By David Murchland
Marshfield,WI - The Marshfield Utility Commission on Tuesday debated how to manage excess revenue from its dark fiber utility while advancing new governance policies aimed at long-term financial stability and leadership continuity.
Commissioners reviewed a revised draft of a cash reserve policy for the dark fiber utility, which sets targets for maintaining adequate reserves while allowing flexibility to respond to market conditions. The policy is intended to balance financial security with potential community investment, commissioners said.
Staff explained that the draft emphasizes maintaining a benchmark cash reserve tied to the replacement value of the system while preserving the commission’s ability to conduct market rate analyses when appropriate. The approach is designed to avoid frequent rate changes while still giving future commissions discretion.
Several commissioners said the policy does not clearly address funding for the commission-designated or economic development fund. Some argued the utility’s strong financial performance presents an opportunity to direct a portion of profits or interest earnings toward community projects.
“This is an opportunity for us to do community good,” one commissioner said, suggesting the policy explicitly outline how excess revenue could be used to support local initiatives.
Others cautioned against committing to fixed funding formulas without knowing future financial needs. Commissioners discussed whether excess funds should be used for community projects, returned to customers through lower rates or transferred to the city through dividends.
Staff noted that the dark fiber utility is unregulated, giving the commission flexibility in how surplus revenue is allocated. Any decision, they said, should account for long-term replacement costs and the risk of overcommitting funds.
The commission also reviewed a draft policy governing the role of an interim general manager, intended to ensure business continuity during leadership transitions. Commissioners generally supported the proposal, saying it provides clear authority and limits without being overly prescriptive.
The policy outlines responsibilities, delegation authority and communication expectations during interim periods. Commissioners discussed compensation practices and the importance of clarifying that interim appointments are temporary and do not permanently alter an employee’s role or salary.
In other business, the commission approved two capital projects, including an overhead-to-underground electrical conversion and a floodlight replacement project. Both projects came in near their budgeted amounts.
The commission also approved payment of bills and payroll and adopted minutes from its previous meeting.
Commissioners voted to enter closed session to discuss personnel matters related to the general manager position, as well as negotiations involving power purchase agreements and land lease agreements.