On April 6, 2027, voters will decide whether the City of Superior should pursue acquiring the privately held water utility. A ‘Yes’ vote would authorize the city to request a proceeding before the Public Service Commission of Wisconsin. By law, this vote comes before knowing the final price. Read the exact ballot question here.

The estimated all in cost is $186 million: $2 million to “get the price,” $146 million for acquisition, and $38 million in additional takeover costs. The estimate comes from a respected national firm that regularly conducts utility valuations and reviews all the associated costs with a takeover. It is not the final PSC price or a ceiling.[1]

Likely millions of dollars, none of which we get back if the ultimate price tag to take over the utility comes back too high. Those millions pay for the City’s lawyers and consultants as well as the PSC proceedings.[1] Don’t believe us? Mayor Paine added $400,000 to the next budget and promised the Council that the costs “will go up”.

The City’s appraisal applies very different valuation assumptions and does not account for inflation or projected investments between now and when the takeover could reasonably happen.[1] It also applies a very questionable discount for “economic obsolescence”. See The Full Cost for more info.

They are far more likely to go up, which is what the independent study from Concentric showed.[1] The City’s own study also says rates could go up.

One thing is certain: no one can promise lower rates without knowing the purchase price or all the other associated costs. That’s like promising a lower mortgage payment when you don’t know the cost of the house. The average residential water bill in Superior is less that $65/month. Common sense test: how can the City go deeply in debt for this acquisition and promise to lower anything?

The Council resolution allows general obligation bonds, revenue bonds, or both. While it states that debt service is intended to be paid through water rates, general obligation bonds by definition expose taxpayers to unanticipated costs. The final borrowing amount, interest rates, and annual payments are not yet known.

Yes. Wisconsin law provides a process to discontinue the acquisition after final price is set by the PSC and any potential appeals are resolved. The law says the City has a 90-day window to walk away, but money already spent pursuing the takeover would be gone.[2]

The valuation process and possible appeals could take years. The national firm’s study assumes city operations begin in 2031 and describes the schedule as aggressive.[1] The City attorney is on record stating that he has no idea how long this process will take.

Superior operates a wastewater treatment plant, not a drinking-water utility. Drinking-water treatment and distribution require different expertise and certifications. A takeover would also require staffing, operating systems, and emergency response arrangements.

The employees are not included in the acquisition. They would decide whether to work for a city utility. The City cannot count on acquiring an experienced workforce simply by buying the assets. The labor union that represents over half the employees has testified in opposition to this takeover and is a member of the Superior Community Coalition.

The difference is the debt and all the legal fees. Most water utilities in WI started out as publicly owned and the others were sold voluntarily. This is a contested takeover of part of an integrated water, gas and electric utility. That means Superior residents would be funding the contested hearing before the PSC, then paying fair market value to acquire the water utility, and then paying to startup a new operation. It is very different than any other water utility in Wisconsin.

Wisconsin law provides a process for city acquisition of a utility called Statute 197. This law was intended to protect residents from a privately owned utility that was failing to meet its obligations, which is not the case in Superior. There is a separate legal issue about whether a WI municipality has the authority to take the water intake equipment that is located in Minnesota waters. That dispute concerns a particular asset, not whether Wisconsin cities have acquisition authority in general.

The water intake equipments supplies drinking water to the City of Superior and the Village of Superior. SWL&P’s attorneys have sent the City a letter that is in the public record, stating that Statute 197 does not authorize them to take an asset across state lines unless it is used entirely for the City of Superior. This dispute is likely to add costs and complications to any takeover efforts.