The True Cost of a Government-Run Utility
The City of Superior’s website indicates the City may pursue a takeover of Superior’s water utility. A comprehensive, independent study estimates that the cost for the City to seize and operate this essential service would be $186 million.
Why is this number so high?
If the City moves forward, it would be required to pay fair market value for the water utility. This isn’t optional — it’s a legal requirement of this kind of takeover. Acquiring this asset would take a significant financial commitment that would need to be approved by the Public Service Commission of Wisconsin.
What would this mean for residents?
To fund the takeover, the City would likely need to take on substantial debt. This kind of borrowing could have long-term implications for taxpayers and city budgets and put both a city-run utility and other essential city services at risk.
Would this impact my water service?
Running water services is complex and costly. Transitioning to a brand new, government-run utility introduces challenges that could affect the quality of service and the cost of this service for Superior residents for decades.
What if the city takes over all three utilities?
The City’s communication has been unclear. Previously, Mayor Paine and several members of the Superior City Council indicated they could be considering a plan to take over all the essential services we rely on – water, gas, and electricity.
An independent analysis found that a full takeover of all three utilities would cost the City $290 million.