By Don Owen
NKyTribune reporter
The City of Newport is celebrating its 225th birthday during one of the most productive periods in its history. Newport is also confronted with serious challenges, according to City Manager Tom Fromme.
Tom Fromme
During his State of the City address on Monday night at the Newport Board of Commissioners meeting, Fromme pointed out the many successes enjoyed by Newport in recent years. But there’s also concern with rising costs, especially in the area of pensions.
“Increased costs related to personnel, specifically, crippling increases of over $1.6 million in pension costs dictated by the state pension system are expected over the next few years,” Fromme noted in his address. “Due to these increases and other rising costs, we are continually examining 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 surrounding cities is addressing the delivery of public services to our residents. We continue to operate with a very small but efficient staff and make every effort to provide a high quality of service in a cost-effective manner.
Tom Guidugli
Fromme reported that Newport has “reduced City staffing by nearly 30 employees in recent years. Currently we have approximately 114 full-time employees, with more than 80 in public safety.”
Newport City Commissioner Tom Guidugli agreed with Fromme’s assessment regarding the pension issue.
“The pension problem is real,” Guidugli said. “I think it’s finally getting the time and attention needed for residents to become better informed. In Newport, our pension liability is going to affect our budget year-over-year. It directly aligns with the services we’re going to be able to provide to our residents, now and into the future.”
“It’s not contrived,” Guidugli added. “It’s a genuine problem. The question is, how deep is the problem?”
The economic development in Newport continued to trend upward in 2019 with many noteworthy achievements. Among the successes were:
Renderings of the first phase of the Ovation Project (top) and the re-envisioned Newport on the Levee (click to enlarge). The projects are among the highlights of a successful year in the City of Newport
•Corporex broke ground on the first phase of the Ovation project.
•The Route 9 project is nearing completion of its final phase, opening up a new growth corridor for Newport.
•The former K-Mart site was redeveloped and is currently home to ALDI grocery store as well as Burlington and Ross Department stores.
•Newport on the Levee, under new ownership, has also commenced a $100 million renovation.
•The former Baptist home site is also undergoing redevelopment as a 45-unit condominium complex, repurposing the old building.
Those are just some of success stories currently being written in Newport.
Fromme noted that Newport has continued working on securing and stabilizing its finances. For the calendar year 2019, Newport ended with a General Fund Cash Balance of $4,754,873, up $1,300,000 from 2018.
“We have established critical reserve funds for the general fund, compensated absences and legacy pension obligations,” Fromme said. “Our 2018-2019 budget reflected success with revenues surpassing budgeted projections.
Newport Mayor Jerry Peluso (seated, center) with the Board of Commissioners and senior staff members (provided photo).
“Over the last five years, the City’s net payroll revenues have increased nearly $1,200,000. In 2019 the City gained a net 70 new companies doing business in the City, with 194 net new employees. Business growth continues in the City, which is critical since we rely on payroll as our primary source of revenue, accounting for approximately 35 percent of all revenue.”
Fromme also pointed out that “Our largest or fastest-growing businesses are PL Marketing, Kroger, Defender Direct, Divisions, Inc., Impact Sales, St. Elizabeth, DJ Joseph Co., National Band and Tag Co. Inc., I-Wireless, CompMed and Nexigen.”
The Newport Board of Commissioners will convene for a caucus meeting on March 9 at 7 p.m.
Contact the Northern Kentucky Tribune at news@nkytrib.com
