Utility rate hikes and more money into affordable housing from 2026 fiscal year budget proposal
Mar 28, 2025
RICHMOND, Va. (WRIC) — Richmond residents could be paying more for gas, sewer and water bills if the city's 2026 fiscal year proposed budget is approved.
On Thursday, March 27, Mayor Danny Avula presented his plans to the city council, including potential utility rate hikes.
This means the avera
ge Richmond resident could see an increase of $12.83 a month in utilities.
Avula said these utility rate hikes were proposed prior to the January water crisis. but explained that incident makes it more clear why the city needs a 5-year plan to invest in upgrades to gas, water, sewer and stormwater utilities.
“I understand that any increase affects household budgets, but these adjustments will help ensure that when you turn on your tap or cut on your heat, that the service is there and working properly,” Avula said.
According to the proposal, the gas utility will invest more than $200 million to replace leaky pipes. The water utility is investing more than $262 million in water distribution systems and upgrades to the water plant and pumping systems. The wastewater utility will invest $490 million in plant operation upgrades and aging sewer pipes.
Lastly, the stormwater utility will address chronic flooding areas without a stormwater conveyance system, with a $205 million investment.
“While building for our future, we must also maintain the essential infrastructure systems that serve every Richmond resident every day,” Avula said.
On a positive note, the city will continue pouring into affordable housing projects like the Creighton Court Redevelopment project, led by the Richmond Redevelopment and Housing Authority, which is set to deliver 246 affordable housing units.
The project would receive $7.9 million in additional funds, bringing the total investment to $19.7 million.
The city is also adding more than $6.8 million to support 3,316 more affordable housing units across the city. In addition, officials are adding more eviction protection resources with a $1.3 million investment. ...read more read less