Newark backs 10-year sewer rate plan as $150m plant expansion looms
City of Newark Division of Water and Wastewater, Ohio · Meeting date: November 2, 2026 · Published: November 3, 2026
Newark’s proposed sewer tariff would raise the average residential bill by $1.13 per month in 2027 while substantially increasing industrial strength surcharges that the city says have fallen below treatment costs. The measure is intended to preserve debt-service coverage and support future wastewater capital needs, including a proposed $150 million plant expansion.
Key points
- The Service Committee voted 5-0 to send the revised sewer charge schedule to full council, with rates scheduled to begin on 1 January 2027.
- The Division of Water and Wastewater expects the revised rates to generate about $900,000 of additional revenue in 2027 and about $975,000 in 2028.
- Average residential sewer bills would rise by $1.13 per month in 2027 and a further $1.10 per month in 2028, according to staff.
- Industrial surcharge rates would rise over five years because Newark currently charges 18.7 cents per pound of BOD while treatment costs about 53 cents per pound.
- Staff said a future wastewater treatment plant expansion is estimated at about $150 million, with annual debt service of roughly $6 million to $8 million.
Full report
Newark’s Service Committee has advanced a revised sewer-rate schedule intended to fund the wastewater system through 2036, correct a long-running gap in industrial wastewater cost recovery and prepare for a proposed $150 million treatment-plant expansion.
The committee voted unanimously on 2 November to forward Ordinance 26-33 to full council. The schedule would take effect on 1 January 2027 and replace the existing rate ordinance, which sets charges through 2032.
Staff said a 2025-26 wastewater master plan and rate study found that projected sewer revenue would fall short of expenses under the present schedule. Without the proposed revisions, the sewer department would be underfunded by 2032 and would have no cash carryover by 2036, staff said.
For an average residential customer, the proposed change would add $1.13 per month in 2027 and a further $1.10 per month in 2028. The schedule would increase the all-customer administrative charge from $9.94 in 2027 to $19.66 in 2036, while the commodity charge would rise from $2.52 to $4.97 over the same period. Each account would remain subject to a monthly minimum of 300 cubic feet or actual metered use, whichever is greater.
The division expects the proposal to add about $900,000 in revenue in 2027 and about $975,000 in 2028. Staff said the rates are structured to retain a 1.0 debt-service coverage ratio, meaning cash revenue equal to annual debt payments. The system currently pays about $5 million a year in debt service.
The most significant adjustment would apply to industrial strength surcharges for carbonaceous biochemical oxygen demand, total suspended solids, ammonia and chemical oxygen demand. Staff told the committee that surcharge rates have not increased since 2016 and do not cover treatment costs. Newark now charges 18.7 cents per pound of BOD against an estimated treatment cost of about 53 cents per pound.
The proposed five-year surcharge increase is intended to bring revenue into line with treatment costs by 2031 or 2032. Staff said a one-year correction would have meant a 200% increase, while the proposed approach represents a 41% rise over five years. The division met with its 12 largest industrial users; staff said one raised concerns and is meeting with the city regularly on measures that could reduce its discharge load.
The revised rates also support long-term capacity planning. Newark’s wastewater plant is rated for 8 million gallons per day and currently treats about 7.5-8 million gallons per day. A study has enabled the city to increase its rated flow to 9 million gallons per day without capital expenditure, staff said. A larger expansion proposed within the next decade is estimated at about $150 million, requiring roughly $6 million to $8 million in annual debt service.
Separately, the committee unanimously forwarded a complete replacement of Chapter 1040, the city’s sewer-use ordinance. Staff said the overhaul, the first since 2012, incorporates Ohio EPA comments and updates requirements governing industrial pretreatment, prohibited discharges, wastewater-strength limits, permitting, monitoring and enforcement.
This summary was generated by AI based on the source document and may contain errors.
Source: Public Service Committee, City of Newark Division of Water and Wastewater