Juneau Assembly advances potential $10M school maintenance bond and utility rate hikes

The Juneau Assembly moved forward with a plan on Wednesday that would add up to $10 million to the city’s debt if approved by voters in this fall’s election. It would fund critical repairs and upgrades to Juneau’s schools after years of deferred maintenance.  

The Assembly decided to prioritize funding repairs to schools over the city’s water and sewer systems, which are also in need of some TLC. That means utility rate hikes are likely on the way. 

Superintendent Frank Hauser spoke about the need for school repairs and upgrades at a meeting last month. 

“The impact that facilities, well-functioning facilities — not only having roofs that are not leaking, but also HVAC systems that are consistent and sustained at a comfortable level — the importance of that is for the learning environment of our students,” he said. 

The repairs would include partially reroofing Juneau-Douglas High School: Yadaa.at Kalé and Sítʼ Eetí Shaanáx̱ Glacier Valley Elementary School, upgrading heating and ventilation systems and adding new security and safety measures district-wide. 

The decision last night wasn’t final. The Assembly still needs to take public comment before deciding whether the bond measure will go to voters. During the same meeting, the Assembly shot down a different bond package that would have asked voters to fund repairs to the city’s water and sewer systems, as much of its infrastructure reaches the end of its lifespan. 

Assembly member Maureen Hall said she worried that putting two bond questions on the ballot would overwhelm voters. It also comes after last fall’s election, when Juneau voters approved a different $10 million wastewater bond to replace infrastructure at the Juneau Douglas Wastewater Treatment Plant.

“I think there’s going to be an awful lot on the ballot this fall, and so I am a little hesitant to charge forward,” she said. 

Instead, members voted to push forward with a plan that would increase residential water and sewer rates by 5% annually over the next five years, and pair it with a bond package or other payment options later down the line.

City Manager Katie Koester said she believes the proposed 5% increases are the “least painful option” for residents that still addresses the need to pay for repairs. 

“I worked with the utility and we really, like, sharpened our pencils and scoured budgets to try to come to you with the recommendation that we feel like has the lowest impact on our ratepayers and the lowest current year pain on our budget,” she said. 

But the proposed increases would only begin to offset hundreds of millions of dollars in maintenance or replacement needs. In December, Juneau’s Water Utilities Division originally proposed increasing residents’ rates by more than 60% over the next five years to address those urgent repairs. 

Assembly member Alicia Hughes-Skandijs said she thinks the 5% increases are too low given the significance of the problem. 

“I don’t want us to be a body that kicks problems forward to future Assemblies and only continues to put us in a worse situation financially, at a time where our equipment is super old,” she said. 

But, Assembly member Ella Adkison said the proposed increase won’t go unnoticed.

“We talk about affordability in Juneau, utility rates are one of the biggest factors in affordability, because it affects everyone, including some of our lowest-income families,” she said. “It can really hit them hard.”

The Assembly will still need to take public comment at a future meeting before passing any rate hikes. If approved, those would go into effect in July.