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Council approves staged sewer-rate increases to fund long-term MBR plant upgrades
Summary
Richmond adopted a five-year sewer base-rate increase to prepare for roughly $9 million in planned Membrane Bioreactor plant upgrades, discussed available Water Quality Board funding and impact-fee use, and heard resident questions about capacity and system lifespan.
The Richmond City Council on June 16 adopted Ordinance 2026-07, authorizing a $2-per-month annual increase to the sanitary sewer base rate over five years to build reserves for planned Membrane Bioreactor (MBR) plant upgrades.
Justin B. Lewis, City Recorder, described the increase as a five-year schedule raising the base sewer rate from $83 per month on July 1, 2026, to $91 per month by July 1, 2030. Officials said the MBR plant renovation and improvement estimate is approximately $9 million; the city has pursued Water Quality Board funding, including an offer of $1.7 million in principal forgiveness plus a $6.25 million loan at roughly 1.2% interest.
Councilmember Joel Draxler described engineering recommendations and stressed that parts for the older plant are becoming obsolete. Draxler said portions of the system are “Version 1” and replacements are no longer manufactured, increasing the urgency to plan upgrades. Residents during the hearing asked for a lay explanation of the need and whether the system was at capacity; councilmembers explained the upgrades address capacity, regulatory redundancy requirements and long-term reliability rather than immediate failure.
Council adopted Ordinance 2026-07 by a 4-0 vote. Councilmembers noted the current MBR bond balance is about $588,000 and is expected to be paid off in roughly three years; the city estimates it will need approximately $1.3 million in cash for initial work alongside loan proceeds and impact fees.
Staff will continue engineering work and pursue the Water Quality Board funding and other financing options; project phasing and construction timelines were described as multi-year and contingent on final funding decisions.
