Wausau Friday Facts (1/7)
WAUSAU FRIDAY FACTS #1
Did you know that the City of Wausau taxes its own water utility?
Yes, it does, and the tax is pretty hefty! According to the 2026 city budget (page 229), the Wausau water utility is projected to collect $12,714,400 in fees from users in 2026. Then, it has to turn around and pay a tax to the City of Wausau of $1,590,000.
In 2023, water bills increased approximately 63% in Wausau. We were told it was for the new water treatment plant. However, city officials neglected to tell us that not all of the money was going to the utility. One in eight dollars that you pay for water is simply given to the city to use for other purposes. It is an un-itemized, hidden tax in your water bill.
It is also a significant tax. The city has essentially imposed a 12.5% sales tax on the water that you must buy from its monopoly. That is a lot.
Technically, this internal transfer is called a PILOT payment or payment in lieu of taxes (PILOT). It is a state law that allows municipalities to allegedly compensate themselves for city services provided to the water utility and its physical plant. It is optional and not mandatory.
Many people think it is a dishonest tax and a bad policy. Local government is complicated enough without creating these fiscal shell games. In the interest of transparency and accountability, water bills should be for water, and property taxes should be for city services. At the very least, there should be a clear itemization on your water invoice that tells you where your money is going.
Do you agree or disagree? Feel free to register your comments on Facebook. https://www.facebook.com/wausaudistrict6/
Wausau Friday Facts is a once-a-week presentation of factual data to inform residents about their city government. It is put out by the Friends of Keene Winters, Cathy Winters, Treasurer.
https://www.wausaudistrict6.com/fridayfacts

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