During a recent government meeting, the Prescott City Council discussed and moved to approve Resolution 37-24, which establishes a water property tax equivalent for the city's water utility. This resolution is crucial as it aligns with Wisconsin state statutes that permit municipalities to operate their own public utilities while also requiring them to make a payment in lieu of taxes (PILOT) to the general fund.

City officials explained that this payment compensates for property tax revenue that would have been generated had the utility been privately owned. The funds are essential for covering various municipal services, including police and fire protection, as well as road maintenance. Currently, Prescott has been contributing only 35% of the potential PILOT amount since 2010, which has helped keep water utility rates lower for customers.

The council noted that the average payment over the past five years has been approximately $38,107, while the full PILOT based on that average would amount to $108,878. The resolution is necessary to comply with requirements from the Wisconsin Public Service Commission, which has not seen a similar resolution since 1997.

Following the discussion, a motion was made and seconded to approve the resolution, marking a significant step in ensuring the city's water utility aligns with regulatory expectations while maintaining financial support for essential services.