Skagway water and sewer rates are set to increase.
Rates haven’t gone up since 2005. Right now, the revenue from the utilities doesn’t cover the cost of operation.
A study conducted in 2015 found rates need to be increased significantly to get to that point.
The assembly passed a resolution establishing rate increases at a meeting last week.
Assemblyman Orion Hanson said rate hikes aren’t unusual.
“Having your utility rates increase is a kind of normal thing throughout the country,” said Hanson. “This is not a radical concept. If we fast forward about five years, a single family residence would be paying an additional about $24. Not even $24 between water and sewer combined. It’s inflation. You have to keep paying a little bit more because the cost of living keeps going up. I think we’re all used to that.”
Assemblyman Tim Cochran is on the finance committee. He said this action won’t amount to a significant cost for residents.
“Resident single family it’s only a $3 increase each year,” said Cochran. “The wastewater, it’s $2. It’s nominal but it’s needed. We haven’t raised the rates since 2005. Cost of operations keeps going up. We’re subsidizing more and more every year in effect.”
For water charges, the resolution passed by the assembly implements a 5 percent increase, each year, through FY22.
Wastewater will increase 7 percent annually, through that same year.
