Newport RI City Hall Broadway

City of Newport expects $3.5 million revenue shortfall due to COVID pandemic

The City of Newport released its proposed FY2021 budget on Tuesday.  

The $96.4 million spending plan, which can be found on the City’s website, represents a roughly 3.5 percent reduction from the current fiscal year with the City anticipating over $3.5 million in lost revenue as a result of the COVID-19 outbreak. 

According to its most recent estimates, the City is projecting General Fund revenue for the upcoming fiscal year to total $96,424,097, with roughly $79.8 million coming from local property and motor vehicle taxes. By comparison, the current fiscal year’s adopted budget, which is due to expire on June 30th, totaled $99,981,982. 

The following are among the most significant changes to the proposed FY2021 budget:  

• $1,070,000 decrease in meals and beverage tax revenue
• $1,030,000 decrease in hotel occupancy tax revenue
• $460,000 decrease in Easton’s Beach parking revenue
• $489,807 decrease in parking ticket revenues
• $300,000 decrease in Special Detail revenue
• $238,000 decrease in Beach revenue
• $150,000 decrease in Parking Fund share revenue

The City Council is due to discuss the proposed budget during a remote meeting beginning at 6:30 p.m. on Wednesday, May 13th.