Fiscal Note
The proposed resolution amends the 2026 Adopted Water Utility Capital Budget by increasing the budget for the Unit Well 12 Reconstruction project (Munis #10452) by $2,000,000. The project budget is currently $8.0 million, which was approved in the 2025 and 2026 capital budgets. The estimated project cost has increased since the project was planned in 2025, and the Water Utility requires additional budget authority to complete the project.
The Water Utility is requesting a low interest loan through the Wisconsin Department of Natural Resources Safe Drinking Water Loan Program (SDWLP) to fund the increased project budget. If received, the project will be amended to reflect an increase in state funds from the SDWLP loan. The loan would be repaid over a 20-year period. If the loan is not received, the Water Utility will utilize its fund balance or cash reserves.
Title
SUBSTITUTE. Amending the 2026 Water Utility Capital budget to include $2,000,000 of additional budget authority to the Unit Well 12 Reconstruction project (District 11).
Body
EDITOR'S NOTE: The title of this legislative file has been modified as follows.
Title: SUBSTITUTE. Amending the 2026 Water Utility Capital budget to include $1,635,000 $2,000,000 of additional budget authority to the Unit Well 12 Reconstruction project (District 11).
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 $2,000,000 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.
BE IT FINALLY RESOLVED, that the Finance Director is authorized to adjust the revenue for project 10452 (Unit Well 12 Reconstruction project) to reflect the actual additional funding for the project (Safe Drinking Water Loan Program or Utility cash reserves).”
Memo - MWU 26 Capital Budget Amendment - Unit Well 12 Reconstruction Project - April 2026.pdf