Water commission flags project timing, shifts major costs to stormwater utility in preliminary 2027 budget

At its July 15 meeting in Middleton, the Water Resource Management Commission reviewed a preliminary 2027 budget that shifts several water-resources capital items into the city’s stormwater utility account and delays selected expansions while staff resolves staffing and funding questions.

Staff member said the draft holds many items from prior years but that some projects previously in the water-resources budget have been moved into the stormwater utility because those funds exist there. “A lot of this stuff is just carried through for previous years. I did highlight specific things that I have moved up or moved around,” the staff member said.

The presentation called out an accelerated timeline for Confluence Pond dredging design and identified possible spoils-disposal savings if a nearby sandpit is available — but staff said testing and DNR disposal criteria must be met before any material is moved. Tom Berndahl, the Conservancy Lands Committee liaison, described long experience restoring Pheasant Branch Conservancy and supported careful spoil handling.

Staff presented operating-budget context: roughly $1,400,000 in annual operating costs and a seven‑year net capital-plus‑operating projection of about $6,100,000, which the staff estimated would leave a cash balance above $700,000. The presentation also included a $500,000 federal grant tied to the Greater Greenway project and an estimated local match of about $150,000; staff said reimbursement rules and final match amounts will be confirmed before the next meeting.

Commissioners pressed staff on where previously appropriated funds were rolled — and whether the stormwater utility can legally or practically pay for certain storm-sewer work tied to road reconstruction. Staff said the rate study explicitly excluded paying for storm sewers associated with road construction; covering those costs would require a referendum to raise utility rates.

Staff warned that two recent retirements in public works reduced engineering capacity and recommended pushing several capital projects back one to two years to match available staff. Commissioners asked staff to return in August with updated costs, spoil-disposal testing results and a refined schedule for the Confluence Pond design.

The commission did not take a formal vote on the budget at this meeting; staff will bring a revised package to finance for the next step.