Wausau Water Works
WAUSAU, WI (WSAU) — Financial consultants for the City of Wausau are proposing a significant increase in the city’s water rates to go with the new drinking water treatment facility and proposed granular activated carbon filtration system.
Brian Roemer with Ehlers Financial says the utility needs to consider a 65% increase for drinking water and a five percent hike for sewer services to keep up with costs and debt obligations. “[For] a quarterly usage of 1,600 cubic feet [the bill would be] $140 compared to the $85 that it is now. Or, a change to a quarterly bill of $55,” said Raymer.
Public Works Director Eric Lindman told WSAU News in an email before Tuesday’s meeting that the proposed hike does not include possible grant funding for the nearly $17 million GAC system. However, Roemer told the Commission that even if the utility can secure a significant amount of grant money they still need to go for the full increase because of current debt obligations. “It is our opinion that the 65% [rate increase] is needed,” said Roemer. “What ultimately has happened is by the use of cash for this fiscal year, 2022, reserves are quite depleted. Moodys, the [credit] rating agency, has also spoken to the creditworthiness of the enterprise by identifying a potential negative outlook without a rate adjustment happening.
“This 65% adjustment gets you to these various benchmarks that we believe are fiscally sustainable,” added Roemer.
Many on the commission noted that such an increase would be difficult for low-income residents to swallow. Roemer also suggested pushing some sort of assistance program or creating a lower step on the scale for users who might live alone and don’t consume as much water as a family.
“I’m very concerned that a 65% rate increase is a huge burden for our lower-income ratepayers. Not so much for our higher ones, perhaps, but according to Ehler’s tables, we have a lot of folks who are earning less than $50,000 a year,” said Commissioner Jim Force.
Commissioner John Robinson also noted that the increase would give Wausau some of the most expensive water in the state, which is a title he says the city doesn’t want because of what it could do for economic development. “What problems could that cause the city when it comes to either attract or retain existing volume users?”
Both Roemer and Lindman said that’s a difficult question to answer. So far it’s unclear if any businesses would plan to leave the city because of what the increase would do to their bottom line.
Tuesday’s discussion was for informational purposes only. Roemer noted that they will be passing the proposed rate increase on to state regulators next week for consideration.
There will be a public comment period before any increase is implemented. The earliest an increase could come is mid-2023, meaning 2024 would be the first full year of implementation.
Comments