Wausau could be losing millions in revenue due to dead or malfunctioning water meters

Wausau is losing millions of dollars in uncollected revenue due to a substantial lag in replacing water meters, which have a roughly 10-year lifespan.

City officials only recently discovered a 17 percent discrepancy in the amount of water being distributed from its new drinking water plant compared to customer billing rates. That rate is reported to the Wisconsin Department of Natural Resources and the Public Service Commission.

DNR Field Operations Director Kyle Burton in July told Wausau Pilot that drinking water utilities can see about a 10 to 15 percent water loss due to activities such as fire protection services, hydrant flushing and filter backwashing. With a rate higher than 15 percent, the DNR recommends leak detection studies and staying current on water meter replacement and calibration, among other remedies.

On Wednesday, Dept. of Public Works Director Eric Lindman told a Wausau committee that no leaks have been discovered that would explain the discrepancy. During Wednesday’s meeting, city officials acknowledged this week that more than 7,000 water meters in Wausau need to be replaced.

Lindman estimated the annual loss in the “hundreds of thousands,” though Mayor Doug Diny said the lost revenue could be as high as $1.2 million in water being distributed that is not being billed to customers. The number is especially significant given the Water Works’ overall annual budget, about $12.8 million in 2024.

The lost revenue, which causes a shortfall in the city budget and is passed on to taxpayers, comes at a time when residents are reeling from major utility rate hikes.

A major increase for Wausau water customers went into effect in July 2023, leaving many residents angry and concerned about their finances. The change meant the average Wausau resident saw their water bill ratchet up from about $292 annually to about $448, about a 54 percent increase. In 2021, the average annual bill was about $229 a year – about half of what Wausau citizens are paying today.

The loss in revenue has likely gone on for years, before those rate hikes were introduced. Lindman this week said the issue only came to light this year after new equipment was installed. City officials acknowledge that “accurate billing and metering helps to prevent” rate increases.

Unclear is why the city fell behind on meter replacement or what to do about residents who do not voluntarily have their meters replaced.

Scott Boers, superintendent of the city’s drinking water division, said the overall cost to replace the old meters is more than $2 million. Wausau Water Works is requesting $1 million from the general fund and another $800,000 in American Rescue Plan Act Funding to purchase the new meters for installation.

If water loss is very high for several years PSC can reach out to Wausau asking for some additional actions, DNR’s Burton said.