WISCONSIN RAPIDS, WI (WSAU) — A legal decision in Pewaukee has shelved the Wisconsin Rapids city-wide transportation utility for now.
Mayor Matt Zacher says a lawsuit by a statewide manufacturing group successfully argued that the added user fee on the city’s tax bill was against the rules, meaning they’ll have to shelf it for now. That threw a giant curveball into the city’s 2025 budget.
“We had to make up that money because we didn’t want to go back to special assessments, which can be in that ballpark of $10,000 to $30,000. That’s getting to be too expensive for people to be able to afford,” said Zacher.
Special assessments are fees levied against residents along a city street that’s due for reconstruction. Wisconsin Rapids’ transportation utility was designed to eliminate those by having all residents pay a fixed amount each year in addition to their property taxes, with that money then going to cover the assessment costs that would otherwise go against the property owners who live along the streets that are due for repair.
“It wasn’t designed as a tax, it was based on trip charges. Meaning every time you drive in or out of your driveway. It’s really a usage fee,” added Zacher. “Every time you use the road you pay some money to the road for using it.
“[You could say] usage tax, but that’s what gets the whole thing in trouble,” added Zacher. “Businesses have a lot more people coming into and leaving their parking lots. And they wouldn’t be able to get to the store without roads. So because there are so many trip charges, it effects the businesses more.”
Zacher explains that the lawsuit was initially upheld at the local court but a state appeals court overturned it and the State Supreme Court decided they wouldn’t take the case, meaning the appeals court decision stands. He went on to say that they managed to negotiate with utility providers to help ease those costs, so there would be no special assessments for residents in 2025. “Really the most expensive part is tearing the road out and replacing all the utilities. We were able to work with them, communicating effectively by sitting at the table and being respectful then figuring out how we could have those utilities help cover more of those road projects, cover some of those special assessments.”
Other topics Zacher discussed with WSAU’s Mike Leischner include:
Start of video- Election recap
6:30- Mill update
11:40- Budget update
16:00- Rekindle the Spirit prade
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