Question: Have we considered phasing in the Sanitary Sewer rate increase forecasted for FY 2028? What would it look if rate increase was split over multiple years to avoid a large increase in FY28 for residents?
Response:
Staff considered a variety of funding scenarios and rate increase schedules while developing the proposal to address the City’s wastewater capacity needs through a capacity purchase from Fairfax County.
The Sanitary Sewer Maintenance Fee increase projected for FY 2028 will take the rate per 1,000 gallons from the current $2.28 per 1,000 gallons to $2.49 per 1,000 gallons. This is a percentage increase of 9.2%, however nominally this is a 21-cent increase in the rate. For the average homeowner in Alexandria, this equates to a $0.84 increase in monthly costs, or $10.08 annually.
Staff ultimately recommended scheduling the rate increase fully in FY 2028, as smoothing the rate increase over multiple years would have only had a marginal impact on Sanitary Sewer bills.