Juneau residents wary of proposed utility rate hikes down the pipe

Municipal utility staff say they need to raise Juneau residents’ water and sewer rates by roughly 50% over the next five years to address critical infrastructure repairs. 

At an informational meeting at Thunder Mountain Middle School Thursday evening, residents reacted to the news. Jesse Hay, a Mendenhall Valley resident, said he understood the need for repairs, but he’s disappointed with the city’s overall approach to spending. 

“The utilities are definitely a requirement. But I think people just get frustrated that every time we turn around, the city’s asking for more and more,” he said. “The residents are just kind of getting tired of it because it’s getting too damn expensive to live here.”

Juneau’s utility rates have gone up 2% each year since 2020. The last time rates were increased was this summer. 

Now, the division proposes increasing the flat residential water rate by 10.25% starting next July. Then, another 10.25% each July until 2029. The proposed sewer increase is between 12 to 13% each year. 

At the meeting, city staff said it could have been much higher. In October, Juneau voters approved a wastewater bond to borrow $10 million to replace critical infrastructure at the Juneau Douglas Wastewater Treatment Plant. 

Alan Steffert with the Engineering and Public Works department said the bond helped shave off a significant amount of repair costs – but there are still a lot of upgrades that need to happen beyond that. 

“We’re actively replacing our infrastructure, be it wastewater or water, be it treatment, be it collections, be it distribution,” he said. “There’s no end of products or projects we can spend on and it’s a matter of prioritizing.”

Some residents, like Shawn Lovell, wanted to know how much cruise ship traffic takes a toll on the city’s wastewater infrastructure, and if residents will be the only ones paying if rates increase.

“How much are we actually getting from the cruise industry to offset that? Because it seems like we, as the locals, are the ones that are footing that excess bill, where maybe a little bit more should be twisted or pushed on to help them pay for it,” he said.

His comments, and many others from residents who attended the meeting, will be passed on to the Juneau Assembly. Residents may also submit comments about the proposals online. The Assembly will vote on the rate proposal before July.