Financial Reporting & Transparency

2024 Auditor's Report

The City of Newport is committed to full financial transparency. Every year, the City engages an outside auditing firm to audit all of its operations and services. For the latest audit report, SAS114 document, and Auditor's Presentation Click Here

OPENGOV Subscription

To further demonstrate our commitment to financial transparency, the City of Newport subscribes to OPENGOV to list all financial data.

OpenNewport provides complete access to the financial data for the City of Newport, Kentucky.
Newport's Fiscal and Budget Transparency Tool allows you to access full financial data on easy-to-understand charts and graphs, in just a few clicks.

Financial Reports

The Annual Report displays revenues and expenses by Fiscal Year for all City Funds. The Saved Views to the left allow you to easily find most frequently used reports, including breakouts of revenues and expenses as well as the current yearly budget.
The Monthly Report displays revenues and expenses by Fiscal Year for all City Funds. Click on any of the Saved Views to see answers to your most frequently asked questions, including monthly and year to date information.
The Balance Sheet Report displays the City's assets, liabilities and equity following each Fiscal Years' Audit.

Citizen Tips

Click through the Citizen User Guide (PDF) download to familiarize yourself with navigation of the site, or follow these helpful tips.

Use the various Filters on the left panel to build the view you want and understand the data in different ways.
The Show drop-down allows you to see the data that is of most interest to you.
The Broken Down By drop-down allows you to specify the category you would like the data to be organized by in your view.
Use the Filtered By option to view the data filters. These filters allow you to select exactly which data you want to include and exclude in your graph.
Use the Search function within each filter to find something specific.
The Fiscal Year slide bar allows you to view the range of years that you want to see from 2014 to 2017.
There are five different types of visual graphs you can view: Stacked percentage graph, Stacked line graph, Line graph, Pie chart and Bar chart.

FAQs

What is the City Budget?

Every year the City Commission adopts a Budget for the next fiscal year (the City's fiscal year runs from July 1 of one year through June 30 of the next year). The Budget is the City's business and financial plan for the year.

The Budget has two purposes. The purposes are (1) to set goals, objectives, and service levels for the City to meet during the next year, insuring the provision of City services to Newport residents, and (2) to estimate and allocate the money the City will take in and spend during the year.

How does the City balance revenues and expenses?

Revenue can fluctuate substantially within a given year or from year to year. There are very few sources of income over which the City has direct control. For example, the City has no control over property tax revenue; it can fluctuate depending on the number of homes sold in the community and the amount of building activity. The level of building activity also impacts other sources of revenue such as building permit fees. The City's largest amount of tax revenue is generated from the payroll at local businesses. These are revenues that have a somewhat direct relationship with the general state of our economy, or, in the case of occupational fees, the number of good paying jobs available in the community.

The City has a little more certainty and control over how much money is spent, but even that has some impacts and restrictions that reduce flexibility. The federal government and state government dictates additional expenses, such as Medicare contributions and required methods of compensating for overtime mandated by federal law. In addition, the City does not, in most cases, have the ability to stop doing things simply because it lacks the income. Police and fire protection are good examples. Even if revenue decreases substantially, the City still needs to staff fire stations and provide a minimum level of police patrol services.

It is important to remember that the numbers in the budget are estimates. Many things happen during the year that impact our income and spending. Revenues are estimated realistically to insure that there are adequate funds to meet needs. The City works to maintain adequate reserves to protect from future unknowns.

What are "funds"?

The City's Budget is financed by the use of different "funds." A fund can be thought of as a separate bank account used for specific purposes. These funds can be views independently through the OpenGov site.

The General Fund is the City's main operating fund used to pay for traditional City services such as police and fire protection, administration, and street maintenance. These activities utilize most tax dollars, such as property tax and occupational/ gross receipt fees, but are also supported by licenses and permits, user fees, and investment earnings. Some activities in the General Fund, such as building inspection or photo copying, are intended to be substantially self-supporting through fees for services provided and charged to individuals or businesses.

Another major group of City funds are called Enterprise Funds, used to account for specific services funded directly by fees and charges to users. In Newport, these funds are represented by the refuse and Newport on the Levee (garage) funds. The intent is that the funds be completely self- supporting and not be subsidized by general revenue or taxes. These funds are accounted for as if each activity were a separate, independent non-profit business of the City.

The City also maintains a Capital Projects Fund used to fund capital improvements. A capital improvement is usually a large construction project such as reconstruction of a roadway, the development of parkland, or the construction of a building.

Finally, the City maintains Debt Service, Special Revenue, Internal Service and Fiduciary Funds.

Debt Service Funds are used to pay the principal and interest payments associated with retiring bonds issued by the City.
Special Revenue Funds set aside special revenue, i.e., the Community Development Block Grant (CDBG) federal revenue, which is restricted in its use.
Internal Service Funds, such as the City Employee Benefits Fund, capture revenue received from user departments and user charges.
Fiduciary Funds include the legacy pension funds for employees, fire and police.

What is Fund Accounting?

City accounts are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Governmental fund financial statements are reported using the current financial resources measurement focus and modified accrual basis of accounting,

Fund accounting segregates funds according to the intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions.

The City maintains a minimum number of funds consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of governmental funds not recorded directly in those funds. Major funds are designated; all funds are described.

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