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Newport utilities officials outline FY26 budget, warn of continued infrastructure shortfall
Summary
Director Rob Schultz told the council the FY26 water and wastewater budgets are smaller than FY25 after PUC corrections, but deferred capital and aging infrastructure mean rates and other funding changes are still needed to avoid larger emergency costs.
Rob Schultz, manager/director of the Department of Utilities, told the city council at a budget workshop that the FY26 water budget is lower than FY25 after the Public Utilities Commission adjusted a previously proposed rate increase and that core services and compliance will be maintained.
Schultz said the March 1 PUC order implemented a multiyear, four‑step rate plan that reduced what the council had previously approved as a proposed rate. “The proposed budget this year is actually less than what was approved last year. It's around 17 and 0.5 percent for a Newport residential customer,” he said. He warned the capital need for aging underground infrastructure exceeds what rate funding alone can cover and outlined major long‑range projects including dam rehabilitation, system reliability work and lead service line replacement.
The director emphasized an organizational shift toward predictive asset management and publishing more operational data online so residents can see maintenance visits, crews and equipment used. He noted workforce development and in‑house capacity-building have reduced contractor costs by roughly $1,000,000 a year since 2017.
Schultz framed the FY26 budget as a transitional document: it stabilizes core services while reserving options for adjustments once a Raftelis rate study completes its equity and lifeline‑rate recommendations. He said the city could defer certain capital projects as an alternative, but deferral raises the risk of costlier emergency repairs in future years.
