A rate hike for utilities could be on the horizon.

Haines Borough staff on Tuesday proposed increasing water and sewer rates by 5% each year for four consecutive years.

The hike, which staff originally planned to propose in 2020 but waited due to the pandemic, would compensate for a combination of ballooning water and sewer fund expenses, state and federal funding cuts and high inflation.

The current monthly residential flat rate for water and sewer…