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Richmond commission opts to carry 95% usage assumption into FY26 budget review
Summary
Commissioners directed staff to carry a 95% billed-usage recovery assumption into the FY26 budget and rates presentation at the upcoming annual meeting, citing commercial closures and leak detection as reasons; staff said metered rates would rise about $0.50 per unit under that scenario.
The Richmond Water and Sewer Commission agreed on May 19 to carry a 95% billed-usage recovery assumption into the final Fiscal Year 2026 budget and rates review at the commission’s annual meeting.
Staff presented two rate models — one assuming 98% recovery and a second assuming 95% — showing that fixed charges would remain unchanged while metered charges would rise roughly $0.50 per unit across residential, commercial and government categories under the 95% scenario. Superintendent staff described factors supporting the lower assumption, including two temporarily closed commercial accounts and improved leak detection that has reduced billed usage in recent reports.
The decision evolved from a discussion among commissioners rather than a formal motion. Commissioner Bard said he was "inclined personally to go to the 95 and just say that seems the prudent thing to do," and another commissioner summarized the uncertainty by saying the choice felt like "choosing between one crap shoot and another crap shoot." Commissioner David said he was "comfortable with 95." Staff will present the 95% scenario at the annual meeting for final adoption.
Commissioners were briefed on the expected customer impacts: residential metered charges would see incremental increases (metered water and sewer numbers discussed by staff), and staff noted that year-over-year residential sewer charges under a 95% assumption could show roughly a 10% increase depending on the final rate structure. The commission did not set final rates; it instructed staff to use 95% as the working assumption for the annual meeting packet and public presentation.
The annual meeting will include a consumer confidence report, a logo discussion and a public review of the proposed budget and rates; staff and commissioners discussed expanding the annual meeting agenda description to encourage public attendance and make the potential increases transparent.
Next steps: staff will finalize the FY26 packet and present the 95%-based rates at the annual meeting two weeks later for formal approval.
