Stormwater Fee
Newport is proposing a dedicated stormwater fee that bills each property for its contribution to the stormwater system rather than for the water it uses. This page explains why the change is being considered, how the fee would be calculated, and what it means for your bill.
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).
Who Pays
Stormwater service benefits every property that drains to the City stormwater system, whether or not it receives a water or sewer bill today. 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 band (one flat fee per band). |
| 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) | Not exempt from stormwater fee. Billed by ERU. |
| 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.
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 the fact 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 do not fully offset the fee. Even a property with significant on-site controls still benefits from the public system during large storms and during system emergencies.
The detailed credit manual will be published before the fee takes effect and will be the subject of a dedicated public workshop.
Regulatory Context
Stormwater management in Newport is governed by a set of overlapping Federal and State requirements. The stormwater fee funds the work the City already must do to remain in compliance.
- MS4 permit under RIPDES. Requires the City to operate a 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 has operated under mandated infrastructure investment requirements for decades. The stormwater fee is an element of continuing that work with a stable funding base.
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 drain 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 drains to the City stormwater system. Stormwater service benefits the property owner regardless of water source or sewer connection.
Do churches, schools, and nonprofits pay?
Yes. Tax-exempt status does not exempt a property from stormwater fees, because the fee pays for a service the property uses. Tax-exempt entities are eligible for credits on the same terms as other customers.
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