Getting the price takes years and costs money

Superior voters get vote on this acquisition on April 6, 2027—before anyone knows the final acquisition price. A yes vote would move the takeover forward, and guarantee legal and consulting expenses along the way.

First spend money to get the price

The City would pursue a valuation before the Public Service Commission of Wisconsin. Hearings, valuation disputes, and possible appeals could take years. Notably, the City of Superior would be required to pay all the PSC expenses, since the City would be initiating the process.

The Concentric study estimates these legal bills at $2 million and calls it “conservative".

Then decide whether to buy

The PSC process will set the “just compensation,” or purchase price, for the water utility. A respected national firm that regular values utilities for voluntary and involuntary sales has estimated $146 million to cover assets and going-concern value.

Once the price is final, Wisconsin law provides the City just 90 days to walk away or they become the legal owner. The City would need to weigh the price, financing terms, and effect on water bills. Walking away would not recover money already spent pursuing the takeover. If they do proceed with the takeover, it’s questionable whether the PSC would allow those legal costs to be recovered in future water rates.[2]

Then finance and prepare to operate

If the City proceeds, it would need to pay for the acquisition and prepare a separate water utility to operate. The additional takeover costs are estimated at $38 million. Some preparation could begin before the final price is settled.

The Council resolution allows general obligation bonds, revenue bonds, or both. Debt service is intended to be paid through water rates but if general obligation bonds are used, those are guaranteed by the full faith and credit of the City, i.e., any shortfalls would land on the taxpayers.