Wausau finance committee agrees to cover $149,349 lead service-line shortfall from 2024 surplus; schedules debt-item follow-ups

The Wausau Finance Committee voted July 8, 2025, to cover a $149,349 shortfall in a 2024 lead service-line replacement project from the city's 2024 revenue surplus and to forward a transfer for council consideration on Aug. 12.

The action arose during discussion of a proposed 2025 general obligation promissory note for capital improvements. Committee members considered two options for the ineligible costs: include the amount in the 2025 debt issue or pay it with a one-time transfer from the general fund's 2024 surplus. Mary Anne, a staff member, presented the financing options and the DNR's determination on eligible costs. She said the state had closed on the 2024 project and "they did determine that they weren't going to consider all of the costs eligible costs. So there's about a $150,000 of, expenses that they are not going to include in that project."

Committee discussion noted the city's expectation of about $550,000 in 2024 surplus and the option to transfer funds instead of including the amount in the bond issue. A motion was made to cover the $149,349 from 2024 revenue surplus; Alder Tierney seconded the motion. The motion passed by voice vote; no recorded opposition was stated. Committee members asked staff to present a transfer resolution to the full Common Council for its Aug. 12 meeting.

Staff also told the committee that the city's financial advisor, Ehlers, was preparing parameters for the 2025 debt sale and that recent federal-level announcements have increased bond-market volatility. According to staff, Ehlers will provide debt-parameter recommendations before the committee's July 22 meeting. Staff additionally said Tax Incremental District 3 (TID 3) has about $1 million in cash that could reduce the planned issue size; committee members expected updated documentation about that possibility at the July 22 meeting.

Eric, a staff member involved in the DNR discussions, described prior negotiations over the funding level and said the DNR set a cap on nonconstruction costs: "they had just set a hard deadline saying or a hard number saying that they weren't gonna fund any more than 25% of of, non construction related." He said the DNR's initial position reduced the city's expected reimbursement from about $254,000 to the $149,349 figure the committee approved covering.

No other formal actions were taken on the 2025 promissory note at the committee meeting; the committee expects to review updated debt parameters and TID 3 documentation on July 22 and to forward any necessary resolutions to the Common Council on Aug. 12.