Stormwater Fee
Newport is proposing to bill stormwater service based on hard surface area rather than water use, which reallocates an existing cost more fairly across properties. Total system cost does not change.
This cost already exists in the sewer rate. It is being separated and assigned based on impervious area, the actual driver of stormwater service cost.
What this rate study is, and is not
- Same cost, different allocation. Total system cost does not change.
- Not a new charge. Stormwater costs are already being collected today, embedded in the sewer rate.
- Driven by impervious area, not water use. Hard surfaces drive runoff, not faucets.
- Deferral does not reduce cost. It compounds it. The longer the system waits to align cost with cause, the larger the eventual correction.
Why a Separate Stormwater Fee
Today, the cost of operating and maintaining Newport’s stormwater system is embedded in the sewer rate. That structure was reasonable when it was established, but it has two consequences:
- It distributes stormwater cost by water use, not by runoff. A property that uses very little water can have a large roof and a large paved area that sends substantial stormwater into the public system. That property pays little toward stormwater today. A small property with high water use pays more than its runoff contribution warrants.
- It hides the true cost of stormwater service. Residents and businesses cannot see what they are paying for stormwater versus what they are paying for sewer, and the Department cannot transparently defend stormwater investment decisions.
A dedicated fee corrects both issues. It bills stormwater service based on the impervious area of each property, which is the direct driver of runoff volume and the direct driver of the cost of managing that runoff.
What the Fee Funds
The stormwater fee funds only stormwater system work. Revenue from the fee cannot be used for the sewer system, the drinking water system, or the general fund. Every dollar collected supports:
Operations and maintenance
- Catch basin cleaning and inspection
- Pipe and outfall inspection and repair
- Street sweeping tied to stormwater quality
- Tide gate and pump station maintenance
- Emergency response to flooding and blockages
Compliance and capital
- MS4 permit compliance (RIPDES)
- NPDES reporting and monitoring
- Flood mitigation projects
- Green infrastructure and water quality improvements
- System replacement and resilience investment
How the Fee Is Calculated
The proposed fee uses the Equivalent Residential Unit (ERU) method, the standard approach used by stormwater utilities nationally. One ERU represents the typical impervious area of a single-family residential property in Newport, which the rate study has set at 2,400 square feet.
Measure impervious area
City parcel data and aerial imagery identify the total hard-surface area (roofs, driveways, patios, parking) on each property.
Define one ERU
One ERU equals 2,400 sq ft of impervious area, based on the typical single-family home in Newport.
Assign ERUs to each property
Residential properties are grouped into three fairness tiers. Non-residential properties are billed per ERU based on measured impervious area.
Apply the fee and credits
The monthly fee is calculated from the property’s ERU assignment. Credits for on-site runoff controls will reduce the amount owed.
Residential tiers (proposed)
| Tier | Impervious area (sq ft) | ERUs | Proposed monthly fee |
|---|---|---|---|
| Tier 1 | 400 to 1,500 | 0.5 | $7.31 |
| Tier 2 (typical) | 1,500 to 4,200 | 1.0 | $14.62 |
| Tier 3 | 4,200 to 7,555 | 2.5 | $36.55 |
| Cap | Greater than 7,555 | Per ERU | $14.62 per ERU |
Non-residential properties are billed per ERU based on measured impervious area (total impervious area divided by 2,400 sq ft).
How the residential tiers were designed
Residential tiers are based on measured impervious area data for all single family residential parcels in Newport. Tier breakpoints were set where natural dips appear in the parcel distribution to minimize boundary impacts, and the cap was set at two standard deviations above the median, identifying properties whose impervious area is substantially different from the rest of the residential class.
Approximately 70 percent of single family residential parcels fall within Tier 2, where the median impervious area of 2,404 square feet aligns with the 2,400 square foot Equivalent Residential Unit (ERU) definition. This means the typical Tier 2 property pays a charge calibrated precisely to its measured impervious contribution.
