My wife and I are also considering this move. We live across the river in a Cincinnati suburb now, but visit Newport often for recreation. It's a river town that has undergone an amazing transition.
Labor day fireworks are amazing, but it's kind of nutty with so many people.
I'm checking into the costs: There is a 2.5% payroll tax for those working in the city, a moderate occupational tax if you have a business, and of course property taxes. Duke Energy is a great help giving you a "even-billing" utility cost for wherever you're moving.
The folks at the city finance department have been very helpful with kin of stuff. They're at
:: City of Newport, Kentucky ::
Be glad to exchange information if you want.