The City and Borough of Juneau’s Utilities Division announced a proposal on Tuesday to increase resident’s water and sewer rates by more than 50% over the next five years.
Juneau’s utility rates have gone up 2% each year since 2020. The last time rates were increased was in July. But, according to the division’s website, those increases have fallen short of what’s recommended by studies and left the division in a revenue deficit.
The proposal comes as a lot of the water and sewer systems’ infrastructure reaches the end of its lifespan and maintenance becomes more costly.
The division says raising rates now will allow the city to invest in critical repairs and replacements so the systems can continue to operate in the coming decades.
The division proposes increasing the flat residential water rate by 10.25% starting next July. Then, the rate will increase that amount again each July until 2029. The proposed sewer increase is similar at between 12-13% each year.
In total, that’s a more than 50% increase for both bills in just five years. The division indicated the increase could have been worse.
Juneau residents voted this October to approve a wastewater bond to borrow $10 million to replace critical infrastructure at the Juneau Douglas Wastewater Treatment Plant.
City leaders said at the time the rate increase could have been higher if the bond didn’t pass.
The Juneau Assembly will ultimately decide whether or not to increase rates.
The division is set to host an open house for people to learn more and ask questions about proposed increases on Thursday from 6-8 p.m. at the Thunder Mountain Middle School Library.