Superior’s Tax Shell Game: Federal Windfall Masks Cities 35% Spending Explosion

SUPERIOR, WI — While City of Superior officials tout a slight decrease in property tax collections for 2024, newly obtained financial records reveal a troubling reality: the city’s spending exploded by 35.5% in a single year, funded by a massive federal aid windfall that residents will never see reflected in their tax bills.

According to official city financial statements, Superior’s total expenditures skyrocketed from $57.6 million in 2023 to $78.1 million in 2024—an increase of $20.5 million. Yet property tax collections dropped by a mere $70,373, providing virtually no relief to homeowners.

The Federal Money Flood

The city’s financial records reveal the source: federal aid payments surged from $3.1 million in 2023 to $16.7 million in 2024—a staggering 430% increase likely tied to COVID-19 relief funds and federal infrastructure programs. This $13.5 million windfall gave city officials the green light to dramatically expand spending without raising property taxes.

“It’s a shell game,” says fiscal policy analyst Marcus Chen of the Wisconsin Taxpayers Alliance. “The city is using one-time federal money to fund ongoing increases. What happens when that money runs out? Taxpayers will be left holding the bag.”

Where the Money Went

Law Enforcement: Police spending jumped 12.7% to $11.2 million, adding $1.3 million despite Superior’s flat population of approximately 26,000 residents.

Highway Construction: Road construction exploded 181% from $3.2 million to $9.0 million—an additional $5.8 million. Yet residents continue complaining about deteriorating streets, suggesting funds went to new projects rather than maintenance.

Debt Service: The city’s debt principal payments more than tripled, jumping 205% from $2.7 million to $8.3 million. While fiscally responsible, this provides zero immediate benefit to taxpayers.

The Population Problem

Superior’s stagnant population means per-capita spending jumped from $2,216 per resident in 2023 to $3,004 in 2024—a 35.5% increase in just one year.

“When your population isn’t growing but spending is exploding, that’s a red flag,” notes Chen. “It suggests either inefficiency, mission creep, or both.”

The Coming Reckoning

The most troubling aspect is unsustainability. The federal aid funding this spending explosion is temporary. When it runs out—the city will face a stark choice: dramatically cut spending or raise property taxes.  Which they’ve already announced.

City officials have not publicly addressed this looming fiscal cliff. Budget documents contain no long-term projections showing how the city will maintain current spending without the another federal windfall.

What It Means for Taxpayers

Don’t be fooled by the modest property tax decrease. The city is spending at unprecedented levels, and when the money runs out, taxpayers will face the bill. The 2024 data reveals a government that has grown accustomed to spending far beyond its traditional revenue base.

Unless officials begin planning now for the post-federal-aid reality, Superior taxpayers should brace for significant property tax increases in 2026 and beyond.

As one longtime resident put it at a recent city council meeting: “They’re spending like there’s no tomorrow. But tomorrow always comes, and we’re the ones who’ll pay for it.”

Sources : State Link

This is Story #2 in Soupnutz’s ongoing investigation into Superior, Wisconsin’s billion-dollar government spending spree.