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Committee debates who pays for water and sewer upgrades as staff cites DNR funds and principal forgiveness
Summary
Wausau alderpersons questioned shifting public-side infrastructure costs to water-rate payers and discussed alternatives—TID increment, revenue bonds, or general-obligation debt—after staff said 2025 DNR funds are available and principal forgiveness makes the current program advantageous.
Wausau alderpersons on Jan. 28 pressed staff on how the city will pay for a wave of water and sewer upgrades included in the 2025 capital budget, focusing on whether costs should fall to water-rate payers, taxpayers via general-obligation debt, or be funded using tax increment district (TID) increment.
The discussion followed staff remarks that the Wisconsin Department of Natural Resources has confirmed funding for 2025 and that current programs include significant principal forgiveness. “Right now we’re doing basically $20,000,000 worth of work for $8,000,000 in loans,” Staff member Eric said, citing staff estimates. Eric and other staff told the committee that, under current assumptions and with Ehlers’ analysis, the water utility could make annual debt payments without an immediate rate increase, though consultant Brian Romer of Ehlers noted the city might plan for a 5% increase in 2026 if necessary.
Why it matters: Committee members said shifting more of the public-side cost onto water users could impose an added…
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