MADISON, Wis. -- Dane County Executive Kathleen Falk said Friday that an agreement has been reached between municipalities to move forward with the slated reconstruction of University Avenue, with engineering work for the project to begin this year.

Dane County, the cities of Madison and Middleton and the village of Shorewood Hills have agreed on the project.

Falk said $350,000 is included in the 2009 county budget for the project.

The city of Madison will begin rebuilding and resurfacing work in March on University Avenue, from State Street to University Bay Drive. Madison will spend $6 million on the project this year, according to a news release.

The city of Madison will invest another $13 million in pavement management, street reconstruction and resurfacing other streets.

Falk said the engineering phase of the University Avenue (County Highway MS) project will include extensive planning along with opportunity for input from the public.

University Avenue from Segoe Road to Allen Boulevard is slated for reconstruction in 2011, according to the news release.

In addition to rebuilding the existing four lanes of road, the $7.2 million project will include new turn lanes and side walks along with curb and gutter work.

Falk said 80 percent of the project will be covered through federal funds. Dane County and the local municipalities will pay the remaining 20 percent.