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Newport council hears detailed briefing on utility rate study and possible stormwater utility
Summary
City staff and consultants told the Newport City Council that a forthcoming utilities rate study recommends creating a stormwater utility to make charges fairer; councilors pressed officials on timing, communication and impacts for seasonal residents.
Newport city staff and consultants briefed the City Council on an in-progress utilities rate study on Oct. 8, outlining a likely proposal to separate stormwater charges from wastewater and to shift some costs to an impervious‑area–based stormwater utility rather than continuing to recover stormwater costs through water‑use charges.
The briefing, led by the city manager's office and the utilities team, said the City’s current “water pollution control” charge bundles wastewater and stormwater costs and that, after decades of combined‑system work, the remaining stormwater costs are now more directly attributable to impervious area than to water consumption. “The recommendation is going to be…that a stormwater utility should come in,” the city manager said during the discussion, and consultants will present guardrails and detailed proposals at a public meeting planned for November.
Councilors asked how the proposed changes would affect different household types, and whether the city should instead raise property taxes to spread costs. “If we take the 37% out for stormwater, you still have a disconnect…you’re going to need some type of fixed fee or floor to try to adjust that,” said Rob Schultz, director of utilities, during the discussion of fairness for low‑water users and seasonal homes. Officials said a fixed base charge plus a variable portion is one option to address disparities between year‑round and seasonal households.
Council members emphasized communication and public engagement. Several councilors — including Councilor Charles Collins and Councilor Stephanie Smythe — urged broader outreach because many residents are not present year‑round and will need online options. The consultants, Interface Studio and their subconsultants, said they plan a series of public workshops, online mapping tools and materials in English and Spanish; a major public visioning event is expected in December.
Officials said the city faces large, near‑term necessities at its wastewater treatment plant and other underground infrastructure that drove recent rate increases, and that delaying action would further increase long‑term fiscal risk. The utilities director outlined the practical hurdles: large impervious areas (commercial and institutional properties) will see larger changes if the charge is based on impervious area; there are policy choices about credits and thresholds; and implementation requires substantial public education.
The Council did not take a final vote on rates or the creation of a stormwater utility. Staff said the next step is the November public listening session to present results from the rate consultant and to collect detailed public input before bringing any ordinance or rate proposal back to the Council.
Ending: Officials said they plan a public session in November and additional outreach through the planning and communications departments; staff noted that if the Council supports a stormwater utility, associated ordinance drafting and public hearings would follow before any changes take effect.
