The borough assembly has postponed for the second time a decision on a proposed increase in water rates, and is now considering a 30% boost instead of the 21% rate hike originally suggested by staff.
The assembly last month delayed a decision on the 21% rate increase after several members said they wanted to hear more public comment on the issue.
At the April 12 assembly meeting, Assemblymember David Powell said he doesn’t put much stock in future assemblies honoring the incremental rate increases over several years included in the original proposal. To ensure adequate funding for the water services budget, which is supposed to be self-supporting, he proposed amending the ordinance to apply a 30% increase this year, without the staggered increases.
After a 21% increase this spring, the original proposed ordinance had called for annual rate hikes of 5%, 3%, 2% and 2% through July 2026.
Water rates last increased in 2019.
The assembly on March 22 approved a staggered fee increase in sewage services, effective in May. This year’s 21% hike in sewage rates will take the monthly fee for a single-family residence from $40.74 to $49.30.
The rate increases will allow the department to start saving for anticipated changes in state and federal requirements for treating sewage and wastewater. The state and federal governments “are very likely to require disinfection” of outflows from Wrangell’s sewage system, Public Works Director Tom Wetor wrote in a report for the assembly last month.
Such an upgrade could cost several million dollars.
“Secondary treatment also seems to be a realistic requirement as well,” borough staff reported to the assembly.
Powell said in addition to being spread apart and taking too long, the proposed fee increase for water services starting with 21% isn’t enough. He cited a letter from Chamber of Commerce Executive Director Brittani Robbins, which she submitted as part of the public comment on the ordinance.
“The change in fees needs to happen, and honestly it needs to happen at a more aggressive rate than what has been proposed,” Robbins wrote to the assembly. “While I understand the concern for community members with everything else rising, if we don’t start accruing in the places needed, Wrangell will either be in massive debt to loan companies or Wrangell will just simply fall apart.”
A 30% increase in water rates will be discussed at the April 26 assembly meeting.
If adopted by the assembly at 30%, the residential rate for unmetered water service would increase by $14.15 to $61.30 a month.
The previous suggested increase would have raised unmetered water $9.90 a month, from $47.15 to $57.05 in May, rising in each of the next four years to $64.19 on July 1, 2026.
The proposed gradual increases would not provide any cushion for the unforeseen, Robbins said.
“Wrangell has been fortunate, and for lack of a better word, spoiled,” she wrote. “We have managed to squeeze by with low rates, low increases, understaffing, and ‘cushioning the blow’ for far too many years. If you look at the communities around us, we are nowhere near the rates they charge. This is not fruitful for the city or the community.”
Ketchikan’s water rate is $63.26 per residence, after a fee increase this month. The rates in Petersburg, Juneau, Sitka and Haines range in the $40 and $50 per month. Anchorage is closer to $60.
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