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Newport staff propose replacement bond to fund critical infrastructure, target Nov. 2026 ballot
Summary
Staff recommended a 1‑for‑1 replacement of an expiring water‑treatment bond to preserve the current tax rate while generating roughly $38 million for prioritized projects; staff recommended public outreach, a bond advisory committee and a Nov. 2026 referral timeline with an August decision point.
City staff told the council they recommend replacing an expiring water‑treatment bond in June 2029 with a 1‑for‑1 general obligation bond that would preserve the city’s current tax rate and provide about $38,000,000 for capital projects.
"Our recommendation is to replace the water treatment plant bond, which expires in June 2029 with a 1 for 1 bond replacement," Nina said, explaining the replacement would roll existing debt forward rather than increasing the tax rate. Staff told the council they compiled an $81,000,000 list of candidate projects and would pare that down to the $38,000,000 the replacement structure would support.
Staff described a financing structure that defers debt service for roughly two years while the existing water bond pays off, a choice that reduces up‑front taxpayer impact but costs money (staff estimated $1–2 million in financing costs that would reduce project dollars). "The type of bond we're proposing, they defer the payments the 1st 2 years until the water bond is paid in full," Finance Director Steve Bahar said.
Staff recommended targeting referral to the November 2026 ballot and emphasized public outreach, polling and built‑in off‑ramps (the formal council referral would occur in August) before any city advocacy is constrained by election rules. The council signaled informal consensus to move forward with the outreach and prioritization work; no formal referral was taken at the meeting.