Tier 1 (0.5 ERU) reflects the small share of parcels with low impervious area. Tier 3 (2.5 ERU) reflects band-average system demand for properties between 4,200 and 7,555 square feet, recognizing that Tier 3 properties approach the per-ERU cap (3.15 ERU at 7,555 square feet) and contribute meaningfully to stormwater system demand. Tiering provides simplified, predictable billing for residential customers; non-residential properties are billed per ERU based on measured impervious area.
Who Pays
Properties with hard surfaces contribute runoff to the public stormwater system regardless of whether they have a water or sewer connection. The fee reflects that contribution. The fee therefore applies to a broader group of properties than the current sewer rate.
| Property Type | How the Fee Applies |
|---|---|
| Single-family residential | Billed by fairness tier (one flat fee per tier). |
| Multifamily residential | Billed based on total impervious area in ERUs. |
| Small business or professional services | Billed based on measured impervious area in ERUs. |
| Large commercial, hotels, and industrial | Billed based on measured impervious area in ERUs. Credits available for qualifying site improvements. |
| Institutional and tax-exempt (schools, hospitals, houses of worship) | The stormwater fee is a service charge, not a tax. It applies to all properties that contribute runoff to the public system, including tax exempt entities. Credits are available on the same terms as for other property owners. |
| Stormwater-only accounts (parking lots, properties with private wells) | Receive a stormwater bill even if they do not receive a water or sewer bill today. |
| City and Federal properties | Billed consistent with applicable law and intergovernmental agreements. |
Bill Impact Examples
The examples below use the proposed rates presented at the April 1, 2026 public workshop. They show how the combination of a restructured wastewater rate and the new stormwater fee would affect representative properties.
Typical residential
Seasonal residential
Large non-residential
Small non-residential
What the rate study found across all properties
- Residential: The most common change is a decrease of $25 to $0 per month. Most single-family properties see a lower bill under the proposed structure.
- Non-residential: The most common change is an increase of $0 to $25 per month, with the largest increases falling on properties that have substantial impervious area relative to their water use.
- Seasonal residential: Bills remain near parity because the fixed-charge increase is offset by reduced volumetric charges during high-use months.
- Revenue distribution: The residential share shifts slightly from 34 percent to 37 percent of total utility revenue, reflecting the cost reallocation tied to impervious area.
Source: Raftelis and Jacobs rate modeling presented at the April 1, 2026 public workshop. See the Rate Study and Fees page for the full workshop deck.
Hard Questions, Direct Answers
Why now
Newport’s wastewater rate structure is decades old and was designed when stormwater costs were a small share of utility expenses. Today, stormwater compliance, drainage maintenance, and flood mitigation account for a measurable and growing share of total cost. The current rate hides that cost inside the sewer rate, which means the City cannot transparently fund stormwater work or defend stormwater investment decisions to the public.
Is this a new tax
No. Stormwater costs are already being collected today, embedded in the sewer rate. The proposal moves the same cost to a dedicated line item billed against the actual cost driver. Total system cost does not change.
Who pays more, who pays less
Most single family residential customers pay slightly less under the proposed structure. Most non residential customers pay slightly more, with the largest increases on properties that have substantial impervious area relative to water use (large parking lots, low water use commercial). Seasonal residential properties remain near parity.
What happens if nothing is done
Stormwater obligations under the City’s MS4 permit and consent decree do not pause. Costs continue to accrue inside the sewer rate, growing as compliance and infrastructure needs grow. The longer the misalignment persists, the larger the eventual correction. Deferral does not reduce cost. It compounds it.
Why stormwater is not based on water use
Water use does not cause stormwater runoff. Hard surfaces do. A small property using a lot of water generates very little stormwater. A large property using very little water can generate substantial runoff. Billing stormwater service by impervious area matches the cost to the cause.
