10/09/2024 | Press release | Distributed by Public on 10/09/2024 20:13
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:
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.