Mayor Avula says utility rates could increase for long-term fixes at water treatment plant

RICHMOND, Va. (WRIC) — Richmonders could be fronting the bill for long term fixes at the water treatment plant.

Richmond’s widespread water crisis has become a turning point for City Hall, exposing long-standing issues with transparency and accelerating overdue improvements at the city’s water treatment plant.

The Department of Public Utilities Director Scott Morris said funding remains the biggest challenge.

“When we start talking about not getting the funding and getting the funding, it's going to be a very difficult conversation about prioritization of which projects come to fruition sooner versus later,” Morris said.

In a letter to Gov. Glenn Youngkin, Mayor Danny Avula requested $80 million over the next two years to upgrade the physical layout of the facility.

One proposed improvement would move pumps, filters and other critical infrastructure from the basement to ground level. Those components were previously located in areas that flooded after a winter storm caused a power outage.

Planned upgrades include $31.3 million for filter replacements and $2.5 million for electrical improvements. With federal funding decreasing, city leaders said residents could ultimately bear the cost through higher utility rates.

"What we're trying to do is to protect the ratepayers from what invariably will be increasing costs of utilities over the next decade,” Avula said.

In a press conference on Monday, Jan. 5, Avula explained that every one percent increase in rates would allow the city to borrow an additional $10 million dollars per year. A four percent increase sustained over ten years could generate as much as $400 million for capital investments.

Although the funding was not included in Youngkin’s proposed budget, city leaders hope Governor-elect Abigail Spanberger will support the request. Avula said securing more state funding would help stabilize rates while addressing affordability concerns facing Richmond residents.

In December, Sen. Tim Kaine (D-Va.) talked about a five-year infrastructure bill which includes funding for Richmond’s wastewater and drinking water. The bill is set to expire by the end of November and Kaine is working with colleagues to make sure it stays afloat.