Chesterfield County proposes modest FY26 utilities rate increase to fund $1.7 billion 10‑year capital plan

Chesterfield County utilities directors presented the fiscal year 2026 operating budget, a 10‑year capital improvement program and proposed rate changes during a Board of Supervisors meeting, citing major projects and rising operating costs as drivers for modest rate increases.

The Department of Utilities is proposing a FY26 operating budget of $105,100,000, an increase of $1,000,000 (under 1%) from the current year, and a 10‑year capital improvement program (CIP) totaling approximately $1,700,000,000. George Hayes, director of the Department of Utilities, said the CIP focuses on pipes, pump stations, tanks, and required payments to the City of Richmond as well as additional supply and treatment capacity as existing facilities near permitted limits.

Hayes said the department requests one new administrative secretary position and is mirroring the general fund’s merit increases. Personnel costs are proposed at $34,100,000 (a $1,200,000 increase). Operating costs are the largest component at $66,600,000, driven in part by higher chemical costs at water and wastewater facilities; operating capital outlay is proposed to decrease by $1,000,000. “We are one of only nine water and wastewater utilities in the nation that have a AAA bond rating,” Hayes said, noting the county’s financial policies and reserves.

Why it matters: the CIP and operating increases will affect rates and connection fees paid by both existing and future customers. County staff said the projects take years to design and build, so the utility seeks steady, predictable revenue increases rather than large, sudden jumps when construction is required.

Major projects and schedule: Hayes highlighted three large capital efforts. The Appomattox River Water Treatment Plant would create the county’s fourth raw water supply.…