The Newman City Council voted 4-1 to not only approve this year’s wastewater study, but to also authorize the city manager to begin proceedings to increase the city’s wastewater rates last Tuesday.
In February 2025, city staff consulted with Hansford Economic Consulting (HEC) to conduct a study to determine the required funding to adequately operate its wastewater system for residents and business while meeting state and federal regulations. The study provides calculated rates by customer category through March 1, 2033.
The rates were decided in compliance with Proposition 218. The proposition, known as the Right to Vote on Taxes Act, is a 1996 ballot initiative that limits local governments from raising taxes on its residents. In this case, wastewater rate fees have to be shown to provide services for Newman residents.
Catherine Hansford, the owner of the firm, presented a PowerPoint Presentation to the council that included how much residents will pay monthly and projected operating and capital costs The bill projections are based on maximum proposed rates, Hansford said.
Currently, it costs $46.96 and $42.38 monthly to rate a single-family home and an apartment complex, respectively. If the city applies a maximum rate, it could cost $49.50 monthly for rates in a home while it will decrease to $40.71 for an apartment next year, according to the presentation.
Anytime within the next six years, the city can freeze or reduce rates but cannot increase without another Prop. 218 public noticing process, according to the presentation.
From 2028 to 2033, Newman’s project operating costs will be allocated towards personnel, other operations and maintenance, contracted services, hardware replacements, power, administrative surcharge and the Newman Environmental Wetland System.
There’s a timeline for the process following the council’s approval. Two days after the council’s decision, a notice must be mailed out to property owners. On Nov. 10, a public hearing will be held and council members will take action on the first reading of the ordinance adopting new rates. A second public hearing will be held on Dec. 8 with new rates.
If approved, the rates will be in effect on March 1, 2027.
Newman Finance Director Lewis Humphries said the rates are “not written in stone”, but a look of what the city can receive from state funding.
