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NEWPORT — Next year, the City of Newport may have a smaller budget.
A preliminary version of the 2026 budget, released ahead of the Newport City Council’s budget hearing next week, is $15 million — a $162,433 decrease from the 2025 budget. This decrease is due to changes in loan and grant amounts as the city completes and starts new projects, according to the preliminary budget.
The Newport City Council must pass the 2026 budget before the end of this year.
Newport is applying a 3% cost-of-living adjustment, or COLA, to three items.
As previously reported by The Miner, water and sewer rates are increasing by not just COLA, but an additional $5 and $3 for repayment of two loans: a Washington State Department of Ecology loan for wastewater improvements, and a 2004 U.S. Department of Agriculture sewer bond. In total, water and sewer rates will increase from $132 to $145 a month.
Also budgeted are COLA for the city’s lease on Newport City Hall and for all city employees, which include one part-time janitor and 18 full-time workers between parks and recreation, the wastewater treatment plant, water, streets and city administration. The COLA for the lease is to keep up with inflation, according to the preliminary budget.
City employees are also receiving an increase of $2,685 to their monthly benefit cap, an effort on Newport’s part to retain new hires with families. Next year’s cap can cover medical for a family of three, according to the preliminary budget.
Simultaneously, Newport is granting some budget requests from city departments for next year.
The Newport Police Department is receiving $10,000 to purchase a Flock Safety camera system, which involves the installation of license plate readers in the city. A contract with Flock Safety costs about $9,000 annually, and Newport’s contract will have a three-year lifespan. That will fund at least two cameras, one for each of Newport’s main entry points.
A total of $170,000 is allocated for sewer, with $10,000 and $35,000 for lift station and sewer system maintenance, $40,000 for a used biosolids trailer and $85,000 for a used service truck with a crane. Another $50,000 is for water well maintenance.
The remaining $15,000 in capital expenditures will fund half of the addition of a fence around the RV Park. City clerk-treasurer Nickole North said she may budget for the other half in the following year.
While the city is not changing how it allocates sales tax revenue — 60% to current expense, 40% to streets — it is changing how it allocates property tax revenue. This year, property tax revenue was split 69-31 between current expense and streets, though the city had always split it 7030.
City reserves are receiving $117,000. Of that, $30,000 is for current expense, two-thirds of which is revenue from the cell tower; $10,000 for streets; $51,000 for water; and $78,000 for sewer. Most of the reserves for water and sewer are going toward water and sewer connections.
By splitting between current expense, streets, water and sewer, the city expects to pay its lease for a backhoe and loader in full by November 2026.
The Newport City Council is holding its budget hearing Monday, Dec. 1 during a 6 p.m. meeting at Newport City Hall.
