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NEWPORT — Rates may no longer increase next year in Newport.
At its Monday, Dec. 1 meeting during a public hearing discussing next year’s budget, the Newport City Council asked city clerk-treasurer Nickole North to propose another budget that reduced the water and sewer rate increases from $13 to about $8, as well as removed certain items. Currently, water and sewer rates are $132.
The public hearing will continue at the council’s next meeting at 6 p.m. Monday, Dec. 12 at Newport City Hall. Afterward, the council must pass next year’s budget, since it does not meet again before the end of this year.
“We’re increasing rates on citizens, and we need to do some cutbacks now,” council member Mark Zorica said.
As passed 4-1 by the council Monday, Nov. 17, water and sewer rates are both still increasing by 3% per cost-of-living adjustments, or COLA.
Sewer rates were set to increase by an additional $5 and $3 for repayment of two loans: a Washington State Department of Ecology loan and a 2003 U.S. Department of Agriculture sewer bond, both of which funded improvements to the wastewater treatment plant. Previously, the city was not charging residents enough to cover payments for the sewer bond; with this increase, the city expected to be in compliance with repayment within six years.
However, concerns were once again raised by council members, including Zorica, the only one who voted against the increases Monday, Nov. 17.
“I know for us it’s a great time for [this increase], but the problem is for the people it’s not the right time for it,” Zorica said. “Whatever it takes for us to show that we’re just not take, take, take, we need to figure something out.”
North suggested the city only charge residents an additional $3 and $1 for repayment of the loan and sewer bond, halving the increase excluding COLA. The other half will be supplemented by money moved from the sewer reserves to the sewer budget.
Though city administrator Abby Gribi seconded North’s suggestion, she advised the council that it was not sustainable for the city long-term. The city needs money in the sewer reserves to account for failures in the wastewater system, she said, among other scenarios. Moreover, that $13 was only the first of the increases staff will request in the next couple years, as the city accrues debt from the loans.
“Infrastructure’s unfortunately really expensive,” Gribi said. “Where we’re at right now, we can take that approach maybe this year. Longterm, it’s not a fix.”
As of now, Gribi said the city only has 1,000 connections to distribute rate increases between, though the goal is to change that with more developments. In the meantime, council members cautioned residents to prepare for an even higher increase in 2027.
“This really impacts people, and it’s huge, and it’s going to be a hardship,” council member Jamie Sears said. “And I don’t want to price people out.”
The council also asked North to remove two other items from next year’s budget: $10,000 for a Newport Police Department contract with Flock Safety, and $15,000 for a fence around the RV Park.
Some municipalities have taken part of or all their systems offline due to the controversy surrounding Flock Safety, whose license plate readers have caused lawsuits, council member Nathan Longly said. He recommended the contract be removed from next year’s budget until concerns around safety and privacy are addressed.
Similarly, the fence is a lower priority for the city compared to water, sewer and other infrastructure, though Gribi said she at least wanted more signage by the RV Park.
“That can be taken out, and then we can look into seeing if we can get funding for it,” North said of the fence. “It can always be added back in at a later time.”
Before the public hearing, the council unanimously rejected Newport Cannabis’ request to reduce the setback between itself and TLC Learning.
Newport Cannabis is a would-be marijuana retailer with a lease at 204 W. Walnut St. That’s less than 1,000 feet away from TLC Learning at 110 Pine St., a non-licensed, non-operating childcare center owned by Ty Krohn. He’s not only a city planning commissioner, but also the owner of Pend Oreille Cannabis Company, Newport Cannabis’ competitor.
Co-owner Cory Plager alleged that Krohn formed TLC Learning May 16, the same day another childcare center within the 1,000-foot setback moved to another location, in order to prevent Newport Cannabis from opening.
“This to me is somebody that has inside information that knew that the one was moving, started a business,” Plager said. “Hastily, it seems to me.”
Since Krohn has yet to comment publicly, council members responded that they did not have enough information to reduce the 1,000foot setback, which the council took over four years to finalize. A couple council members encouraged Plager to find an alternative location within Newport or beyond city limits, which is under the county’s jurisdiction.
“Government is really slow,” Sears said. “We know how long it takes to get permitted. How many people have come to us for a laundromat?”
In other business, the council accepted over $300,000 in grants from the Transportation Improvement Board to apply more chip seals and fog seals to city streets next year.
After the budget hearing, the council amended this year’s budget to add $200,000 in grants for growth management and climate planning and $1.8 million in loans from the Drinking Water State Revolving Fund and Public Works Board.
“Those are all loans that are in the budget and already been approved and everything,” North said. “So they just need to be placed in the budget so that we can start receiving reimbursements for these things that we’re accruing costs for.”
