Wausau finance committee agrees to cover $149,349 shortfall in 2024 lead service line project

The Wausau Finance Committee voted July 8 to cover a $149,349 shortfall from the city—s 2024 lead service line replacement project using the 2024 revenue surplus and reviewed options for a 2025 general obligation promissory note for capital improvements.

The decision followed staff briefings on funding options for a set of capital projects already budgeted. Mary Anne, a city staff member, told the committee, "I am expecting again for the '24 budget that we would have a profit of about $550,000," and said staff could bring an August 12 council resolution to transfer surplus funds to cover the uncovered lead-service-line costs.

Why it matters: the state previously reduced the amount it would cover for the lead-service-line work, leaving a local funding gap. Committee members discussed whether to include the shortfall in the 2025 general obligation (G.O.) debt issue or to pay it from the city—s fund balance. Choosing the surplus-transfer option removes that amount from the proposed borrowing.

Staff said the Department of Natural Resources initially identified roughly $254,000 in costs it would not fund, and later finalized the uncovered amount at $149,349. Eric, a city staff member, explained the state decision: "they had just set a hard deadline saying or a hard number saying that they weren't gonna fund any more than 25% of non construction related" costs, and that the result reduced the DNR—s contribution on this project.

Finance staff and the city's financial advisor, Ehlers, also discussed the structure of a 2025 G.O. promissory note. Staff said Ehlers was preparing parameter resolutions (limits on interest rates and sale conditions) for the committee to consider before the July 22 finance meeting. Staff additionally reported that Tax Incremental District 3 (TID 3) has about $1 million in cash that could be applied to the listed projects, which would reduce the size of any debt issuance.

Action taken: a motion to cover the $149,349 shortfall for lead service line replacements from the 2024 revenue surplus was made and seconded. The committee approved the motion by voice vote; no roll-call tally was recorded in the public minutes.

The committee also approved the minutes of its June 24, 2025 meeting by voice vote earlier in the session.

What happens next: staff will present updated debt-issuance parameters and documentation (reflecting the possible $1 million TID 3 contribution) at the July 22 finance meeting and will bring a transfer for council consideration on August 12 if the committee confirms the surplus-transfer approach.