City of Madison, WI
City of Madison, WI
10/09/2024 | Press release | Distributed by Public on 10/09/2024 20:13
2025 Executive Capital Budget to Support Growing City
Today, Mayor Satya Rhodes-Conway released her 2025 Executive Capital Budget and 6-Year Capital Improvement Plan (CIP), which detail her funding proposals for streets, parks, bikeways, public buildings, water and stormwater systems, and other public assets in Madison. The Capital Budget is one major piece of the City's budget. In October, the Mayor will introduce her 2025 Executive Operating Budget, which focuses on services, staffing and programs.
"Madison's vibrancy and economy rely on the infrastructure and services the City provides every day," said Mayor Rhodes-Conway. "Capital investments in our streets, parks, bikeways, libraries, and other infrastructure create the safe and healthy neighborhoods we live in, maintain our environmental quality, and underpin the mobility and economic vitality of our city. That is what my capital budget delivers on. It invests in our critical infrastructure to help keep our neighborhoods safe and our economy strong."
While the City's operating budget faces a structural deficit due to unrealistic constraints in revenue placed on Wisconsin cities from the State Legislature, its capital budget has different funding sources to finance capital projects (versus everyday services, which are funded by the operating budget). Funds in the capital budget cannot be used to fund the costs of everyday services to residents in the operating budget.
The State Legislature has not placed strict limits on capital budgets, which allows the City to deliver the infrastructure to meet the needs of a fast-growing city, and as always, do so in a fiscally responsible manner to help support efficient operations, maintain the City's financial health and save taxpayer dollars.
The results of the City's longstanding reputation for responsible budgeting are clear. Madison's debt service as a percentage of the total budget has remained steady and is slightly below 2019. General Obligation borrowing for 2025 is proposed to be $12.4 million lower than in 2024, and reduced by $5.3 million for the six-year span of the Capital Improvement Program. The City benefits from a Aaa (triple-A) bond rating, allowing us to borrow money at very low interest rates.
The Executive Capital Budget also pays close attention to minimizing the burden on taxpayers. The 2025 proposed budget is $24 million lower than what agencies requested, and $12.3 million lower than the 2024 adopted budget. The budget also supports projects that help the City realize operational efficiencies over time to minimize the impact on taxpayers of supporting a growing city. Examples in the Six-Year Capital Improvement Program include:
- Constructing a South Point Road Public Works Facility on the far west side to manage growth, better serve the rapidly growing west side of the City and dramatically reduce driving time and vehicle trips to and from the current centrally-located facility. Garbage trucks, snow plows, lawn mowers, street sweepers, and other vehicles that serve west side neighborhoods will soon be located on the west side of Madison, saving hundreds of hours in drive time and roughy half a million dollars in fuel costs each year. It will also provide storage space for vehicles as our city grows.
- Co-locating the South District Police Station with a property and evidence storage facility to meet our growing storage needs, better serve the public, and allow for operational and staffing efficiencies by centralizing work that currently takes place in multiple facilities.
- Taking the opportunity of needed stormwater upgrades on Regent Street, we are replacing all the aging infrastructure at once, creating efficiency in construction which saves money and reduces the burden of construction on the neighborhood.
The City also reduces taxpayer impacts by aggressively pursuing grant funding to support capital projects. Since 2020, the City has secured $563.9 million in federal and state funding to support improvements in Madison and bring more money to our local economy.
The Mayor's Executive Budget will be discussed at City Finance Committee meetings on September 16 and 17, with final Common Council action in November, allowing multiple opportunities for resident input. Full budget documents can be found on the 2025 Capital Budget website.