Unalaska, AK – The city's wastewater rates may have to go up. Currently the wastewater utility is looking at a revenue shortfall of $300,000. When the city raised the rates three years ago, the increase amount was based on projections that wastewater volume would be much higher. Financial engineering consultant Michael Hubbard said that rates eventually need to go up 27 percent for all types of customers, metered and un-metered.

"But that's quite a bit. So it would be my recommendation at this time for the city to implement a rate increase of, say, 15 percent right now and then again monitor the system."

Monitoring the system will show which customers are actually causing the most wastewater. The current cost of service study shows that industrial customers are underpaying by 800 percent. Hubbard said that isn't quite accurate. "Cost of service studies are not a precise science by any means, and especially so for water and wastewater utilities."

Therefore he recommended an across the board increase until they gather more data on usage and flow and then the city needs to re-evaluate the system in six months to one year. Hubbard also said that the city will need to build a new wastewater treatment plant at some point in the near future, once the state and federal governments determine which wastewater treatment regulations apply to this community. When that happens, operations costs could drive up the rates even further.