Assembly approves 30% water rate hike; will show up in June bills

The borough assembly has approved a 30% boost to water rates effective May 1 instead of a 21% rate hike with additional smaller, staggered increases until 2026 originally suggested by staff.

The assembly approved the increase April 26 after it postponed a decision on the 21% rate increase at its March 22 meeting. Several assembly members including Patty Gilbert said they had wanted to hear more public comment on the issue.

At the April 26 meeting where the 30% increase was approved, no one from the public showed up to speak on the issue.

Assemblymember David Powell, who had amended the original resolution in favor of the 30% hike, on April 26 said his motivation for going for a larger one-time increase as opposed to the incremental rate increases over several years was not because he doesn’t trust future assemblies, but because he didn’t think it was fair to lay the burden on them to pull up rates to where they should be now.

The original proposal had called for annual rate hikes of 5%, 3%, 2% and 2% through July 2026, following a 21% increase this spring.

Water rates last increased in 2019.

The rate hike, which is intended to help pay the financing costs of water treatment plant improvements, will start showing up in utility bills sent out in June.

The residential rate for unmetered water service will increase by $14.15 from $47.15 to $61.30 a month. The metered residential water rate goes up to $40.25 per month from $30.96, a $9.29 increase, plus water use charges by volume.

The assembly on March 22 approved a multiyear fee increase in sewage services, effective May 1 as well. This year’s 21% hike in sewage rates will take the monthly fee for a single-family residence from $40.74 to $49.30. Further annual rate increases of 5%, 3%, 2% and 2% will continue through 2026.

Wrangell is not alone in utility rate increases this spring. Petersburg currently charges $40.40 a month for residential sewage services, and on April 18 its borough assembly voted to increase rates for water and sewage by 3% each year for the next four years beginning this summer, according to the Petersburg Pilot.

Petersburg doesn’t have an unmetered water rate, Utility Director Karl Hagerman said Friday. Residential metered will go up to $36.37 from $35.31, a $1.16 increase in the base charge. The residential sewage charge goes up to $41.61.