By Don Owen
NKyTribune reporter
The City of Newport accomplished a great deal in 2018, and the future also looks promising.
That’s what Newport City Manager Tom Fromme said Monday night during the State of the City presentation at the board of commissioners meeting. Fromme said during calendar year 2018, Newport ended with a General Fund Cash balance of $3,425,880, an increase of $400,000 from 2017.
Due to these numbers, the City was able to discontinue the short-term tax anticipation note (TAN) and establish a reserve fund. Newport Mayor Jerry Peluso said that was a crucial accomplishment.
“The big thing the people need to take away from the meeting tonight is the fact we paid off the TAN,” Peluso said, noting the cost of $2.5 million plus interest with the TAN. “That was a big bill to pay off, and this allows us to do other things. Because of that, it shows the amount of revenue we’ve been taking in with successful businesses.”
Fromme pointed out that during the last four years, Newport’s net payroll revenues have grown over $1,000,000. In 2018, the City gained a net 40 new companies doing business, with 124 net new employees.
“That is critical since we rely on payroll as our primary source of revenue, accounting for approximately 35 percent of all revenue,” Fromme said. “If you live in Newport, you have to be thrilled with everything that’s currently underway and what’s projected to be underway sometime in the near future.”
Fromme credited a “remarkable transformation” in Newport during the past 11 years to continuity.
“The success is due to the stable elected and staff leadership,” he said while giving the presentation. “If you don’t have consistency, all you do is spin your wheels. This board and staff are very goal-oriented and have done an outstanding job. There are many great things happening in Newport.”
Peluso agreed with that assessment. “If you look at some communities that have a revolving door, so to speak, with their elected officials and even appointed officials, you’re not going to have that needed experience and continuity,” he said. “I think experience means a great deal, especially here in Newport.”
While Fromme praised the board and staff, Peluso explained that someone else deserves a great deal of the credit.
“Tom Fromme is a home-grown product, he has pride in this city and it’s reflected by the great work he does,” Peluso said. “Some administrators or city managers, they live in a different community from where they work. Tom is all about improving Newport and makes our jobs easier.”
While Fromme said Newport’s future is promising, he also noted there are many challenges facing the City. “Increased costs related to personnel, specifically, crippling increases in pension costs dictated by the state, are expected to increase by $1.6 million over the next few years,” he pointed out in the presentation. “Due to the mandated pension increase and other rising costs, we are looking at ways to maintain an adequate level of service in the future within the constraints of our revenue.
“Perhaps the most difficult challenge for Newport and for surrounding cities is addressing the delivery of public services to our residents. We continue to operate with a very small efficient staff and make every effort to provide a high quality of service in a cost-effective manner.”
Other issues, including aging infrastructure and equipment, will also present challenges in 2019 and beyond. “During the next few years, we anticipate spending several million dollars on infrastructure-related projects and equipment acquisition, including upgrades to the 800 MHz radio system used for public safety,” Fromme said.
Newport’s continued economic development is the key.
“We’re still attracting more businesses, and that increases the bottom line to the General Fund,” Peluso said. “The fundamental of city government is to provide city services. If you don’t have that strong economy, streets aren’t clean, you don’t have police, you don’t have firefighters. You don’t have any of those things. As long as we can continue to provide quality city services, it’ll be a success.”
Another item from Monday’s meeting: representatives from St. Elizabeth Healthcare presented a $60,000 check to ReNewport to help finance an outdoor fitness center. ReNewport is a citizen-driven volunteer project that promotes improvements in the City of Newport.
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Congratulations to Newport for achievements in the region in 2018. A cool city with the most eclectic main street — Monmouth — in the region. Where else can you obtain all the services — obtain a Crocodile Dundee knife, eat in the original Dixie Chili, or see a shark in the aquarium? Totaly cool. And don’t forget lawnmower repairs, great meats at Eberts, shoe repair in the Newport Shopping center, bankiing services, and remnants of the gambling industry (see Mayor Peluso for that information).