A 21% increase in sewage rates will take effect in May, adding about $8.50 a month to a residential utility bill. The borough has not raised the rate since 2015 and anticipates costly upgrades will be needed to the community’s sewage treatment system to meet state and federal standards.
The assembly unanimously approved the increase at its March 22 meeting. Though a similar rate hike for water service was on the agenda, the assembly postponed action and set another public hearing on the issue for April 12.
In addition to the 21% boost in sewage service rates starting in May — from $40.74 to $49.30 a month — the assembly approved further increases of 5%, 3%, 2% and 2% each over the next four years.
The cumulative effect of the increases will boost the monthly sewage utility rate to $55.47 starting July 1, 2026.
Other users, such as bars, bakeries and restaurants up to 30 seats will see their monthly rate go from $122.26 to $147.93 in May, then moving up to $166.45 in 2026.
Public Works Director Tom Wetor said 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 Department of Environmental Conservation and federal Environmental Protection Agency “are very likely to require disinfection” of outflows from Wrangell’s sewage system, Wetor and Finance Director Mason Villarma wrote in a report for the assembly.
“Secondary treatment also seems to be a realistic requirement as well,” they wrote.
Such upgrades could run into the millions of dollars, or more.
Wetor told the assembly that other potential expenses facing the sewage budget include removing sludge from settling ponds, replacing the 20-year-old vacuum truck that clears grease from sewer stations, and future commercial development of the former sawmill site that would require installation of a lift station to move sewage into the collection system.
“We have never dewatered our (wastewater) ponds and removed the sludge despite that being a condition of our permit. We may be mandated to do this soon,” at an estimated cost of $100,000, Wetor reported to the assembly.
Borough Manager Jeff Good said most of the borough’s enterprise funds have languished. Those funds, such as the sewage and water utilities, are intended to be self-supporting from user fees.
“Our enterprise funds are run like a business, so they have to be self-sufficient,” he said, instead of dipping into the general fund. “We haven’t built up our maintenance budgets.”
No members of the public testified on sewage rates at the March 22 assembly meeting, nor on the proposed increase in water rates, which would be the same 21%, 5%, 3%, 2% and 2% hikes through July 2026.
If later adopted by the assembly, the residential rate for unmetered water service would increase by $9.90 a month, from $47.15 to $57.05 in May, rising to $64.19 on July 1, 2026. Commercial rates and other accounts would increase by the same percentages.
“When we decided to raise rates, we put a stipulation that we want public input, so that the public understands,” Councilmember Patty Gilbert said during discussion of the proposed water rate hike.
Water rates last went up three years ago on July 1, 2019.
The proposed increase would help cover financing costs of an existing loan balance of $3.82 million for the water treatment plant. Any surplus funds from the higher rates would be saved “for other large projects coming down the line (dam maintenance/replacement, water main overhauls, reservoir bypass completion),” according to the report prepared by Wetor and Villarma.
Gilbert suggested perhaps the water and sewage rate increases could be smoothed out.
“I have the same heartburn for the public (as I did with water rates),” Gilbert said of the sewage rate hike. “A $102 increase over the year, just this first year … I’m suggesting we level it out.”
Instead of increases of 21%, 5%, 3%, 2% and 2%, Gilbert suggested maybe 10% and 10% the first two years.
“I understand we need the money, but with inflation I don’t want to see the ratepayer pay the price for us being negligent for seven years,” Gilbert said of the long period when the borough did not raise sewage rates.
Mayor Steve Prysunka said he “appreciates that it’s hard, but at some point we’re going to reach catastrophic failure.”
He also mentioned the borough assembly gave “clear direction” to Villarma that it wanted to increase rates.
Good said the utility departments need to build up funds, explaining “most grants have a co-pay.”
The more the borough is able to meet matching requirements for grants, he said, the less it might have to rely on loans.
Wetor said the assembly in 2011 conducted a rate study and went with a lower sewage rate knowing it wouldn’t be enough to cover costs at the time.
Assemblymember Anne Morrison said the assembly “needs to face the fact that it didn’t happen, and that it needs to happen.”
Members Bob Dalrymple and Ryan Howe, who had phoned in for the meeting, said they wanted to move forward.
The assembly voted to approve and adopt the sewage rate schedule. The rate schedule for water service will be considered at the April 12 assembly meeting.
“People have to show up,” Prysunka said during discussion of the water rates. “They have to take an interest, but we have to get something moving.”
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