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Staff proposes phased sewer increases and a larger stormwater adjustment to fund wastewater plant projects
Summary
Utility staff proposed a rate strategy to fund near-term wastewater capital work including a planned anaerobic digester. Recommended actions include sewer increases of about 6% per year for three years and a separate stormwater adjustment; staff will present ordinances after Utility Advisory Committee review, with new rates proposed effective July 2026.
City staff presented a revenue-requirement rate study for sewer and stormwater fees and recommended a three-year rate-setting approach to support essential wastewater plant projects and reserve targets.
What was proposed: For sanitary sewer, staff proposed about 6% increases each year for 2026–2028, which staff estimated would equate to roughly $1.50–$1.75 per month on an average residential bill. For stormwater, staff described a larger near-term increase (a scenario shown as 36% in the study) that would translate to about $1.39 per month for a typical residential account; staff framed the stormwater increase as addressing collection-system rehab and vegetation management work.
Why it’s needed: The utility capital forecast includes several large wastewater projects, notably an $11 million anaerobic digester rehabilitation and other solids-handling improvements. Staff said rates have not been materially changed since 2009 for sewer/stormwater and 2013 for solid waste, and the proposed increases are intended to avoid deferred maintenance and maintain credit-worthiness for future debt.
Council guidance and public messaging: Council members emphasized the need for clear public communication explaining that increases fund end-of-life, essential projects and that Richland’s rates remain below regional comparators even after the proposed adjustments. Staff will take the strategy to the Utility Advisory Committee in March and return to council with ordinances for possible adoption and a target effective date of July 2026.
Next steps: Staff to incorporate council and UAC feedback, finalize the rate ordinance language and return to council for a vote in March (with effective dates in July if adopted). No final rate ordinance was adopted at the workshop.
