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Newport staff split civic-support awards: Sears Trust grants kept to trust intent; other services moved to contracts
Summary
City staff proposed separating Sears Trust-funded civic support grants from contract-funded service payments, narrowing trust distributions to historic purposes and moving program-style support into purchase-of-service contracts and the general fund.
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Newport officials presented a proposal to tighten use of income from the historical Sears Trust and to shift some community programming from trust-funded grants to general-fund contract services.
City staff said they reviewed applications against the trust—s original purpose—helping the poor and beautifying the city—and proposed $163,000 in awards from the Public Improvement Fund (trust income). Applications with a weaker nexus to the trust would be supported instead through municipal contract services paid from the general fund. City staff also described an objective rubric and a scoring panel used to review applications.
Councilors pressed administration staff on taxpayer exposure and the effect on property tax bills. City staff said the proposed contract services awards total roughly $105,000 and estimated the tax impact would be "about a penny on less than a penny on the tax rate" and "for an average assessed home, you're probably looking in the $8 to $9 range".
Councilor Tsai and other councilors asked that the process be transparent and that the objective scoring rubric be published as part of future application materials. Peter (city staff) and the Deputy City Manager were identified as available to answer detailed questions about scoring and the civic-support schedules included in the packet.
Why it matters: The action narrows how a longstanding private trust fund—s income will be spent and preserves those trust revenues for purposes described in the trust while still allowing the city to fund community programs through contract services. That changes the legal and accounting path for several nonprofits that previously received civic-support grants.
What is not decided: Council did not take a formal vote during the workshop. Staff presented the proposal and asked for council direction and refinements to the scoring and contract approach.
Ending note: Staff said a clean draft of the full budget and the revised award schedules will be included in the materials circulated before the council's June 11 meeting.
