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Richmond commissioners debate septage volumes and possible rate increases in FY2027 draft budget
Summary
During the June 1 meeting commissioners reviewed draft FY2027 budget materials and septage revenue charts, discussed a 2023 change to measurement/charging practices that reduced reported volumes, and asked staff to model lower septage volume assumptions and modest rate increases (3–4%).
Commissioners on the Richmond Water & Sewer Commission spent a substantial portion of their June 1 meeting reviewing the draft fiscal year 2027 budget and attendant charts showing septage volumes and revenues.
A staff member explained that in 2023 the town changed how it records septage hauler deliveries: instead of rounding hauler‑reported loads up to the next thousand gallons, the commission moved to charging the actual hauler‑reported volume and began spot‑checking deliveries. That change, combined with an anomalous COVID‑era spike when Richmond was one of the few septage receiving sites in the state, alters the historical comparators commissioners use when setting budgeted volume assumptions.
Commissioners said recent actuals for septage volumes have been lower than earlier budgeted figures and suggested more conservative assumptions for next year. Several commissioners proposed modeling budget scenarios with septage volumes in the 425,000–475,000 gallons range and noted that incremental rate increases (on the order of 3–4% per year) are often preferable to infrequent larger hikes to avoid bill shocks for haulers and customers.
Commissioners also discussed how any drop in septage revenue would affect capital reserves; staff noted that a flatlined budget would still allow a planned capital reserve contribution (roughly $59,000 this year), but a lower septage projection would reduce that contribution and commissioners asked staff to show the revenue and reserve effects of alternate septage assumptions.
Next steps: staff agreed to run rate and volume scenarios for the next meeting and include revised septage assumptions and potential rate changes in the FY2027 budget materials for further consideration at the commission’s upcoming meetings.
