Newport council debates bonding and conflicts of interest; votes to secure bonds at minimum market level

Newport — An extended public and council debate over municipal bonding and alleged conflicts of interest ended April 6 with two distinct outcomes: the council voted to obtain bonds for charter‑listed positions at the minimum amount a bonding company will write, and several council members filed disclosure statements and described formal recusal practices for votes involving organizations where they volunteer.

The discussion began during public comment when Jay Walsh asked that his ethics and bonding complaints be entered into the record and urged recusal by council members named in his filings. The matter returned later on the agenda as a formal complaint under the charter.

On bonding: Legal counsel and staff advised that the city’s crime‑insurance policy through the Vermont League of Cities and Towns (VLCT) provides broad coverage for employees and officials. Several council members and staff argued VLCT coverage is broader than traditional surety bonds because insurance covers all employees and provides subrogation rights similar to bonding. Opponents argued the city charter specifically uses the term "bond" and that bonds impose individual vetting and explicit third‑party guarantees.

After discussion — including residents who called for strict adherence to the charter and others who urged pragmatism to limit legal costs — the council adopted a pragmatic approach: it directed staff to obtain bond coverage for the charter‑listed positions (clerk/treasurer combined, tax collector, public works director/superintendent of streets and waterworks, and city manager if in place) at the "lowest amount the company will write." Councilors said the intention was to meet the charter's letter while limiting taxpayer expense.

On conflicts of interest: The complaint later alleging conflicts for Council President Carter Finnegan, Councilor John Manette and Mayor Rick Chase centered on volunteer roles with Newport Downtown Development (NDD). John Manette and Carter Finnegan told the council they serve as volunteers on NDD committees and do not receive direct personal benefit; both filed formal disclosure statements. Mayor Rick Chase — who said he is paid by NDD as its director — delivered a lengthy statement acknowledging his paid role, outlining how NDD is funded, and describing strict recusal plans: he said he will recuse from votes on any grant requests to NDD or contracts between NDD and the city and will ask that any NDD funding be handled as a separate article so voters/council can treat it independently.

"On any matter regarding potential grants to NDD or any other organization where I serve as ... a board member, I will ask that the council remove that item from the total budget and treat it separately as an independent article to be voted on," Mayor Chase said, adding that he will recuse himself from discussion and votes on those items. Council members also said they will file and hand the mayor and Carter's disclosure statements to the clerk for the record.

Why it matters: The actions aim to balance strict compliance with the charter’s language, protection of taxpayers and the practical need for volunteer participation in small‑town governance. Residents in the meeting were sharply divided — some urging strict recusal to avoid any future legal challenges that could undo council decisions; others argued that requiring routine volunteers to step away from discussions would deprive the city of experienced participants.

Next steps: The city clerk and legal counsel will pursue bond quotes at the minimum writeable level and report back with executable options. The mayor and councilors named in the conflict complaint filed disclosure forms and will recuse themselves from direct votes on grants or contracts involving Newport Downtown Development, per the statements recorded at the meeting.

Speakers quoted: Jay Walsh (public commenter), Mayor Rick Chase, John Manette (councilor), Carter Finnegan (council president).