Up the Big Creek drainage on Newport's north side, two earthen dams built of compacted soil, rock and clay hold most of the city's water. Dam #1 dates to 1951 and holds about 57 million gallons. Dam #2 went up in 1969 and holds about 270 million. In 2021, the Oregon Water Resources Department classified Dam #1 as Unsafe and Dam #2 as Potentially Unsafe, citing weak soils identified in 2011. Under a consent order, the City of Newport has to replace or rehabilitate both dams by the end of 2036.
That deadline is ten years away. As of the city's August 2026 staff report, it has no construction funding behind it. The $38 million bond on this November's ballot touches the dam with one project, an overflow pipe repair. If you're comparing a Newport address with places outside city limits, the ballot measure tells you what your tax bill does for the next 20 years. The dam is the bigger open item in Newport's carrying costs, and nobody can put a number on it yet.
What "projected to maintain the current tax rate" means on a tax bill
Measure 21-244 is a replacement bond. The City of Newport's bond page describes it as a bond "designed to replace an existing bond that is expiring," structured so the tax rate "is expected to remain the same as the current rate."
Today the levy covers two voter-approved bonds, one for the Water Treatment Plant and one for the Aquatic Center. The city puts the combined 2027 rate at $1.63 per $1,000 of taxable assessed value. The city's FY 2026–27 adopted budget says the Water Treatment Plant bond expires in 2029. The budget's financial strategy recommends replacing it "one-for-one" with a general obligation bond so that "property tax rates are not expected to increase."
So the measure keeps a levy in place that the 2029 expiration would otherwise begin to retire, and it runs for 20 years. On the math, a property with $400,000 in taxable assessed value pays about $652 a year toward city bonds at the $1.63 rate. That is a hypothetical figure for illustration. The city adds that "actual tax impacts can vary depending on property values," and the Lincoln County Assessor's Office sets those values. If you're buying, the takeaway is that the bond line on a Newport tax statement isn't scheduled to go away at the end of the decade if the measure passes.
City officials have made their case publicly. On October 8, 2026, KLCC reported that City Councilor CM Hall stressed the bond would not raise taxes. "We've had so much deferred maintenance, a lot of that related to COVID times," Hall told the station. KLCC also noted a letter in the Lincoln Chronicle in which the mayor and council unanimously urged approval. The letter cited "failing infrastructure at Big Creek Dam and at the Nye Beach and 55th Street pump stations." Voters decide the outcome, and this post takes no position on it.
What the $38 million is set to cover
The Newport News Times counts 17 projects in the package. The city's own page shows 16 entries, and one of them pairs the Nye Beach and Bayfront pump stations. The city scheduled tours on October 26 and 27 of the Wastewater Treatment Plant, the Water Treatment Plant and the Nye Beach Pump Station, because all three have projects in the measure. The city's project list includes:
- Water and wastewater: Nye Beach & Bayfront Pump Station Capacity Upgrades, Big Creek Dam Overflow Pipe Repair, Effluent Outfall Rehabilitation, Clean Water Storage Tank Rehabilitation, the Sewer Inflow & Infiltration Reduction System, 55th Street Pump Station Relocation, Main Tanks and Transmission Seismic Resiliency, Northside Fire Flow Improvement, and the Biosolids System Upgrade
- Streets and sidewalks: the Pavement Management Program, West Olive Street Improvements, and the Sidewalk Cost-Share Program
- Parks and facilities: Betty Wheeler Park Improvements, Sam Moore Park & Trail Safety Improvements, an Elevator Compliance Upgrade, and a Secure Impound Storage Facility
The council dropped several projects on March 30, 2026, including Don & Ann Davis Park, Big Creek Park and Fall Street improvements. The city also says the $38 million figure came from independent bond counsel, as the most the bond could be "while keeping existing rates similar." So the rate set the size of the package, and the size of the package limited what fit inside it. A dam remediation estimated at up to $77 million couldn't fit inside a $38 million ceiling.
