WAUPUN — Wisconsin’s highest Court has struck down the controversial Transportation Utility Fee as unlawful. This comes after long-time controversy across the state and in Waupun.
The logic behind adopting the TUF was that the township of Buchanan required more funding for local roads but leadership did not believe that a referendum would pass, and a primary selling point was that the TUF would be temporary until the major roads were repaired.
A number of other municipalities adopted similar plans after realizing that it could be used to circumvent tax levy limits set by the State, but the State of Wisconsin quickly noticed the trend and immediately condemned it as being illegal under state law.
The Wisconsin State Legislature proposed a number of bills to close the loophole, and now the Wisconsin Supreme Court ruled that TUFs are unlawful in Wisconsin. Now municipalities such as Buchanan will be forced to find alternatives to cover costs.
Waupun could be in the same boat if they had gone in the same direction last year.
In late 2021 and early 2022 the Waupun City Council was considering adopting a Transportation Utility Fee as a way to supplement the municipal budget and cover road maintenance costs. Waupun under then-mayor Julie Nickel hired consultants to explore Waupun’s options for increasing tax revenue, including a recommendation to adopt the TUF to cover road maintenance costs, one of the City’s highest costs.
The TUF plan caused some controversy from Waupun residents and members of the business community, as they expressed concern that they would be unfairly taxed for owning vehicles in the city.
Considering both local opposition and growing opposition from the state, the City ultimately decided against adopting the TUF plan.
“Waupun likely dodged a bullet. Waupun was moving swiftly to approve a Transportation Utility Fee in 2021 until I campaigned against it and won,” Mayor of Waupun Rohn Bishop said in a statement. “It wasn’t easy, but with the help of several small business owners, we killed the TUF.”
At the time, Bishop served as 5th District Alderman and was in the process of running for mayor. Along with city branding, Bishop’s opposition to the Transportation Utility Fee was one of his primary campaign issues.
“After becoming Mayor, we changed directions. Instead of trying to create a convoluted utility fee on small businesses, we lobbied the legislature for more aid. Both shared revenues and Transportation aid,” Mayor Bishop said. “Had we moved forward with the TUF, we’d likely be in the same mess as Buchanan is today.”
“Instead of a convoluted new utility, Waupun forcefully, and politely, lobbied our legislators about the needs for more revenues,” Mayor Bishop posted in a tweet Sunday morning. “The budget helps Waupun, and we saved our small businesses thousands of dollars. I’m calling this a win for Waupun!”
The Wisconsin Legislature passed the 2023-2025 State Budget last week, which will increase shared revenue to local municipalities and benefit cities like Waupun.
