Petersburg assembly hears utility rate study; wastewater plan proposes 25% increase in 2026

PETERSBURG, Alaska — Petersburg Borough staff and consultants presented a long-term financial model for the borough’s utilities at the assembly’s May 5 meeting, warning that the water, wastewater and electric funds will face growing funding gaps without rate adjustments and that immediate steps will be needed to meet new regulatory and operating costs.

Ari, client success team, Waterworth, the consultant that built the borough’s “live” rate models, told the assembly the modeling tool shows how operating costs, debt service and capital projects stack together and affect cash reserves. “I do wanna clarify that my role here today is not to advise you on what to do,” Ari said, adding the dashboards are intended to “facilitate the conversations” about possible rate options.

Water: code requires 3% for FY26

Chris (staff member) told the assembly that the borough’s code already includes a 3% rate increase for the water department in FY2026. “We have currently in our code a 3% increase for the water department for FY '26,” Chris said. Waterworth’s baseline shows the water fund’s cash position trending lower over the 2030s under current assumptions; the model uses 3% annual inflation on expenses and assumes some external funding for specific capital projects. Staff presented scenarios that would extend the fund’s solvency, including an approach of small, steady percentage increases (for example a continuing 3% each year)…