Politics
Richmond City Council Passes Ordinance 2026-12 Capping Utility Rate Increases for Households
The July 7 vote sets a 3 percent limit on water and sewer rate growth for the coming fiscal year, directly shaping monthly bills for city residents.
How we reported this
Richmond City Council passed Ordinance 2026-12 on July 7 by a 7-2 margin, establishing a 3 percent annual cap on residential water and sewer rate increases for fiscal year 2027. The measure applies to all single-family homes and multi-unit buildings served by the city utility department.
Local budget pressures have grown since the 2025 fiscal year, when the city recorded a 4.8 percent rise in operating costs for its water treatment facilities according to the adopted budget papers. Council members reviewed those figures during the regular session at City Hall before finalizing the cap.
Effects on Monthly Resident Payments
Under the new limit a household consuming 5,000 gallons of water each month would see its combined water and sewer charge rise by no more than 3 percent, or roughly $2.40 on an average bill of $80. The cap replaces an earlier proposal that would have allowed a 5.5 percent adjustment starting October 1.
City records show that utility fees represent about 2.1 percent of median household income in the 23220 and 23221 zip codes. Residents who heat homes with natural gas will continue to pay separate provider rates not covered by the ordinance.
Next Steps and Implementation Timeline
The ordinance takes effect with the first billing cycle after October 1, 2026. The city utility department will publish updated rate tables on its website by August 15 and mail notices to all account holders before the October deadline. Staff will present a compliance report to council in January 2027 using actual consumption data from the fourth quarter of 2026.