The Richmond Sanitary District Board of Commissioners on July 22 approved Resolution 4‑20‑25 to adjust sewer and stormwater rates, a move the district says is necessary to fund expansion of sewer capacity for the Midwest Industrial Park and to meet ongoing operating and capital needs.

The board approved the resolution by voice vote after a presentation from the district and consultant O.W. Cronin & Associates explaining the revenue requirements and proposed multi‑year rate changes. Director Pat (District Director) told commissioners the district had assembled an estimated $2,000,000 to begin design work for sewer upgrades and that the immediate construction need for two portions of the Midwest Industrial Park sewer project is estimated at $26,000,000, with a third portion estimated at $12,000,000 to be needed in the next 5 to 15 years.

Consultant Corby Thompson of O.W. Cronin & Associates said the rate analysis balances three revenue needs: operation and maintenance, debt service, and an allowance for capital improvements. Thompson said the district already implemented a 5.75% increase earlier this year and that the study shows additional increases are needed across multiple years to produce roughly an additional $1 million per year in revenue to meet the district's projected revenue requirements.

The district described funding that enabled design to begin in 2022: approximately $200,000 of district funds, about $800,000 from the city’s Midwest Industrial Park account, and $1,000,000 from the county and EDC. Common Council previously approved the land acquisition funding referenced in late 2022 by ordinance (transcript reference: ordinance mentioned in late 2022). The district said it submitted the project to the State Revolving Fund (SRF) in 2023 and 2024 but the project did not fall inside SRF’s fundable range because the work is an expansion rather than a regulatory requirement; pooled SRF funding remains the anticipated borrowing vehicle for construction.

Board members and consultants discussed bond timing, outstanding debt and the district’s debt service schedule. Thompson said some bonds mature as late as 2033 and beyond and that one strategy is to smooth or “wrap” debt service so rates do not spike in a single year. Director Pat said stormwater rates were last adjusted in February 2009 and noted overlap between stormwater and sewer revenue needs; Pat emphasized the resolution concerns wastewater and stormwater utilities only and that landfill funds cannot be reallocated to sewer.

Under the district’s timeline, staff said the resolution will be scheduled for first reading by Richmond Common Council on Aug. 4, with a public hearing and second reading on Aug. 18; adoption into ordinance form would be at council’s discretion thereafter. The presentation materials referenced a draft ordinance number in the transcript (the ordinance number was noted in discussion but not finalized). The board approved the resolution by voice vote; no roll‑call tally was given in the meeting transcript.

The board and consultants emphasized that the rate changes are intended to fund immediate design and construction to avoid blocking marketing or committed industry plans for the industrial park, to cover increased operating costs (including salary adjustments and other plant operating costs), and to accumulate capital to reduce borrowing needs for later phases.

The board’s action forwards the approved resolution to the Richmond Common Council, which must consider the related ordinance and hold the public hearings required under local procedure before any rate increases take legal effect.