NEWMAN — The Newman City Council on Tuesday night is expected to take its first formal steps toward updating the city’s wastewater rates, a move staff say is necessary to keep the system financially stable as operational costs and capital needs grow over the next several years.
Council members are encouraged by city staff to approve the city’s 2026 Wastewater Rate Study and authorize the city manager to begin the Proposition 218 process required for changing wastewater rates. The study, completed by Hansford Economic Consulting, outlines the revenue Newman will need to operate, maintain and expand its wastewater system through 2032.
According to the staff report, the wastewater enterprise fund must generate enough revenue to cover day‑to‑day operations, long‑term capital improvements and emergency reserves without relying on the city’s General Fund. The study analyzed projected costs and calculated the rates needed to support the system over the next six years.
Under Proposition 218, wastewater customers must receive mailed notices and be given the opportunity to protest the proposed rate changes. A majority protest — 50 percent plus one of affected property owners — would block the increase. If the council authorizes the process Tuesday, notices must be mailed no later than Sept. 24.
The city’s timeline calls for a public hearing and protest tally on Nov. 10, followed by the first reading of the ordinance adopting new rates. A second hearing and final adoption are scheduled for Dec. 8. The new rates would take effect March 1, 2027, with June 29, 2027 marking the final day for legal challenges under SB 323.
The only direct cost associated with Tuesday’s action is an estimated $5,500 for printing and postage to mail Proposition 218 notices.
City officials say the wastewater system must be adequately funded to keep pace with growth and avoid deferred maintenance, which can lead to costly emergency repairs or regulatory violations. Approving the study and initiating the Proposition 218 process would allow the city to move forward with a rate structure designed to keep the wastewater enterprise self‑sustaining.
