Budget overview highlights Newport Water sewer charge adjustments amid revenue challenges

Newport City Council's recent budget workshop highlighted critical discussions surrounding utility charges, particularly focusing on sewer use fees and stormwater management. With limited flexibility in the budget due to existing contracts and reserve fund usage, officials emphasized the need for strategic adjustments to maintain financial stability.

The council identified three key areas for potential changes, with the sewer use charge being the most significant. Newport Water, the largest customer, contributes approximately $820,000, making any increase in sewer fees impactful across the board. Officials noted that adjustments to these charges would directly affect water rates, as they are interconnected in billing.

In addressing the Combined Sewer Overflow (CSO) fixed fee, the council aimed to balance inflation corrections with the need to cover stormwater management costs. This interim measure is seen as essential until a more comprehensive rate structure can be developed, which would separate residential and commercial components.

The discussion also touched on the previous year's budget rollback, which reverted rates to 2019 levels, complicating the current financial landscape. Council members acknowledged the necessity of these adjustments to ensure equitable cost distribution among customers, particularly as they work towards a more detailed model for future utility rates.

As Newport navigates these financial challenges, the council's decisions will play a crucial role in shaping the city's utility landscape and ensuring sustainable management of its water resources.