Talkeetna water, sewer rates rising

June 10, 2005

DARRELL L. BREESE/Frontiersman reporter

TALKEETNA - After operating for 13 years without a rate increase, residents of Talkeetna who are connected to sewer and water service will see a 25-percent increase in their next bill and can expect another 25-percent increase in December.

The Talkeetna Sewer and Water Service Area board of supervisors requested a rate change in order to sustain the current level of services provided to residents of the Talkeetna area.

"The board wanted a flat 25-percent increase," Mat-Su Borough Assembly Member Betty Vehrs said. "Now I have to call them and let them know that there will also be another 25-percent rate hike and a 2-percent annual increase."

Vehrs was the lone member of the assembly to vote against approval of the rate increase Tuesday.

"I had my marching order from the board," Vehrs said. "So I stuck to my guns and voted against the change in rates."

The last rate increase for residential service came in 1992 and commercial rates increased in 1995. In November 2004, the board presented a request to the administration for an immediate 25-percent increase, but after reviewing the accounting for the service, the administration added the request for the additional 25 percent and the 2-percent annual increase until the current deficit is resolved.

The sewer and water service is operating in the red after two consecutive years of budget shortfalls.

There was a loss of $96,468 in fiscal year 2004 and a projected $110,995 shortfall for the current year.

"Even with the rate increase that was passed, it won't eliminate the budget shortfall this year," Assistant Borough Manager Marian Romano said. "Even with the increase rate, we are still projecting a shortfall in 2006 and possibly into 2007."

The need for increased fees is obvious, but Vehrs believed the board had worked out an option that would put less stress on those using the service.

"It's a huge jump in rates," she said. "It's a very big increase and big increases like that are scary to me."

Under the new rate structure, the cost of a residential hook-up for sewer will increase from $25 to $31.25 per month, water rates will also rise the same amount, during the first increase. In December, the rates will increase to more than $39.

The ordinance passed 5-1, with Vehrs voting in opposition. Assembly Member Bill Allen excused himself from the debate because he works for the U.S. Department of Agriculture and the borough is considering a request for a USDA grant.

Darrell Breese may be reached at 352-2267.