Community band fee waiver tabled as Rhinelander city council seeks policy tune-up

One of many items on the Nov. 10 Rhinelander city council’s meeting agenda was that of a fee waiver request. The council had previously decided to not entertain fee waiver requests. At a previous meeting, police chief Lloyd Gauthier had spoken against fee waivers during public comment. With the recent cuts departments such as his had had to make to their budgets, he said he felt the city should not entertain any requests for fee waivers.

City administrator Patrick Reagan said he was instructed to bring the matter of fee waivers back to the council together with the Rhinelander Area Community Band’s request for a fee waiver. 

Alderman Bob Lueder said he wanted to discuss the matter of event fee waivers one more time. He said the matter continued to come up in meetings and the council had tried to pick and choose the entities that would and would not receive a fee waiver. He felt there was not transparency as to how those decisions were being made. He hoped to adopt some type of general plan moving forward.

Alderman Steven Jopek said he was in agreement. He felt the city could create a fund from which groups that fit within the fee waiver agreement in the packet could draw. He said he would like to see some part of the increase in the room tax allocated for that purpose. Room tax will be going up from 5.5 percent to 7 percent in 2026.

“We shouldn’t just kick all these non-profits down the road,” he said. “Things like the city band are valuable to our culture and to our city. But, at the same time, we have a budget to balance.”

Alderman David Holt said he agreed, stating the optics of the situation did not look favorable. He wanted to see a set policy so there was transparency and fairness, and also fiscally responsible given the city’s tight budget. He said there needed to be consistency in waiver of fees.

Alderman Gerald Anderson said there was policy in the packet received by the council. He said the two that were most important, in his mind, where the need to show the fee would be a financial burden it places on the city and the financial condition of the organizers of the event. He said he would like to see everyone pay an application fee for holding an event at the very least. If there was a good way, such as the room tax, to pay for these fees for the organizers, he would be all for that. Another option, he said, would be for the city administrator to talk with organizers to determine what they may be able to pay. 

Hanus said there was already a contract in place with the room tax committee at the Rhinelander Area Chamber that would absorb 70 percent of the increase in room tax revenue. That said, the city’s local portion of that room tax would be 30 percent of the 1.5 percent increase in room tax. He said that pot of money was also unknown, as there was uncertainty around whether that increase would affect the number of hotel stays in the city.

“I’m a little concerned about allocating an unknown fund source, at this point, for something like this,” he said. 

City attorney Steve Sorenson said the city, by statute, could not take money from the room tax and create a fund such as this. The statute said there were certain discretionary uses for those funds, but the funds have to be used each year. A fund such as the one being talked about would have to come out of the city’s general funds. The room tax could be used to offset municipal costs, but the city could not create a sinking fund with room tax dollars. 

Hanus said the reason things were set up the way they are now was to create some sort of transparency in understanding who was coming to the council to request a fee waiver. From the standpoint of cost to the taxpayer, he said, people, who were paid by the hour, sitting in meetings where this issue came up repeatedly, was an issue in his mind. Given that, he said he would almost prefer to see a policy that said the fee is what it is. He asked the clerk Austyn Zarda to read the city’s mission statement as a way for council members to get a better idea of the direction they should take.

Lueder said the amount, since 2018, the revenue equated to approximately $2,500. He said he would like to see a not-for-profit fill out the paperwork to let the city know an event would happen, but he was in favor of a policy that would see those entities not pay and be able to host those events that benefit the community and fit with the city’s mission statement.

Hanus said he did not think it was so much the revenue amount collected that was in question, but the revenue being left on the table in fees that had not been collected over the years. If the fees and fee ordinance schedule were enforced, that amount would be a good deal more. At the same time, he did not feel the amount was substantial, compared to the city’s budget. He said he did see the value, however, in having those entities fill out the paperwork. He also said there was some traction with administration with the idea to waive fees for one day events but then have more of a rental agreement arrangement with organizers of events that spanned multiple days.

Alderperson Carrie Mikalauski said the amount waived in fees and labor in 2025 was over $17,000, which she felt was substantial for a year. She wondered if there was a possibility of a max dollar amount that could be waived, as an idea.

After a lengthy discussion, Hanus asked whether there would be support to take the city’s 30 percent of the room tax increase to support the city’s parks. Then, that same dollar amount could reduce the need on the general fund that waivers were costing. Anderson said this would bring the fee down to some level that may or may not be above zero. The room tax amount, he said, could be used to take care of a budget issue that was related to tourism and tourism activities, so this would be an acceptable use of those funds. 

“I think we’re still making it too complicated,” Hanus said. He said he would like to see no fees for any organizer, and the general fund would then be made whole through room tax. 

Mikalauski said she felt this should be handled administratively. Once that was completed, it could then come back to the council for approval. Reagan said he understood the city wanting to keep events, and he also understood that there were costs being incurred with these events. He also mentioned the budget being tight and departments having to cut their budgets while some event organizers received fee waivers. He said he could see both sides. 

“Sometimes the answer is just no,” he said. “Sometimes the answer is the fee is the fee. That’s my two cents on it.”

Holt said it came down to whether or not the city wanted to subsidize events. The secondary question would be by how much. Then it would come down to how to do this. 

Hanus said it was the council’s job, not the administration’s job to set policy. Without some direction, he would direct staff to do nothing. 

Mikalauski motioned to have a subcommittee that would take this up and bring their proposed solution back to the full council. The committee would be made up of two alderpersons and administration. Aldermen Jopek and Thomas Barnett will sit on the committee. This motion passed unanimously.

The matter of the Rhinelander City Bands’s fee waiver was motioned to be tabled until the fee waiver policy was set.

Public Hearings

The city council also held a public hearing on the city’s budget. Multiple budget hearings had been held, and city finance director Wendy Bixby was present to answer questions. The public hearing was closed after there was no public comment made. The city’s 2026 budget was a balanced budget, according to Mayor Kris Hanus.

The next public hearing concerned vacating a portion of the Navajo Street right-of-way, a matter previously brought before the council. No public comment was offered. After posing the question three times, as required, Hanus closed the hearing. The council approved the vacating measure later in the meeting.

Other public comments

Holt spoke at this week’s meeting in the public comment section of the meeting. He said he would not run for another term, and wished to give anyone else looking to run in his district ample time.

“I do want to say it has been an honor and a pleasure to serve the city and the community,” he said. “I’m proud of where the city is now when I first sat in that chair, and I would like to assure anybody thinking of running, I’m pleased to say, that you will probably be much more comfortable, and I’m not referring just to the changing of the furniture.” He said it had to do with all of the others with whom he had been serving, and wanted others to appreciate the work that had been put in.

Alderman Bob Lueder said he wanted to take a moment to wish any Marines in the room or listening a happy 250th anniversary and a Happy Veterans Day to all the veterans the next day.

Beckie Gaskill may be reached via email at [email protected].