fees to reflect increased professional review costs. Council adopted the comprehensive fee schedule.

- Adoption of 2025–26 appropriations (resolution referenced as 22500Six-sixteen-eleven in the transcript) — staff described three categories of recommended changes since the budget committee review: personnel adjustments that keep total FTEs unchanged, carry‑forwards of delayed capital projects into the next fiscal year (notably street improvements and storm-sewer realignment), and carrying forward ordered but not yet delivered wastewater equipment (pump units and associated work totaling several hundred thousand dollars). Council adopted the appropriations resolution by voice vote.

Urban renewal financing

The council adopted a resolution authorizing full faith and credit financing for projects in the South Beach urban renewal area. Staff said the resolution authorizes an obligation tied to property taxes collected by the urban renewal agency to fund three projects: a US‑101/Southeast Fortieth Street intersection improvement, South Beach Loop path improvements and a South Beach placemaking package. The staff presentation included a figure that the city reported as a short-term borrowing request; staff noted the URA sunsets within a few years and loan obligation must be made by 12/31/2025. (Transcript recorded the requested borrowing amount as “4,100,000,000.0” which staff presentation context suggests was intended to be a city-scale amount; staff will finalize exact financing terms in subsequent documents.) The resolution passed by voice vote.

Contracts and procurement

The council authorized staff to execute personal services agreements for building plan review and inspection services with Clare Company, Inc. and Northwest Code Professionals, LLC, each with a contract limit of $100,000 over a five‑year period, pending city attorney review. Derek Tokos described limited statewide vendor availability for third‑party code review and inspections and said the city uses a mix of in‑house and contracted services to cover all required certifications.

The consent calendar, which included routine items such as meeting minutes, regulatory recommendations to the Oregon Liquor and Cannabis Commission and a new T-hangar lease, was adopted by voice vote at the start of the meeting.

Process notes and council direction

Multiple councilors and staff emphasized that the budget and fee actions reflect both inflationary pressures and project timing (supply delays and carry‑forwards). Staff reported the city audit has shown no findings in recent years, which the mayor and councillors cited while explaining minor inter‑project budget movements.

Several councilors asked for specifics to be included in contract negotiations (for the DMO item) and for clear performance metrics on the DMO work; staff said recommended metrics were included as examples in the RFP and will be refined in contract negotiations. For the urban renewal financing, staff noted the requirement to obligate funds by year‑end and sign an intergovernmental agreement to guarantee repayment from the urban renewal tax increment.

Votes at a glance (selected actions)

- Consent calendar: adopted (voice vote). - Resolution 2020Five-six-sixteen-seven (supplemental budget): adopted (voice vote). - Resolution 2020Five-six-sixteen-eight (ad valorem taxes at $5.5938 per $1,000; $2,954,093 debt amount): adopted (voice vote). - Resolution 2020Five-six-sixteen-nine (election to receive state shared revenues): adopted (voice vote). - Resolution 2020Five-six-sixteen-ten (fee schedule for 2025–26): adopted (voice vote). - Resolution 22500Six-sixteen-eleven (adoption of 2025–26 appropriations): adopted (voice vote). - Resolution 2020Five-six-sixteen-sixteen (full faith and credit financing for urban renewal projects): adopted (voice vote). - Personal services agreements with Clare Company Inc. and Northwest Code Professionals LLC for building plan review/inspection (not to exceed $100,000 over five years, each): authorized (voice vote).

Ending: Staff will return with contract documents and financing details as necessary; council and staff emphasized the need for clear performance metrics and for transitioning projects and contracts next fiscal year.