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Engineering presents FY2027 plan emphasizing sewer capacity, stormwater improvements and corridor grants
Summary
City Engineer Gus Psihoyos told the Dubuque City Council the Engineering Department’s FY2027 budget focuses on sanitary sewer capacity upgrades, stormwater projects (including the 17th & West Locust reconstruction), and multi-modal corridor grants such as the $18.5M BUILD and RAISE awards to leverage federal funds.
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City Engineer Gus Psihoyos presented the Engineering Department’s proposed fiscal year 2027 budget, outlining a mix of ongoing capital projects, stormwater improvements, and grant-driven corridor work meant to reduce flooding, increase sewer capacity and support multimodal transportation.
Psihoyos opened by reviewing department staffing and recent retirements, then highlighted completed projects including Heeb Street reconstruction ($669,200) and the JFK/32nd intersection ($585,000, largely developer-funded). He described the Old Mill Lift Station expansion—Phases 1–4—to provide 20 million gallons per day of capacity (expandable to 30 mgd) to support future flows and growth.
On sanitary sewer priorities, Psihoyos said Phase 3 work in the Catfish Creek sewershed will increase interceptor capacity by roughly 1 million gallons per day and lower pipe invert depths by about 10 feet in places to reduce wet-weather overflows. He summarized other FY27 sanitary projects included in the five-year CIP and described design work for the Track Line Sanitary Sewer Project.
Stormwater work centers on the long-running Bee Branch watershed efforts and critical reconstruction of 17th & West Locust, where staff propose replacing the existing system with a 10-by-6-foot concrete box capable of conveying a 25-year storm event. Psihoyos said that phase will provide meaningful neighborhood relief and is intended to extend toward Rosedale Avenue in future years.
On transportation, Assistant City Engineer Bob Schiesl outlined the proposed East–West corridor capacity improvements along University Avenue, including roundabout conversions at several intersections. The city submitted an $18.5 million BUILD grant request; the FY2027–31 proposed budget allocates $4.1 million as the local 20% match if the federal award is made.
Schiesl also described the federally funded RAISE planning and capital awards advancing the Building Bridges to Elevate Employment (B2E2) multimodal corridor. The combined RAISE funding totals roughly $43.1 million when planning and capital awards are included, with the city budgeting local commitments and partner contributions.
The presentation noted ongoing planning on US20/Northwest Arterial intersection improvements and rail crossing safety work. Staff said previous FRA grant applications were unsuccessful and estimated $3.7 million is required to bring downtown crossings up to the minimum safety improvements needed to pursue a quiet zone designation.
In response to council questions, staff explained how major stormwater projects require coordinated funding across stormwater, water, sanitary and street budgets and emphasized the need to partner with railroads and other agencies to make grant applications more competitive.
The department also identified operational needs—including maintenance and facility HVAC improvements for the Historic Federal Building (budgeted at $6.5 million, with a FY27 impact of about $1.3 million)—and highlighted revenue-generating items such as riverfront lease rent (about $4.3 million) and wharfage ($175,000).
Councilmembers thanked staff and asked for follow-up details on staffing, consultant costs, and the specific funding assumptions behind the stormwater fee projections.

