By ARIADNE WILL
Sentinel Staff Writer
The Assembly voted unanimously at a special meeting Tuesday in favor of a 8.3 percent increase in harbor moorage fees.
The meeting was held to discuss and review rate increases and capital projects as a part of the fiscal year 2023 budget process.
At a previous meeting the Assembly had settled on a 6.3 percent harbor rate increase, but voted to raise it to 8.3 percent on the recommendation of the Port and Harbors Commission.
Harbor Master Stan Eliason told the Assembly that the commission is hoping that this substantial increase will allow for a steadier rate of increases in future years.
The 8.3 percent increase would raise the charge by $39.70 per quarter for a 40-foot boat.
With the 8.3 percent rate hike, the harbor fund will still see only about $55,000 in annual revenue. Finance Director Melissa Haley said the fund has been affected by the pandemic and low raw fish tax revenue in recent years, but she expects the fund to bounce back.
Capital projects scheduled for FY23 in harbors include a large-scale repair of the Crescent Harbor high dock, as well as various repairs to finger floats and harbor parking lots.
The Assembly had previously decided on rate increases for electric, water, wastewater, and solid waste, and did not make any changes at the Tuesday meeting.
Electric – 4 percent increase
The 4 percent electric fund rate increase – far below the current rate of inflation, 7.9 percent – is estimated to cost $9.75 more per month for an average 1,500 kwh user.
Of note are phases 2 and 3 of the Green Lake rehabilitation project, which is looking for a little over $7 million in funding. Haley said Tuesday that the city is pursuing as much capital as possible through grants and loans for the project.
Capital in the electric fund also will be put toward upgrades to diesel generators, as well as toward smaller capital projects such as meter replacement.
The city’s diesel generators are more than 50 years old, and electric department officials told the Assembly that it would be cheaper and more reliable to replace the generators with new ones rather than repair existing ones. Repairs would require custom-made parts, whose reliability following repairs would remain questionable.
Water – 5 percent increase
After larger rate increases in previous years, the Assembly decided on the lowest rate increase among options presented by staff for FY23.
Haley said in her report that no new loans will be sought in FY23, though the city will still rely on debt to maintain infrastructure and will be looking for grant funding opportunities.
Working capital generated from the fund will help cover debt service of the new critical secondary water filtration plant, which will be used only when needed.
The 5 percent increase will increase costs by $2.57 per month, putting the new water rate at $54.54 per month.
Wastewater – 8 percent increase
The wastewater fund’s 8 percent rate increase is in line with the current rate of inflation and will help to supplement a number of unanticipated projects coming up, Haley told the Assembly.
Upcoming capital projects include the rehabilitation of the Thomsen Harbor lift station, which is estimated to cost around $1.3 million.
Haley said the city will be looking into grant opportunities for the Thomsen Harbor lift station rehabilitation, and added that a loan to help with the costs has already been applied for.
The 8 percent increase, which was the midrange option selected by the Assembly, will add $5.24 a month in rates, bringing the new monthly household rate to $70.71.
Solid Waste – 7.5 percent increase
The solid waste fund will not see any new capital projects in FY23 but is working toward alternatives for the funding of a new trash compactor now required by the city’s waste shipper.
The city has already appropriated the remainder of its economic development fund to purchase the $3 million compactor, but is continuing to pursue grant and loan possibilities through the USDA.
The 7.5 percent increase in user fees will raise the monthly rate by $4.23, for a charge of $69.24 per month for a 90-gallon container. The scrapyard and transfer station will implement a 4 percent rate increase.
Other funds
No new capital projects are planned for the airport terminal, marine service center, and Gary Paxton Industrial Park funds, though the city expects development on the airport terminal renovation project.
