Newburgh proposes $41.3 million bond and phased rate hikes to fund EQ tank, officials say

Town of Newburgh officials on Thursday presented a plan to issue an approximately $41.3 million bond to finance a wet‑weather equalization (EQ) tank and preliminary screening work at the wastewater treatment plant, and proposed phased rate increases in 2026–2028 to cover debt service and asset‑management obligations.

Doug Baldessari of consulting firm Baker Tilly told the council and the public that the EQ tank is intended to hold excess flow during heavy rain so the plant can treat wastewater without overflowing. He said the system’s design hydraulic capacity is about 19.2 million gallons per day but the plant now receives more than 25 million gallons per day during storms, which has forced operators to throttle pumps to avoid overflows. Baldessari said the planned project and related work are the largest drivers of the proposed rate adjustments and that the town expects to market a 20‑year open‑market bond with two years of interest‑only payments to moderate early-year impacts.

Why it matters: town officials said the project will reduce the risk of sanitary sewer overflows, help the utility comply with an existing EPA consent decree tied to past discharges, and postpone a larger immediate expansion of the treatment plant. Baldessari said capital improvements account for roughly 77 percent of the total projected revenue need and that…