Wausau Water Works Commission Proposing 65% Increase to City's Water Rates

Wednesday, December 7th, 2022 -- 9:01 AM

(Mike Leischner, WSAU) The Wausau Water Works commission will be proposing a 65 percent increase to the city's water rates and a five percent hike in sewer rates to cover operational costs including the instillation of a new granular activated carbon filtration system.

According to Mike Leischner with WSAU, Brian Raymer with Ehlers Financial outlines what that means for a quarterly water bill. "That would create a quarterly bill at a quarterly usage of 1,600 cubic feet of about $140 as compared to the $85 that it is now. Or a change to a quarterly bill of $55."

Commissioner Jim Force notes that the proposed increase of over 60 percent will be difficult for low-income users to swallow. "I'm very concerned that a 65% increase is a huge burden for our lower income rate payers. Not so much for our higher ones perhaps. But, according to the tables, we have a lot of folks that are earning less then $50,000 a year."

Raymer says the proposed increases may need to come with more assistance for lower-income rate payers. "The Madison Water Utility just passed one through the Public Service Commission as a model that other utilties may use and we can certainly help the city look into similar models. Or you can also kinda change the rate blocks and look to investigate a lifeline rate."

Raymer says the utility needs the increase to remain viable, and adds that credit agencies like Moody's have noted that income is not keeping up with debt obligations. "So, it's our opinion that the 65% is needed."

Commissioner John Robinson noted that the proposal could make Wausau's water some of the most expensive in the state, which gives him pause when it comes to further development in the city. "We will have the highest rates for meters in pretty much every group based upon volume usage. What problems does that pose to the City as they try to either retain or attract exisiting users?"

The utility plans to present its proposal with state regulators by December 15th. Any potential rate hike would be implemented by the middle of 20-23. Public Works Director Eric Lindman notes that there will be opportunities for public comment as part of the filing procedure.

Raymer also noted that grant funding for the granular activated carbon filtration system would not impact the proposed rate increase for drinking water.

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