AlexRenew is proposing a $258.3 million budget for fiscal year 2026, along with a two-year rate adjustment to fund ongoing infrastructure investments, including the RiverRenew program.
The wastewater treatment authority plans a 5.0% rate increase beginning July 1, 2025, followed by a 5.7% increase starting July 1, 2026. For the average residential customer using 4,000 gallons of water monthly, this translates to approximately $2.76 more per month in the first year and an additional $3.31 per month in the second year.
The AlexRenew Board of Directors unanimously approved the proposed budget and rate adjustment for public notice on April 15. A public hearing is scheduled for Saturday, May 17, 2025, at 9:30 a.m. to review the proposal and receive public comment.
“AlexRenew is proposing a two-year rate adjustment to help fund the mandated RiverRenew program and support upgrades at our treatment facility to purify wastewater 24/7/365,” the authority states in its public materials.
The FY2026 budget represents an 11.0% increase compared to the prior year, with approximately 76% of the proposed expenses funding anticipated capital outlay. Capital outlay is projected at $197.2 million, with $96.0 million supporting the ongoing RiverRenew program, which is scheduled for completion in 2026.
RiverRenew, described as “the largest infrastructure project in Alexandria’s history,” will prevent millions of gallons of combined sewage from polluting the Potomac River, Hunting Creek, and Hooffs Run each year. The total program cost is $615 million, with approximately $500 million spent to date.
The proposed budget also includes significant investments in AlexRenew’s PhaseForward program, which encompasses major upgrades to critical wastewater processes. This program includes four major projects:
– Biosolids Diversification Program ($25.2 million in FY2026): Upgrades to meet emerging regulations, increase bioenergy production, and realize alternative beneficial end uses for biosolids.
– Headworks Renewal ($20.7 million in FY2026): Improvements to aging equipment that provides initial screening of debris and settling for solids, along with new pumping systems.
– Nutrient Reduction ($2.5 million in FY2026): Rehabilitation of processes providing final settling and filtration of wastewater to further reduce nutrient loads.
– Process Optimization ($5.0 million in FY2026): Installation of new equipment to enhance nutrient removal processes and improve water quality.
The PhaseForward and RiverRenew programs account for just over 75% of all capital expenses in the proposed budget.
Operating expenses, which include a transfer to reserves, are proposed at $40.9 million, representing a 16.0% year-over-year increase. This increase is largely driven by a 6.5% investment in total personnel costs due to the addition of staff and a 16.1% year-over-year increase in chemicals due to rising costs.
The budget includes the addition of five maintenance apprentices to provide knowledge transfer as senior staff retire, plus an asset manager and technical trainer to support ongoing initiatives. The increase also includes a $2.5 million transfer to reserves to account for unforeseen events and emergencies.
For residential customers, the base charge will increase from $14.57 to $15.29 per month in FY2026 and to $16.16 in FY2027. The wastewater treatment charge will rise from $10.26 to $10.77 per 1,000 gallons in FY2026 and to $11.38 in FY2027.
Commercial customers will see similar percentage increases, with the exact amount depending on their meter size. For example, a commercial customer with a 2-inch meter will see their base charge increase from $349.41 to $366.96 in FY2026 and to $387.84 in FY2027.
This marks the fourth two-year rate adjustment in support of RiverRenew, following increases implemented in fiscal years 2020-2021, 2022-2023, and 2024-2025. Future rate increases are anticipated through 2028 to pay for the program.
AlexRenew notes that the Commonwealth of Virginia has provided grants totaling $140 million for RiverRenew, which helped reduce the authority’s debt capacity and offset some rate increases to customers.
For customers who may struggle with bill payments, AlexRenew offers assistance through extended payment plans and the Lifeline Emergency Assistance Program (LEAP). Customers can contact customer service at 703-721-3500 or email [email protected] for assistance.
The public hearing on May 17 will be hosted on the 6th floor of AlexRenew’s administrative offices at 1800 Limerick Street in Alexandria. Members of the public can attend in person or access the hearing through a live broadcast. Written comments can be submitted via email to Lorna Huff, Board Executive Assistant.
AlexRenew treats approximately 13 billion gallons of wastewater annually from area homes, schools, and businesses in Alexandria and parts of Fairfax County before returning it safely to waterways.
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