Talkeetna water system in financial trouble

PALMER - What is Talkeetna going to do about its water supply?

The Mat-Su Borough Assembly is looking for options, one of which it has rejected.

"This is a huge rate increase under this ordinance. I am going to ask the assembly to vote it down," said Assemblyman Vern Halter, who represents Talkeetna and other areas in the northern reaches of the borough.

The problem is that the Talkeetna system is $100,000 in debt, but only has operating costs of $120,000.

"It would not be possible to reduce expenses of $100,000 from the operating budget and still operate the utility," an ordinance considered recently states plainly.

The ordinance called for something on the order of a 10 percent rate hike, followed by 2.5 percent increases annually. The borough estimates those increases could put the system in the black by 2015.

Rates under the old system are $41.45 for residential customers and $79.62 for commercial customers. The hike would put those up to $63.45 and $101.75 respectively.

Halter said those plans were causing some unrest in Talkeetna, where only 188 people are hooked into the system.

"In the summer there's in the neighborhood of 1,500 to 2,000-2,500 tourists coming and using the facilities," Halter said.

So what's the solution?

Halter said he's exploring a few. He's talking with his local state senator, Charlie Huggins, about a grant possibility. He's talking to the borough about paying down some of those debts. He said property taxes in Talkeetna are already among the highest in the borough, so there's probably not a lot of room to grow there.

And, Halter said, he's eyeing revenue from the borough's bed tax.

"The people of Talkeetna pay a tremendous amount of bed tax," he said.

Assemblyman Ron Arvin said he liked that idea, given that the bulk of the system's usage comes from those same tourists who pay those taxes.

"I think that's a reasonable thing to do. I'd look forward to seeing that, Mr. Halter," he said.

The assembly agreed with Halter and shot the ordinance down, with Halter promising to come back with a different solution to the problem.

"When do you anticipate bringing legislation back?" Assemblyman Warren Keogh asked.

"As soon as the manager wants to quit paying for it out of his own (budget)," Borough Mayor Larry DeVilbiss quipped.

"That'd be tomorrow," Borough Manager John Moosey replied.

Contact Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.