How the dam estimate moved over eleven years
The cost history explains why the city changed plans. It also shows how much the final figure can still move. The record, from City Manager Nina Vetter's August 14, 2026 staff report and the city's April 2026 release:
- 2015: A new roller-compacted concrete dam, replacing the existing two, became the preferred alternative, at roughly $80 million.
- 2025: At 30% design, that estimate reached about $185 million. A financial analysis found a project that size "would not be financially feasible without significant additional funding."
- April 2026: After an alternatives analysis by Jacobs Engineering Group, the council unanimously advanced two options. One remediates both dams. The other removes Dam #1 and remediates Dam #2. The estimate is $30 million to $77 million, "depending on fish passage," and the final choice comes "at a later, currently undetermined date."
- August 2026: The project entered design, permitting and funding. The work underway includes breach modeling for Dam #1, updated financial scenarios, and coordination with ODFW on fish passage.
The $47 million gap between the low and high ends turns mostly on fish passage, which is still being worked out with ODFW. Final plans are expected by May 2028. The city is seeking construction funding on the assumption that work begins by 2033, three years before the consent order deadline.
The money on hand and the money still missing
| Source | Amount | What it covers |
|---|---|---|
| Oregon Lottery Bond award, 2022 | $14 million | Design and permitting |
| Spent on the earlier concrete-dam design | About $7 million | 30% design of the abandoned plan |
| Remaining from the state award | About $6.7 million | Expected to finish final design |
| Federal authorization, 2022 | $60 million | Eligibility only, no funds appropriated |
| Construction financing | None identified as of August 2026 | State, federal, loan and grant options under review |
The federal line looks the largest and is the easiest to misread. The city's April 2026 release says the authorization "does not provide actual funding." It sets up a legal framework, and "additional legislative steps are required before any federal dollars are received." For now, the city can pay for designing the fix but not for building it.
Where water and sewer bills fit in
Water and sewer rates are the other place Newport's infrastructure costs land. The FY 2026–27 utility fee schedule runs July 1, 2026 through June 30, 2027. For an in-city single-family home on a 5/8-inch meter:
- The monthly water minimum rose from $29.11 to $30.57
- The monthly sewer minimum rose from $43.78 to $45.97
- Sewer usage went from $11.23 to $11.79 per 1,000 gallons
The adopted budget calls this a 5% increase across water, wastewater and stormwater rates and doesn't tie it to the dam. No adopted plan yet says how construction will split among grants, loans, rates or a future measure. Until one exists, the dam is a real obligation that hasn't been assigned to anyone's bill.
Putting this into a Newport purchase
If you're comparing an in-city Newport home with one elsewhere in Lincoln County, the measure settles a piece you can model. A yes vote means a $1.63 bond rate projected to carry forward for 20 years. The dam is an obligation with a known deadline, a $30–77 million range, and no assigned funding. Neither shows up in a list price, and both are on the public record. The city's bond page, its project tracker if voters approve the measure, and the council's Big Creek updates are where the next numbers will appear.
Quick answers
Does the bond measure fix the Big Creek dams? No. It includes the Big Creek Dam Overflow Pipe Repair. The remediation the consent order requires is a separate project, estimated at $30–77 million.
When would bond projects start? The city says planning would begin right away if voters approve. Larger construction projects could take several years.
Who oversees the spending? The city says a Bond Advisory Committee would be formed, and spending would go through independent audits and public reporting of expenditures.
This post is general information and not tax, legal or financial advice. If you're estimating property taxes or utility costs on a specific property, confirm the figures with the Lincoln County Assessor, the City of Newport, or your own tax professional.
When you're weighing a Newport home, the tax bill and the water bill come with it. At Audra's Coast Homes, we put the city's infrastructure record into the due diligence alongside the views and the floor plan, so you go in knowing what's settled and what isn't. Let's connect.
