City administrator says controller froze downtown grant reimbursements; proposes personnel-policy change

City Administrator James Finchum told the Newport City Council that the county controller has frozen reimbursements under a recently approved downtown grant program after a complaint and an ensuing review by the controller’s office.

Finchum said the program — designed to reimburse property owners for work on condemned buildings through the city’s grant process — was put on hold while the controller reviews its legality and documentation. “They came back wanting more information,” Finchum said, adding that staff had already provided attorney-reviewed materials. He said property owners who completed work are awaiting reimbursement and have grown “aggravated” because payments are delayed.

Finchum also corrected an earlier public statement about a 15% sales-tax penalty, saying the penalty applies only when there are two consecutive late audits that remain outstanding. “I stand corrected,” he said, and apologized for the earlier inaccuracy.

On personnel matters, Finchum described an incident in which an employee was suspended after refusing a resident’s request for identification. Finchum said the discipline was based on failure to identify, not on a separate encounter involving the resident’s dog. He said he will place an amendment on the April agenda to add an explicit personnel-policy requirement that employees provide their name when a citizen asks. “If you’re asked your name, you must provide it,” he told the council.

Why it matters: the controller’s freeze affects local property owners who expected reimbursement under a council-approved program and could delay downtown building remediation. The proposed personnel-policy change would formalize identification requirements for city employees.

The council did not take further action at the meeting; Finchum said staff will continue to communicate with the controller’s office and that paperwork and outside- attorney review had been completed.