Title
Amending the 2026 Water Utility Capital budget to include $1,635,000 of additional budget authority to the Unit Well 12 Reconstruction project (District 11).
Fiscal Note
The proposed resolution authorizes amending the 2026 Adopted Water Utility Capital Budget by authorizing an additional $1,635,000 of budget authority to the Unit Well 12 Reconstruction project (Munis #10452). The proposed additional $1,635,000 in budget authority would increase the project's revised budget authority to $10,000,917.
Project costs up to $8,000,000 will be funded through low-interest 20-year Safe Drinking Water Loan Program loan offerings issued by the Wisconsin Department of Natural Resources. The Madison Water Utility is concurrently requesting additional loan budget through the Safe Drinking Water Loan program to cover the anticipated increase in project expenses. In the event the Safe Drinking Water Loan budget is unable to meet the requested budget increase, the Water Utility anticipates uses existing Utility Construction Fund balance and/or Utility cash reserves will cover all project costs more than $8,000,000.
There will be no increase in water rates to Water Utility customers as a result of this proposed budget amendment.
Body
WHEREAS, Madison Water Utility Unit Well 12 supply and water storage facility in its existing condition is severely deteriorated, undersized and water storage capacity are unable to meet current demands; and
WHEREAS, Madison Water Utility has committed to rebuild the existing well, pump station and reservoir facility on its existing site and has commissioned design & engineering services to prepare construction plans, specifications and has secured a Public Works bid to reconstruct the facility in 2026 and 2027 (pending City of Madison Public Works Contract 9740); and
WHEREAS, Madison Water Utility has received Construction Authorization from the Public Service Commission of Wisconsin (PSC Ref 3280-CW-125), Wisconsin Department of Natural Resources (DNR Ref W-2025-0627) and secured at least $8,000,000 in low interest loans from the Wisconsin Department of Natural Resources Safe Drinking Water Loan Program, with current requests for additional loan budget in support of the project; and
WHEREAS, current and competitive bids have been received and authorized for award, which have established current project costs to be higher than originally anticipated when the original project budget was project in the year 2025; and
WHEREAS, based on known current construction costs for the proposed project, Madison Water Utility is requesting additional budget authority to cover all anticipated project costs, which will either be further funded by an expanded Safe Drinking Water Loan Program low-interest loan or Utility cash reserves; and
NOW, THEREFORE, BE IT RESOLVED that the 2026 Water Utility Capital budget is hereby amended to authorize an additional $1,635,000 of budget authority to project 10452-86-140, which is required to proceed with the 2026-2027 reconstruction of Unit Well 12, as described herein.
Memo - MWU 26 Capital Budget Amendment - Unit Well 12 Reconstruction Project - April 2026.pdf