Sitka assembly reviews FY2026 enterprise fund rate proposals, discusses debt and asset repairs

City staff asked the Assembly of the City and Borough of Sitka on Feb. 4 for guidance on proposed FY2026 rate recommendations covering electric, water, wastewater, harbor and solid waste enterprise funds, and outlined major capital needs, debt decisions and equipment purchases that could affect rate payers.

In a presentation, a staff presenter identified as Melissa said the administration seeks the assembly—s guidance so staff can adjust revenue projections as they finalize the budget. "It's very ideal to get the guidance beforehand," Melissa said, noting staff had modeled operating and capital expenditures over 10 years and was recommending a three-year baseline. She described general assumptions: a 3.0–3.5% increase for operating expenses (3.5% applying to solid waste), a 5% increase for construction costs and targeted rate changes meant to preserve working capital and meet debt and covenant obligations.

Why it matters: enterprise funds pay for ongoing services used by residents and businesses; changes to rates shift costs directly to utility customers and affect the City and Borough's ability to fund long-lived infrastructure, debt service and emergency repairs.

Electric: staff proposed a 2% per-kilowatt-hour increase for FY26, continuing through FY28 in the model, and a phased increase to the base customer fee that staff said will generate "a couple…