Wausau City Council Does Not Vote on Resolution Directing Mayor to Work 2025 Budget Without PILOT Payment

Friday, July 12th, 2024 -- 8:01 AM

(Mike Leischner, WSAU) The Wausau City Council did not vote on a resolution directing the Mayor to begin working on the 2025 budget without a PILOT (Payment In Lieu Of Taxes) from the city’s water utility into the general fund.

According to Mike Leischner with WSAU, the item was killed without discussion on Tuesday after Council President Lisa Rasmussen objected to suspending the council’s rules for the matter, which require advance notice and referral from committees for action items.

“This item has come to us out of order. Our rules require resolutions put before [us] be vetted by our standing committees for a reason. There is research that is required. You need facts, you need figures, you need data. None of that exists here.”

Rasmussen says the idea of decreasing the PILOT to help lower water bills is appealing and deserves attention, but she doesn’t want to see it brought forward until tangible data is present and unknowns are cleared up.

“We can have impacts on our bond rating, this has had no legal review, and no financial analysis. For us to just throw a dart and say boom [let’s go for a 10% reduction,] is irresponsible of us.” The idea was brought forward during the 2023 budget process.

A last-minute amendment was even brought to the budget approval meeting to reduce the payment on a trial basis, which failed. Many on the council agreed that the item was worth pursuing as part of this year’s budget.

Rasmussen added that she doesn’t want the item to be fast-tracked just because it’s attractive. “The process that got followed here is not our process, and it does violate [the Council] rules.” Many who spoke during public comment favored the change, noting that the $2 million comes across as another tax on residents.

Former District 3 Alder Tom Kilian challenged the Council to act, adding that the issue was a cornerstone of Mayor Doug Diny’s campaign last winter. “This is what the majority of Wausanians want and it’s a follow-through on that commitment.”

Kilian also noted that the complete elimination of the PILOT could lead to a decrease of as much as 20% for some residents, citing the city’s own financial data and information from the city’s financial consultants.

Mayor Diny argued that the measure was symbolic, saying he wanted guidance from the Alders as the chair of the Wausau Water Works Commission. Rasmussen added that the Mayor doesn’t need Council permission to do that because the initial budget sent to the finance committee is essentially the Mayor’s proposal.

“If the Mayor wants to make adjustments to that budget in terms of cuts [or] revenue reductions; he can make them without any direction from the council and include them in his draft.” The vote to suspend the rules failed with just five Alders voting yes, ending any potential discussion on the agenda item.

Alders also voted to table a proposed lead service line replacement ordinance, which has been in the works for three years. That item will likely be discussed in a Committee of the Whole format before being considered at an August council meeting.

Alders cited confusion over what enforceable action the ordinance could contain. Alders also discussed building protections into the ordinance for homeowners to keep them from absorbing costs if grant funding isn’t available in a given year.

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