Assembly approves 5.5% increase to Mountain Point sewer rate; monthly EDU charge rises from $54 to $57

The Ketchikan Gateway Borough Assembly on May 5 adopted ordinance 2069 to raise recurring wastewater charges for properties connected to the borough‑operated Mountain Point sewer system by 5.5 percent, increasing the monthly equivalent EDU charge from $54 to $57.

Public Works Director Morgan Berry said the increase addresses a projected operating deficit and positions the wastewater enterprise to absorb upcoming loan payments that had been delayed. Berry presented a multi‑year projection showing a small deficit under the current rate and a modest surplus if the 5.5% increase is adopted.

Berry explained the wastewater enterprise often runs higher labor and benefits costs than the water division because operators perform both water and wastewater tasks and the wastewater treatment plant requires more day‑to‑day maintenance. Berry said unfilled positions and restrained non‑essential spending have partially mitigated costs in recent years, but that the new rate will reduce the risk of a mid‑year deficit and limit the need for larger increases in the near term.

Assembly action: Assemblymember Matson moved adoption; seconded by Assemblymember Palmer. The vote was 4–2 with Arntzen and Thompson voting no and Matson, Palmer, Otis and Bailey voting yes. The ordinance will take effect for FY26 billing cycles and staff said subsequent years might require 2–3% annual adjustments to maintain stability.

Berry noted a $111,000 debt payment previously projected to fall in this fiscal year had been deferred one year; when that payment begins the enterprise will again face upward pressure on rates unless additional revenue or cost savings are identified.