New Utility Operations Facility
Posted: Wednesday, January 07, 2026
Stoughton Utilities has outgrown our current administration building at 600 S. Fourth Street, which is owned by the City of Stoughton and leased to Stoughton Utilities. To prepare for continued growth, Stoughton Utilities is in the process of designing a new utility operations facility, with final plans and cost estimates expected in spring 2026.
The construction of a new operations facility will provide the utility with the necessary space to accommodate future demands as the city grows. It will also enable the City of Stoughton to explore more effective uses for the existing utility administration building located along the riverfront, potentially attracting new businesses and generating additional revenue.Current Building
The current Stoughton Utilities Administration Building was built in 1945 as the King Edward Tobacco Co. Office. The building was purchased by the City of Stoughton, and Stoughton Utilities began leasing the space in 1995. The office space was last remodeled in 2008.
The current administration building is approximately 59,700 square feet including garage, storage, and office space, and is located on South Fourth Street next to the Yahara River. The building also houses the City of Stoughton Food Pantry and Stoughton EMS. Why a New Building?
The current Stoughton Utilities administration building no longer meets the needs of the utility. The construction of a new operations facility will provide the utility with the necessary space to accommodate future demands as the city grows. It will also enable the City of Stoughton to explore more effective uses for the existing utility administration building located along the riverfront, potentially attracting new businesses and generating additional revenue.
Storage Space
Additional storage space would allow us to store all materials at one location, instead of having materials stored at various locations throughout the city. We currently have materials stored at the administration building, in the parking lot, at the wastewater treatment plant, and at various substations and wells throughout the city. This complicates the handling, distribution, and inventory management of the materials and supplies needed for maintenance on our systems and takes additional staff time. A new operations facility will give us the storage space needed now and into the future as the city continues to grow. It will also allow us to keep additional materials on hand to negate the effect that increased delivery times have had on operations in the past.
Office Space
Wastewater staff currently have no space at the utilities administration building to report, so they report directly to the wastewater treatment plant each day. The current utility administration building also houses the City of Stoughton Human Resources & Risk Management team, and we have quickly run out of office space for staff. The new operations facility will give us the space we need for all staff to work efficiently and allow us to have all staff reporting to one location. The new operations facility will also give the City of Stoughton Human Resources & Risk Management team their own designated spaces for offices and meetings, allowing for more efficient and confidential handling of personnel and risk management duties.
Parking and Public Access
Parking at the current utilities building can be challenging, especially for those with mobility limitations. The closest parking for those coming to the utility office is in the street, and spaces can fill fast and be difficult to maneuver with snow accumulation on the curb. Adequate parking is likely to become more of an challenge in the next few years with the new apartments being built across the street. The new utility operations facility will have a dedicated parking lot large enough for staff and customers, as well as designated handicap parking stalls to ensure everyone has easy access to the building.
The current building also requires delivery trucks to back into our loading dock at the front of the building, often blocking traffic on South Fourth Street while they are backing up and unloading. This creates a hazard for the public in addition to being inconvenient for people using the street or sidewalk. The new facility will eliminate this by having a dedicated truck unloading dock that is out of the way of through traffic.
Community Development
The current utility administration building is owned by the City of Stoughton and leased to Stoughton Utilities. Since the utility is a city owned entity and is heavily regulated by the Public Service Commission of Wisconsin, the rent is tied to the depreciation schedule of the building instead of a fair market rent. With a new utility operations facility, the City will have the opportunity to explore more effective uses for the current building located along the riverfront, potentially attracting new businesses to the area and generating additional revenue for the city.
Safety and Security
The new building will provide better physical security by allowing us to keep public meeting spaces separate from critical systems that regulate and monitor your electric, water, and wastewater services. Additional indoor and outdoor storage spaces will allow equipment and materials to be secured and monitored to prevent theft. The lobby space will also be designed to provide better security for our office staff.
The garage space at the current administration building requires all trucks to back up in order to leave the garage, creating a risk of injury to staff and damage to the building and equipment. The additional garage space provided at the new facility will eliminate this risk by providing vehicles with pull-through parking spaces. It will also provide adequate storage solutions so staff are able to more safely and efficiently maneuver a forklift through the space.Customer Impacts
Over the next five years, utility rates are projected to increase as we invest in the infrastructure needed to keep your utility services reliable. Although the new operations facility is not the primary factor contributing to increasing rates, it is expected to have an impact on customer utility bills and has been included in our five-year rate projections. Individual cost impacts will vary based on services received, household size, and consumption patterns. Once the building design is complete and we have more specific cost estimates, we will provide additional information about rate impacts related to the new operations facility.Timeline
Updates
Monday, January 7, 2026
Stoughton Utilities staff is currently working with architects on preliminary designs for the new building. Final designs and cost estimates are expected to be complete in spring 2026. Additional Reference Materials
Utilities Committee and Stoughton City Council Meetings
All Utilities Committee Agendas, Packets, and Meeting Minutes can be found here. Stoughton City Council Agendas, Packets, and Meeting Minutes can be found here.- 9/30/2024 Utilities Committee discusses Facilities Needs Assessment, previews Stoughton Utilities 2025 Operating Budget, and approves Five-Year Capital Improvement Projects PACKET | MINUTES
- 10/8/2024 City Council discusses possible sale of 600 S. Fourth Street AGENDA | MINUTES | VIDEO [1:42:08]
- 10/17/2024 Utilities Committee approves 2025 Budget Approval authorizing funds for building design PACKET | MINUTES
- 10/22/2024 Stoughton Utilities 2025 budget presentation to City Council PACKET | MINUTES | VIDEO [0:09:28]
- 11/12/2024 City Council approves the Stoughton Utilities 2025 Budget and five-year (2025-2029) Capital Improvement Plan, Conflict Waiver regarding offer to purchase property at 600 S. Fourth Street, and discussion regarding the offer to purchase property located at 600 S. Fourth Street PACKET | MINUTES | VIDEO [2:07:28] [2:27:51] [3:24:20]
- 1/14/2025 City Council discussion regarding the offer to purchase 600 S. Fourth Street PACKET | MINUTES | VIDEO [1:20:10]
- 2/17/2025 Utilities Committee discusses Facilities Needs Assessment and authorizes staff to proceed with feasibility study and begin preliminary engineering PACKET | MINUTES
- 3/11/2025 City Council authorizes staff to proceed with feasibility study of constructing new Utilities Operations Facility and begin preliminary engineering and design PACKET | MINUTES | VIDEO [0:12:34]
- 7/22/2025 Yahara Bay Distillers presentation to City Council on plans for purchasing 600 S. Fourth Street PACKET | MINUTES | VIDEO [0:14:19]
- 10/20/2025 Utilities Committee approval of the 2026 Budget and 2026-2029 Capital Improvement Projects that includes the construction of a new operations facility PACKET | MINUTES
- 10/28/2025 Stoughton Utilities 2026 Budget Presentation to City Council PACKET | MINUTES | VIDEO [0:23:41]
- 11/11/2025 City Council approves the Stoughton Utilities 2026 Budget and Five-Year (2026-2030) Capital Improvement Plan PACKET | MINUTES | VIDEO [1:03:35]
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