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NEWPORT — The Newport City Council heard Monday, Sept. 15 three alternative rates for Newport’s drinking water system.
Presented by the Rural Community Assistance Corporation, the three rate increases under consideration are at 2.5%, 3% and 4% each year.
With 1,089 drinking water connections serving 2,200 residents both within and outside city limits, Newport conducted a rate study to continue funding reserve accounts and planning for capital improvements to aging infrastructure. For almost a year, RCAC has been working with city staff to develop a rate structure that meets maintenance and reserve needs, as well as budget for expected capital improvement projects.
“General things that we recommend, keeping rate increases at least in line with inflation is good, but accounting for your reserves and your eventual [Capital Improvement Plan] replacements is very critical,” said Samuel Rodriguez, RCAC small utilities consultant, at the council’s Sept. 15 meeting.
In the 3% rate alternative, Newport increases both the base and usage rates by 3% annually while maintaining the overage tier. This alternative provides a first-year affordability index of 2.32% that increases annually by 3%.
The 2.5% rate alternative does the same, but only increases the base and usage rates by 2.5%. However, increases to the affordability index are less gradual each year.
The 4% rate alternative increases the base and usage rates by 4% but has the most aggressive annual increases to the first-year affordability index. Unlike the others, this alternative allows Newport to keep up with the 4% inflation expected on city expenses.
All alternatives generate a positive annual cash flow and meet RCAC’s recommended reserve contributions for five projected years. They also show efforts to fund reserves and maintain a reasonable affordability index for drinking water, the latter of which makes Newport more competitive for funding opportunities.
“If you can contribute to those reserves and maintain them as you spend them out for your [Capital Improvement Plan], highly recommend it,” Rodriguez said. “It makes you very financially stable and sustainable, especially if you’re going to weather different events.”
Earlier in the meeting, Greater Newport Area Chamber of Commerce President Madi Campbell gave the council an update. She announced GNACC’s plans to merge with the recently closed North Pend Oreille Chamber of Commerce, leaving GNACC the sole chamber of commerce in the county.
“Our chamber is kind of collaborating with them on ways to work together in the future,” Campbell said at the meeting. “North county businesses have the option, of course, always to join the Greater Newport Area Chamber of Commerce.”
The merger comes as GNACC launches a new website: explorependoreille. com, which aims to attract people searching for Pend Oreille County to businesses in not just Newport, Oldtown and Diamond Lake, but also Cusick, Usk, Ione and Metaline Falls.
“The website is oriented more from a tourist’s perspective, or maybe a resident’s perspective,” Campbell said.
In other business, the maintenance on city streets is scheduled to end in two weeks, city administrator Abby Gribi said at the meeting.
During audience participation, one member complained about dust created by the chip and seal, adding that he had washed his house down three times and his neighbors needed to wash their cars. He asked about the city’s plan for the dust.
Mayor Keith Campbell, who had the same experience with his property during last year’s maintenance, clarified that the dust was “part of that process” and would go away with the rest of the maintenance.
