Newport City Council: Water & Stormwater Rate Study Update (2025-11-24)
Newport City Council: Water & Stormwater Rate Study Update (2025-11-24)
The Newport City Council held an informational meeting to present the progress and findings of an ongoing rate study regarding wastewater and stormwater services. Administrator Rob and consultants from RAF Tellus and Jacobs outlined the historical context of the city's aging infrastructure, recent capital improvements, and the necessity of transitioning to a fairer funding model that separates stormwater costs from wastewater charges. The meeting emphasized that current billing structures, which tie stormwater fees primarily to water consumption, do not accurately reflect property impact on the stormwater system, leading to inequities for seasonal residents and property owners.
Consent Calendar
- No consent calendar items were scheduled or discussed during this informational session.
Public Comments & Testimony
- Dave Fox (RAF Tellus) and Katie Cromwell (RAF Tellus) presented findings but did not solicit formal public testimony during the presentation, instead directing attendees to an open house and online survey.
- Administrator Rob emphasized the need for community feedback, urging residents to complete a survey via QR code or website to help establish "guardrails" for future rate structures. He noted that no formal opposition or support was articulated by the public in the transcript, as the session was designed to gather general understanding and input rather than votes on specific ordinances.
- Administrator Rob highlighted concerns regarding the "rate shock" experienced by residents due to recent water rate increases (17-18% in March and 30-40% for water pollution control) and the current implementation challenges with the Munilink and Invoice Cloud systems, assuring the public that no penalties or interest are currently being applied to delinquent bills.
Discussion Items
- Infrastructure History and Modernization: Administrator Rob detailed significant upgrades over the last decade, including the modernization of the Long Wharf pump station (a $12.5 million project adding 7-8 million gallons of capacity) and improvements to the Wellington Avenue pump station. He noted that the system has moved from handling double-digit sunshine flooding events annually to single digits, and that the city has secured EPA approval to transition to a new permit phase.
- Rationale for Rate Study: Dave Fox explained that the historical single-pipe system justified a unified rate structure. However, with the separation of sewage and stormwater pipes, he argued that the current method of recovering costs—based on water meter size and water consumption—is no longer equitable. He stated the goals are to identify all future operational and capital costs and recover them through a transparent, fair, and stable mechanism.
- Stormwater Utility Options: Katie Cromwell presented three funding models:
- Funding through existing wastewater fees (current method), which she noted disadvantages seasonal residents who pay little in summer but need year-round management.
- General tax dollars, which she argued creates variability and does not correlate with stormwater demand.
- A dedicated stormwater utility fee based on property impervious area, which she described as the most equitable method because properties creating more runoff pay a higher share.
- Proposed Future Implementation: The team proposed a dedicated stormwater utility fee. The discussion highlighted that this would align costs with the specific demand properties place on the system (impervious area), rather than volume of water used. The speakers clarified that this is a recommendation process, not an enacted law, and the goal is to move away from "reactionary" maintenance to a "value-driven" preventative approach.
Key Outcomes
- Next Steps: The city will continue gathering public feedback via an online survey (available via QR code and website) and an upcoming open house session.
- Timeline: The rate study process is expected to take several months. The city does not intend to implement changes by the July 1st budget cycle deadline; instead, a formal recommendation will be brought to the Council for a potential "yes or no" decision after further study and deliberation.
- Directives: Council staff and consultants are directed to incorporate public feedback into the study and prepare future presentations detailing proposed rate structures and "guardrails" for the stormwater utility. No votes were taken tonight as the meeting was an informational update.
- Discrepancies: None identified in the transcript regarding agenda items; the meeting was clearly defined as an informational update on the rate study rather than a legislative hearing.
Meeting Transcript
That was going to be coming that isn't here. No. All right. I'll give a couple more minutes and then we can start address uh an overall ongoing implementation with the billing and the new Munilink and invoice cloud and everything. And so we're hopefully going to be back on the monthly schedule next month. We do have a high volume of calls, but I just wanted to stress two things that right now there's no penalties or interests that are being applied to any of those bills. And so we're working through all of that to get back on to the regular schedule for it. And that should be happening next month. And so outside of some of the implementation challenges with the various vendors to modernize that system, we also have two different rate cases, uh rate cases that got applied this year. So water was back in March, which was around 17 to 18%, and then we just had the one for water pollution control that was 30 to 40 percent. So there was quite a bit of rate shock. Um we hadn't had one on the water pollution control end for for some time. And so that that isn't helping, trying to have everyone understand and know where it is. Uh I will have one of the billing staff members and I have a medium meter staff uh person here, Kyle, if anyone has questions on those elements. But overall, um, from the standpoint of tonight, really what we wanted to do is kind of walk through uh where we were, where we are now, and and where we need to go uh across the board. So it's very much kind of now into the future and more of the foundational level. So I'm gonna try to not do buzzword bingos, and I bought friends, so everyone doesn't have to listen to me like they usually do for for uh an extended period of time. Um we're gonna try to go through it at a at a good pace, and then realistically want to have three different areas where you can come up and interact with myself, staff or Jacobs or Raf Tellis team that are here. Uh, and it's there's there's a lot into it. We're not gonna try to get into the data and all that tonight. We're gonna just wanna give you that outline and foundation so we can say you know where we were, where we are, and and where we're going. And so it's very much to you know, try to get that information out to you. And the other topic, and I'm I'm stealing it from uh a colleague at Ref Tellus is we've inherited much of this. None of it happened yesterday, some of it was a decade ago. That's probably the newest portion. But if you actually dig into it, it's a hundred years or or more in several of the of the sections uh that that we have. And so just as we inherited all of those decisions, some of them from over a century ago, it's aging, it's stress, the storm patterns are changing in that. And so we're working with that, and we want to do it in a fair manner. Uh I never have good news with the cost of it. Nothing we do is is inexpensive. Um, we do try to do everything we can as efficiently as possible, but uh, you know, as part of an add-on to this, we're we're getting a pretty good wellness check on our operational uh assessment in the in the financial on the water end. Uh they do a deep dive every time we go up state to the to the public utilities commission. And so uh there's a a lot of that in there. Um, but you know, just from that standpoint that we're never gonna tell you what you want to hear. We're always gonna say what it is, and we have known for for some time um that we needed to do some tweaks to it. So we're gonna kind of walk through. I took too long already with the welcome. I promised I was gonna be brief, but I guess I'm I'm channeling Joe Nicholson as uh Crispian would say. Uh and then very much, you know, where we are today, why the rate study, and we've already been kind of doing the rate study for a little more than a year. Uh, the affordability of utilities, both water, uh, water pollution control and stormwater have been um I think my entire time with the city have been a big component of it. It always kind of gets lost trying to balance everything. Um, but now we're at a point where we can implement uh better and more modern uh and really kind of have have a fairer section to it. And so this is gonna lead into us recommending uh a stormwater utility. So we want to tell you what that is, and it can look like some from pretty different things. So we're not ready to do that tonight, but you're going to have the guardrails on where we are for that. And then we'll have the next steps. One of the one of the biggest things is feedback. So overall we want to get clear information. I probably already use too many buzzwords. How we do wastewater and stormwater services, how they're funded today, and then what the options are.
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