Ruling: Anchorage Won’t Pay $50M to Water, Wastewater Utility Customers

The case dates back to 2003 when then-mayor Mark Begich changed the formula to calculate payments collected from the utility that are much like property taxes.

Tools

By Lauren Maxwell
Bio | Email

The Municipality of Anchorage has won a lawsuit that could save taxpayers as much as $50 million. The state’s Utility Regulatory Commission has ruled the city does not have to pay the money back to customers of the Anchorage Water and Wastewater Utility.

The case dates back to 2003 when then-mayor Mark Begich changed the formula to calculate payments collected from the utility that are much like property taxes.

Begich raised the rates and AWWU raised its own rates to help cover the extra expense.

What the Regulatory Commission ruled is that Begich was right to collect the so-called “MUSA” payments, which stands for municipal utility service assessment, so the city owes no refunds.

Anchorage Mayor Dan Sullivan says the money was by far the city’s largest liability and it is a huge relief to get it off the books. He says the decision could also increase the city’s bond ratings. As for utility customers, the ruling should not change any customer’s bills—those will remain the same.

You have indicated this comment should be removed.

Close

The comment has been submitted for review. Thank you .

Puppet show said on Tuesday, Jun 28 at 8:19 PM

This was the city calling everyone stupid.

69845302
Inappropriate? Alert Us!

locolobo said on Tuesday, Jun 28 at 10:14 PM

No, this was the city giving the people who live here the middle finger.

69847917
Inappropriate? Alert Us!

Anonymous said on Tuesday, Jun 28 at 10:40 PM

It was a clever way for the city to ripoff it's citizenes and get away with it.Had the city had to repay the money Danny boy would just come up with a way to tax something to make the revenue for the funds and we citizens would be paying the money twice in reality!

69848372
Inappropriate? Alert Us!

BLAZO said on Tuesday, Jun 28 at 11:10 PM

The ruling needs to be appealed.

69848824
Inappropriate? Alert Us!

Horsein said on Wednesday, Jun 29 at 6:54 AM

Mayor begich belonged to the US Conference of Mayors. Agenda 21 targets the Mayors of all cities. There are also 3 assemble members that belong to the National City of Legues. People beware these groups are promoting a United Nations agenda. I would not be surprized that Title 21 has a group called ICLEI behind it. Another United Nations group to promote who you will live and attack your private property rights.

69864906
Inappropriate? Alert Us!

Stay Tuned said on Wednesday, Jun 29 at 11:11 AM

This is just the beginning. They are testing the water to see what they can get away with Anchorage. Stay tuned there will be more to come in the future. But it is interesting the people charges the residents of Anchorage on the well system (Hillside residents). So nice of them to look out for the people lelow them.

69882802
Inappropriate? Alert Us!

Add a comment

Name:

Comment: 1000 Characters Left

KTVA CBS 11 | Anchorage, Alaska News and Weather and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.