Wausau council approves up to $14.96 million in promissory notes, adopts multiple budget modifications

The Wausau Common Council on Aug. 26 authorized the city to issue a general obligation promissory note not to exceed $14,960,000 to finance several capital projects and refinance tax-increment district (TID) obligations.

Phil Kassem of Ehlers presented the presale report, which recommended a parameter sale to give the city flexibility on timing and maturities. Kassem said the city has seen valuation growth that keeps borrowing capacity manageable and that Wausau’s rating with Moody’s (Aa3) was expected to be retained. He told the council the borrowing would be split by purpose — TID 3 and TID 8 projects would be repaid from increment, while general-city projects would be paid from the debt service levy — and noted the issue is callable in 2032.

After discussion the council adopted the presale parameters for the not-to-exceed $14,960,000 GO promissory note (file 250812). The motion was moved by Ald. Martins and seconded by Ald. Watson; the resolution passed with two recorded “no” votes.

The council also approved several related finance items: - A budget modification to cover a shortfall on the 2024 lead service line project (file 24-1109P). City staff said the shortfall resulted from negotiated DNR decisions that rejected certain outreach costs; finance recommended covering the shortfall from reserves. The motion passed. - A budget modification for Athletic Park construction (file 24-1109Q). Passed. - A budget modification for bracing on Hangar Door 4 at the Wausau Downtown Airport (file 24-1109N). Passed. - A budget modification for a public safety building chiller (file 24-1109O). That motion passed with at least one recorded “no” vote from Ald. Larson, who criticized repeated budget increases for city engineering projects. - Acceptance of a VW settlement grant and a budget modification to purchase up to 10 buses for Wausau Metro Transit (file 18-0915). The council approved the grant-funded bus purchase; the interim transit director and council noted the grant sets per-bus limits under the award.

Votes at a glance (formal actions recorded on Aug. 26): - File 250812: Authorize presale parameters for GO promissory note not to exceed $14,960,000 — moved: Martins; second: Watson — outcome: approved (2 opposed). - File 24-1109P: 2025 budget modification for lead service line shortfall — moved: Lukens; second: Watson — outcome: approved. - File 24-1109Q: Athletic Park budget modification — moved: Neil; second: Larson — outcome: approved. - File 24-1109N: Hangar Door 4 bracing (Downtown Airport) — moved: Rasmussen; second: Lukens — outcome: approved. - File 24-1109O: Public safety building chiller budget modification — moved: Tierney; second: Watson — outcome: approved (record shows at least one “no” vote). - File 18-0915: Acceptance of VW settlement grant, purchase of up to 10 buses for Wausau Metro Transit — moved: Henke; second: Martins — outcome: approved.

Council members pressed for oversight on project cost increases. Several aldermen said engineering projects repeatedly return for supplemental appropriations, and Ald. Larson declined to support one budget modification to send a message about project controls. City finance and outside advisors said the structure of the promissory note allows flexibility and that some TID-financed projects do not rely on the general levy.

Ending — implementation: If market conditions meet the adopted parameters, the sale could be conducted in early September with an estimated closing in mid-September; staff will continue work with bond counsel and financial advisors to finalize sale documents and amortizations by fund.