Fiscal Note
The proposed resolution amends the 2023 Water Utility Capital Budget by authorizing an additional $2,875,000 of budget authority across various major water main projects and pipeline program budgets in accordance with Madison Water Utility’s 2022 Rate File Authorization: 3280-WR-116, issued by the Public Service Commission (PSC) of Wisconsin. The additional budget authority adjusts existing active project budgets to reflect current revisions to the project scopes, estimates, or schedules since the adoption of the 2023 Water Utility Capital budget.
The PSC approved $5 million of funding for the Utility’s main replacement program per year. These rates will be effective March 1, 2023 so the Utility will receive $4,166,667 of cash funding for main projects in 2023.
Project costs will be funded through the existing Utility Construction Fund balance and/or Utility cash reserves which in turn will be replenished by the additional revenue received from the rate case approval. No increase in Utility debt obligations or new Utility borrowing is anticipated as a result of these new projects and/or the proposed additional budget authority. The Utility’s estimated Construction fund balance at December 31, 2022 is $6.6 million and the estimated unrestricted cash balance is $5.8 million.
The 2023 Water Utility adopted Capital budget will be amended to reflect the following additions:
13924 - Hammersley Road Resurfacing w/Utilities Phase 2: $ 780,000
11127 - Atwood Avenue (Fair Oaks to Cottage Grove): 310,000
11168 - University Ave (Shorewood to University Bay): 80,000
13893 - Treetops/Feather Edge Drive (new street): 220,000
14082 - Lake Mendota Dr Phase 2: 195,000
13170 - Davies St & Dempsey Rd Reconstruction: 115,000
13810 - Ohmeda Dr (new street): 235,000
14164 - WATER MAIN REHAB PIPE LINING 2023 (new Fish Hatchery Rd project): 625,000
14160 -...
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