Juneau water and sewer bills go up 5 percent a year through 2030

Juneau households are partway through five straight years of 5 percent increases on their water and sewer bills. A typical combined monthly bill was $146.80 before last August. By July 2029 it is projected to reach $187.38, before sales tax. The schedule it replaced went up 2 percent a year.

The reason is that almost nobody else pays for the system. Juneau's water and wastewater utilities get no property tax revenue, and the Assembly rejected a proposed bond of up to $8 million last year that would have sent capital costs to voters instead. Voters did approve a $10 million utility bond in 2024, which is paying for work at the Juneau-Douglas plant.

The bills are going up while the system is behind. Juneau's main wastewater treatment plant has been out of compliance with federal clean-water rules for three years, and ratepayers are covering the cost of fixing that. The utility advisory board's annual report, still in draft, says "increased capital investments are required immediately for necessary maintenance and upgrades."

Two recent tax changes narrowed the options further. Voters lowered the city's property tax cap, and exempted food and utilities from the city sales tax, which keeps the 1 percent sales tax off the table for the utilities into 2029. City engineers expect 7 to 10 percent inflation across the six-year capital plan.

The system's margin showed in December, when record cold pushed daily demand from a typical 2.7 million gallons to more than 4 million, drawing down reservoirs and bursting pipes.

The rejected bond could come back to voters as soon as this summer. Whether they end up sharing the cost, or ratepayers carry it alone, is the open question.