Water: A Tale Of Two Cities

This past month, the Richmond Times Dispatch featured some interesting editorial back and forth about Norfolk’s tax policies.

Why not also compare the water/sewer rate structure of Richmond and Norfolk?

Richmond water/sewer customers must pay $29 monthly just to be connected to the water supply, but there is no comparable service charge in Norfolk. Though their volume charge is slightly higher, the customer’s bill in Norfolk is directly correlated to the amount of water used. By contrast, Richmond water/sewer customers who conserve water are actually subsidizing those who waste water because of the high base service charge. A Richmond customer who uses 1 unit of water/sewer service monthly (748 gallons) will pay $39.05 monthly, which is over three times what a Norfolk customer pays for 1 unit of service.

Additionally, Richmond water/sewer customers are unjustly slapped with a charge in lieu of federal income tax on every unit of water, but customers in Norfolk do not pay a federal income tax surcharge on their water bills. While the Richmond utilities are authorized to charge the customers a payment in lieu of taxes that a private business would pay to the city, there is no business that pays federal income tax to the city. Altogether the city water/sewer customers are gouged around $5 million annually on their water bills in lieu of federal income tax, and this is the most regressive means of raising general funds revenue for the city. This is especially egregious, given that the City of Richmond sells water to the surrounding counties, who in turn, charge their citizens less.

Let’s learn from Norfolk’s fair water/sewer rate structure that rewards conservation and does not unjustly add a federal income tax surcharge onto the water bill. This should also be a campaign issue for our City and General Assembly political candidates.

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