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Newport officials outline FY2025–26 budget timeline, warn of flood-related uncertainty and audit delay
Summary
City administrator James Stincham distributed the FY2025–26 budget and said the city aims for readings in May and June but faces fiscal uncertainty from flood expenses and an incomplete audit tied to the grammar school's records; staff also said health-insurance premiums will not increase this year after successful negotiation.
City administrator James Stincham told the Newport City Council that the proposed FY2025–26 budget packet was distributed to council members and staff hope to hold a first reading in May and a second reading in June so the budget can take effect July 1.
Stincham said flood-related costs have raised “a lot of question marks” about the coming year because the city does not yet know how much it will recover from FEMA or TEMA. He said staff have tried to keep line items close to the current year but that utilities and other costs are expected to rise.
He credited staff member Cindy Moyers for negotiating with the insurance provider so the city will have “no increase in our health insurance” this year, a departure from the typical 10% premium rise staff had been expecting.
Council also heard that the city’s audit is delayed because the grammar school’s budget amendments did not match the comptroller’s records. The comptroller’s office expects corrected records before closing the audit; Stincham said the city will likely request an extension from the comptroller and urged the school to resolve the discrepancies.
Officials repeated that FEMA and other disaster-recovery reimbursements remain uncertain. "We have no clue on what we're gonna be getting back from FEMA or TEMA," Stincham said, and staff warned it could be months or years before reimbursement decisions are final.
The proposed budget will return to council for formal readings in coming meetings.
