Ketchikan City Council on Thursday approved seven ballot propositions for the October 7 municipal election. One asks voters if the city can pursue up to $15-million to pay for a wastewater disinfection facility, and to fix emergency wastewater lines.
Acting City Manager Lacey Simpson said if voters agree, the city could obtain bonding or loans for the projects.
“We’re just seeking voter authorization at this point for those projects which we do not have exact amounts on, nor have we entertained any sort of bonding proposal or loan proposal through the state as of yet,” Simpson said.
Most of the money – about $10 million – would go towards a disinfection facility. It’s part of a new requirement by the U.S. Environmental Protection Agency calling for more treatment of wastewater that is dumped into the ocean. The change is affecting several coastal communities in Alaska that have been operating through a federal waiver.
City Finance Director Michelle Johansen said the city wouldn’t enter into debt until they have a loan that’s approved by the council.
“Those are low-interest loans through the state of Alaska, so we can’t afford not to undertake those loans because they are low-interest, and therefore projects that are necessary,” Johansen said.
To pay off a future loan, Simpson says customers’ rates would “absolutely” go up.
“There is not sufficient reserves to support those projects as part of a condition of a loan or a bond,” Simpson said. “We need to demonstrate that we have sufficient revenues to support that payback.”
The resolution to put the question in front of voters passed unanimously.
Here is more information about the other propositions.
