Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pilot Payment topic
No spam. Unsubscribe anytime.
Council narrows Wausau Water Works'pilot payment, citing rate stability and budget timing
Summary
The Common Council voted 9-1 to dial back the water utility's pilot payment for 2025, a move staff said prevents an automatic rise tied to plant valuation and avoids a likely Public Service Commission rate application that could increase water rates.
The Wausau Common Council on Dec. 9 adopted a finance committee resolution adjusting the property-tax-equivalent (pilot) payment from Wausau Water Works for 2025, in a 9-1 vote.
Alder Tierney asked that the file be pulled from the consent agenda to discuss taxpayer impacts and the long-term role of pilot payments; council members then debated whether the pilot should be reduced, phased out or left alone. One concern raised was that removing the pilot without further planning could prompt a utility rate case at the Wisconsin Public Service Commission (PSC) that might raise water rates for consumers.
A city staff member explained that the PSC uses a formula tied to utility plant value to set rates, and that if the pilot were removed the city likely would need to seek a rate change through the PSC, which could result in higher billed rates. Council members also noted the pilot's distributional effects (nonprofits that do not pay property taxes still receive utility service bills) and that the pilot has helped the water utility avoid higher debt service in past years.
Alder Rasmussen framed the resolution as dialing back the pilot'payment's recent "creep" to improve water-rate stability and protect customers from a PSC-driven rate increase. Several members said any comprehensive change (phased reduction or elimination) would need to be planned early in the next budget cycle so the levy and utility rate impacts could be balanced.
The resolution passed 9-1; council members asked staff to bring longer-term options for phased reductions or other alternatives during next year's budget deliberations.
