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Newport council renews NEMREC consulting contract after detailed finance review
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Summary
After a comprehensive financial presentation from consultant Chip Stearns, the Newport City Council voted to renew a one‑year contract with NEMREC at a discounted $110 hourly rate; councilors said the consultant’s work helped clarify the budget and audit preparation.
The Newport City Council voted unanimously April 20 to renew a one‑year consulting contract with NEMREC, the financial services firm that has assisted the city through budgeting, chart‑of‑accounts changes and audit preparation.
Mayor Rick Epper Chase said the council’s recommendation reflected an appreciation for the work done over the past year: “I think it’s the best $40,000 the city has spent in a very long time, and I mean that when I say it,” he said, referring to the roughly $40,375.50 billed to date for NEMREC services.
The contract keeps NEMREC’s discounted $110 hourly rate (the firm’s standard is $145) and continues the arrangement for on‑site and off‑site accounting support. Chip Stearns of NEMREC walked the council through interfund balances, reserves and notable liabilities during a 45‑minute presentation that highlighted the city’s current tax receivables, reserve accounts and pre‑audit fund positions.
Stearns told the council the city should expect a large influx of property tax payments around May 15 that will reduce current receivables. He also confirmed that, on a pre‑audit accrual basis, the city’s general fund is roughly $2.07 million to the good and that the water fund currently shows an approximate $294,000 deficit before final audit and depreciation entries.
Council members said retaining NEMREC was important while the city completes the audit and while a permanent city manager is still being recruited. Council President Carter Finnegan and other members noted the consultant has been attending task force meetings and providing continuity through the budgeting process.
Kate Stahlman, a community member, urged the council to keep the consultant in place, calling NEMREC’s work “transparent” and helpful for making the city’s accounting understandable.
The motion to approve a new contract was moved, seconded and carried by voice vote. Stearns will continue to provide consulting through the fiscal close and audit steps and remain available until the council and the city’s bank express confidence in the transition.
