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Richmond council approves phased water rate increases and moves forward on new well plan
Summary
The Richmond City Council approved a five-year plan to raise the culinary water base rate by $1 per year and discussed a new test and production well estimated at roughly $4.45 million in combined costs, while confirming surcharges for high-volume usage and reliance on impact fees for major infrastructure.
The Richmond City Council on June 16 approved Ordinance 2026-06, establishing a five-year culinary water rate increase that raises the base monthly charge from $65 to $70 for 0–10,000 gallons and keeps tiered surcharges for very high usage.
Justin B. Lewis, City Recorder, said the council will increase the base rate $1 per month each year from July 1, 2026, through 2030 and maintain surcharges for usage above 10,000 gallons. Lewis told the council the city plans a test well estimated at $150,000 and a production well and related infrastructure estimated at about $4,300,000; an 8-inch pressure-reducing station near 800 South 100 East was estimated at $350,000.
Mayor Jeff Young said the council seeks to “carefully balance costs among current residents, future residents, and system needs,” favoring smaller, gradual increases rather than a single large jump. During the public hearing, resident Martin Rigby asked whether the city had completed a formal cost-of-service rate study; Lewis said no such study was commissioned because staff and council determined the improvements would not be bonded. Terrie Wierenga asked how bond payments on the existing well would affect the new project; Lewis said the city intends to proceed without issuing a new bond and noted the city currently owes about $2,094,179 on the existing bond.
Councilmembers voted 4-0 to adopt Ordinance 2026-06. The ordinance sets the new monthly base-rate schedule and keeps the existing surcharge structure: $1.00 per 1,000 gallons for 10,001–100,000 gallons and $2.00 per 1,000 gallons above that threshold.
The council and staff said impact fees will be used to help fund the production well and pressure-reducing station but not the test well. The city will not change the tiered rate structure. Next steps include finalizing project scoping and financing and returning to council when construction-level decisions are required.