Credit Program (in development)
The Department is developing a credit program that will let property owners reduce their stormwater fee by investing in runoff reduction measures. Credits recognize that a property that manages its own stormwater places less demand on the public system.
- Residential credits may be available for rain barrels, rain gardens, and other qualifying practices.
- Commercial and industrial credits may be available for green infrastructure, pervious pavement, detention, water quality treatment, and education programs.
- Credits reduce, but do not eliminate, the fee. Every developed property relies on the public system as a backstop during major storms, so a base contribution is preserved.
The detailed credit manual will be published before the fee takes effect and will be the subject of a dedicated public workshop.
Regulatory Context
The stormwater fee funds work the City is already legally obligated to perform.
- MS4 permit under RIPDES. The Rhode Island Pollutant Discharge Elimination System Phase II Small MS4 General Permit, issued by RIDEM under authority delegated by the U.S. Environmental Protection Agency under Clean Water Act Section 402, requires Newport to operate a permitted municipal separate storm sewer system program that reduces pollutants in runoff.
- NPDES reporting. Federal Clean Water Act obligations implemented through the MS4 permit.
- Consent Decree with EPA and RIDEM. Newport operates under a long standing federal consent decree addressing combined sewer overflow control. The stormwater fee provides a stable funding mechanism for the operational and capital work these permits and decrees require.
Frequently Asked Questions
Is this a new tax?
No. It is a service fee tied to the City’s operation and maintenance of the stormwater system. It is billed only to properties that contribute runoff to the public system and it can only be used for stormwater work.
Will my total utility bill go up?
Based on the rate study’s April 2026 modeling, most single-family residential customers would see a small decrease (most commonly $0 to $25 per month lower). Non-residential customers most commonly see a small increase ($0 to $25 per month higher), with larger increases concentrated on properties that have substantial impervious area relative to their water use. Seasonal properties see roughly neutral impact. See the Bill Impact Examples above for specific scenarios. These figures are proposed and not final.
Why is my impervious area being used instead of my water use?
Water use does not cause stormwater runoff. Hard surfaces like roofs and pavement do. Billing stormwater service by impervious area matches the cost to the cause, which is the fairer basis.
I have a private well and no sewer connection. Will I still pay?
Yes, if your property has impervious area that contributes runoff to the public stormwater system. The fee reflects each property’s contribution to the system regardless of water source or sewer connection.
Do churches, schools, and nonprofits pay?
Yes. The stormwater fee is a service charge, not a tax. It applies to all properties that contribute runoff to the public system, including tax exempt entities. Credits are available on the same terms as for other property owners.
How is this different from the CSO Annual Fixed Fee?
The CSO Annual Fixed Fee (Section 13.12.015) funds the City’s Long-Term CSO Control Plan and is restricted to CSO work. The stormwater fee funds the stormwater system itself: drainage, flood mitigation, MS4 compliance, and water quality. The two fees are legally and operationally separate.
Can I contest my impervious area measurement?
Yes. When the fee is implemented, property owners will receive a measurement statement and will have a defined window to request review. The formal correction process will be published on this site before billing begins.
When will this take effect?
No effective date has been set. Adoption requires two public hearings before the City Council. Following adoption, implementation typically requires several months for billing setup, credit program rollout, and customer notification.
Where does the money go?
All stormwater fee revenue is held in a dedicated utility account. It can only be used for stormwater system operations, maintenance, compliance, and capital investment. The Department is fully rate-funded; no property tax revenue supports utility operations.
Who made this decision?
No final decision has been made. The City Council holds the authority to adopt or modify utility rates after public hearings. The Department of Utilities, with support from Raftelis and Jacobs Engineering, is responsible for the technical study and the public engagement process that informs the Council’s decision.
Questions or Comments
Email: ratestudy@NewportRI.gov
Phone: 401-845-5600 (Monday to Friday, 8:00 AM to 4:00 PM)
Mail: Newport Department of Utilities, 70 Halsey Street, Newport, RI 02840