Radford officials propose higher solid-waste, water and sewer fees as electric rates held for now

Radford City staff on a March budget work session proposed modest increases to residential solid-waste and water and wastewater fees while leaving city-controlled electric rates unchanged for now as officials refine wholesale power and transfer assumptions.

Craig (city staff), presenting the utility funds review, said the administration is recommending raising the residential solid-waste fee from $22 a month to $25 and increasing the city's dumpster charges by 5%. He told the council the $3 jump in the monthly residential fee would generate “an additional about a $100,000 in revenue.”

The proposal for water and sewer would raise the water charge for 4,000 gallons from $20.32 to $24.32 and increase the wastewater charge by $4 to $36.48, producing a combined bill for 4,000 gallons that would rise from $52.80 to $60.80, Craig said. He said the city’s combined water and sewer revenue under the plan would be about $6.69 million and that water sales would be “right at $3,000,000 a year.”

Craig said the electric fund initial budget does not include a wholesale power cost adjustment for fiscal 2026. He noted recent increases in purchase-power costs — “almost a $7,000,000 increase” since 2022 — and said staff will re-run wholesale power scenarios before finalizing electric-rate decisions. The electric fund currently includes a budgeted transfer to the general fund of about $3.9 million.

Why it matters: the proposed fee changes are part of Radford’s effort to shore up utility fund reserves and address declining net position in several enterprise funds. Staff described a mix of revenue shortfalls and rising operating costs — including increases in disposal fees and purchase power — that together drive the need to consider rate changes.

Details from the presentation

- Solid waste: the city bills 4,090 accounts for curbside and dumpster service. Craig estimated the drop-site operation costs the city about $70,000–$75,000 per year, primarily for hauling; he did not include any change to drop-site hours or operations in the current proposal. He said New River Resource Authority increased disposal costs by about $13,400 (roughly $2 per ton). The solid-waste net position in the proposed budget showed a modest expected gain (Craig said about $38,900) assuming the fee adjustments and filled staffing.

- Water and wastewater: the water system serves about 5,471 accounts and the treatment plant capacity is 8,000,000 gallons per day. Craig said staffing counts have fluctuated in recent budget books and that the fiscal 2026 proposal would not add a net increase in full-time positions for the utility divisions shown. On expenses, he said Peppers Ferry Regional Wastewater Authority charges were estimated at about $2.25 million for the next year.

- Electric: Craig reported the electric fund was running with positive net cash through February and cited an approximate $1.4 million margin of revenues over expenses at that snapshot. Fiscal 2026 electric sales were estimated near $28.3 million; projected total expenses were roughly $28.1 million in the version shown to the council. Craig emphasized staff will revisit wholesale power cost adjustments (he estimated potential movement of about 1–2 percent) before finalizing any local rate change.

Policy and operational context

- Payment in lieu of taxes (PILT): Craig described PILT as one way municipal utilities can transfer resources to the general fund and said the current PILT amount “has not changed in a while” and could be revisited as the overall budget is finalized.

- Recycling mandate and the drop site: council members and staff noted a state recycling requirement (presented in the session as roughly a 30% recycling threshold) that limits how much the city can reduce recycling operations without risking noncompliance. Craig warned reductions at the drop site would not fully eliminate disposal costs because much of that material still flows into the city’s collection routes.

Council process and next steps

Craig said staff will provide the full slide decks and underlying figures for council review and that the general-fund presentation is scheduled for the council’s next meeting. He explained the council must advertise any proposed rate changes ahead of public hearings and urged members to consider a conservative advertisement strategy — “you can always advertise higher,” he said, because advertising a lower rate that is later increased requires restarting the process.

During the meeting, Seth (council member) moved that the council convene a closed session under state law for legal consultation on three items, and the motion carried on an affirmative voice vote. The closed-session motion cited VA Code § 2.2-3711(A)(8) and referenced legal advice on a proposed opioid-litigation settlement, a REDI grant matter and the school capital projects account.

No formal vote on any rate ordinance or fee change occurred at the session; council members were asked to review the materials and provide direction at upcoming meetings when staff will present the general fund and finalize advertised rates.

Quotes (attributed)

Craig (city staff): “Budgets… are simply our best estimates of where we expect things to be based on the information that we have.”

Craig (city staff): “We increase that residential solid waste fee from $22 a month to $25 a month.”

Craig (city staff): “The proposed water and wastewater rates… take the combined water and sewer rate for 4,000 gallons from 52.80 to 60.80.”

Seth (council member): “I’d like to make a motion to convene a closed meeting… under VA code section 2.2-3711(A)(8) for consultation with legal counsel concerning three matters requiring legal advice, including a proposed settlement in the opioid litigation, the REDI grant, and the school capital projects account.”

Ending

Councilmembers directed staff to finalize the utility slides and to bring the general fund for discussion at the next regular meeting. Staff said they will rerun wholesale power projections and provide the full presentations and backup numbers before the council must set advertised rates and proceed to public hearings.