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D6 Items of Interest Week of July 22, 2024

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At Finance Committee on Monday, there is a resolution to authorize a referendum for $22M. Many people are asking how we incurred this debt.  Please take a look at this 2025 Budget Overview. It provides a lot of information to help explain the question but basically our operating budget “expenses” (mostly personnel and related costs but also the cost of community programs and basic services) cost more each year than the “revenues” the city receives.

Prior to 2012, state levy limits had a 3% floor for increases but since the changes initiated by Gov Walker in 2012, it is 0%. Getting the state to change the limits is a few years out but thanks to redistricting there is a chance it could happen. The Overview (page 8) shows all the strategies the Mayor and Council have used to balance the budget since 2012 but 2025 is a precipice due in part to the pandemic’s impact and loss of federal recovery assistance.

Yes, we are building new housing to meet the demand of increasing population growth, but the additional new property taxes do not cover the costs of services for new residents. Madison’s share of the property tax bill is 35%, the rest of the property tax bill is shared with the county, school district, and Madison technical college. State law limits the sources of city revenues: the state levy cap limits property tax increases to “net new construction”, we don’t have a local income tax or local sales tax, and our share of state shared revenues is small ($29 per resident and the municipal average is $129 per resident). We rely on property taxes for 70% of our revenue.

Yes, in 2023 we had an unexpected windfall of $31M in interest income from investments which we added to our rainy day fund. We can use this money, either one time or over many years, but it is not a guaranteed revenue stream, it is considered one time money.

Yes, the school district is asking for $600M referendum and it’s a lot of money. Alders are hearing from residents about their fears of getting priced out of their homes. We know it’s a big ask if the city and MMSD ask for money but there is so much need and our local funding mechanisms are broken. Schools and municipalities are being squeezed by state policy that wants to shrink local government.

Yes, the State of Wisconsin has approximately a $3.25B surplus. Did you know that? If the referendum fails we will have to cut positions and services while the State of Wisconsin is sitting on billions of dollars. That money needs to be redistributed to taxpayers and local governments so we can provide the services our community values. Please vote August 13!

The Overview, on pages 17 and 18, shows two scenarios: projections over 5 years with and without a referendum. Both scenarios use $25M of the rainy day investment income windfall (called fund balance in the chart). With a referendum, Madison will avoid significant cuts to services while minimizing new special charges in future years.

I believe another potential referendum scenario should be put on the table for discussion. It would be to put up to $10M of the Urban Forestry and Resource Recovery special charge back onto the property tax bill which would reduce the amount of the monthly municipal services bill. You would pay the same amount more or less but the property tax is less regressive and higher value properties would pay more and potentially some taxpayers might pay less. It would require increasing the amount requested for the referendum. If we also added $5M from the rainy day fund starting in 2025 to our calculation to offset the increase, the referendum request in my scenario would be $27M ($22M gap + $10M special charges put back on the levy and commit to apply $5M from rainy day fund to offset for next 5 years). I don’t have all the details worked out but I think it is worth investigating. Eventually, along with efficiencies/revenue adjustments, we may need to rely on using special charges including the new infrastructure special charge even if the referendum passes but my scenario could push that out a few more years.

The final pages of the Overview provide a timeline for the budget process though the fall. In the next 10 days, Finance will post the agency operating budget proposals with 5% cuts requested by the Mayor.  Please stay tuned for more district budget conversations.

I will be on vacation next week and may be delayed in blogging... I plan to spend time soaking up the beauty of northern Minnesota and Lake Superior.

Boards, Commissions, and Committee Meetings

13. 84443 Authorizing the Scheduling of a Referendum Relating to Exceeding the Municipal Property Tax Limits in the City of Madison

The resolution authorizes a permanent increase to the levy limit of $22 million, effective for the City's 2025 budget (January 1, 2025 to December 31, 2025), and property taxes levied by the City in December 2024 and collected in 2025.  The purpose of the increase would be to fund police, fire, garbage collection, parks and library operations and other City services and operations.  The cost-to-continue current services is estimated to exceed allowable revenues under state law by $22 million.  The total allowable levy for 2025 under state law is $296.2 million, which reflects the net new construction factor calculation and estimated debt service.  The estimated net new construction factor used in calculating that total allowable levy is 2.5%.  The total allowable levy for 2025 is an estimated 3.4 percent ($9.7 million) increase over the actual 2024 property tax levy.

Based on preliminary figures, the $22 million included in the resolution would add 7.4% to the allowable increase in the property tax levy, for a total increase of 11 percent ($31.7 million).  The $22 million increase adds approximately $240 annually to taxes on the average value home, or approximately $20 per month, or 0.66 cents per day.

Final numbers will be added via a substitute amendment to the resolution after August 15th and prior to the Council meeting scheduled for August 20th.

  • Board of Health for Madison and Dane County: The Board of Health for Madison and Dane County meeting will take place on Tuesday, July 23, in virtual format at 5:30 p.m. Agenda items include accepting funds for the WIC program, accepting funds for the evaluation of harm reduction strategies, and accepting funds for the Maternal Child Health program.
  • Board of Public Works: The Board of Public Works meeting will take place on Wednesday, July 24, in virtual format at 4:30 p.m. Agenda items include awarding a Public Works contract to complete the Warner Park Community Recreation Center expansion project.

If you would like more information about becoming a member of a City board, commission, or committee, please visit the page linked here.

Government Resource Guide: The Government Resource Guide on the Common Council website. This guide provides an overview and key information for city government, the Common Council, and Boards, Commissions and Committees. It also includes a directory to access information for each agency (Department/Division) in the City, including mission statement, agency contacts, and links to each agency webpage.

Note: This is not a complete list of meetings for this upcoming week. All meetings and their details can be found at the Meeting Schedule page.

Public Information Meetings

  • Pennito Creek Watershed Study, Thursday, July 25: The City of Madison is completing a watershed study in the Pennito Creek watershed (as shown below). City of Madison engineering staff are completing this detailed modeling effort to identify causes of existing flooding and then look at potential solutions to try to reduce flooding. The study will use computer models to assist with the evaluations. A public information meeting is scheduled for 6 p.m., July 25, 2024, via Zoom. Registration prior is required.

News & Announcements

Events

  • Public Safety Summit, Tuesday, July 23: Madison Police Department staff and other community leaders are hosting a Public Safety Summit. The goal of the summit is to understand current safety trends in our city and the strategies employed to prevent crime. Panelists will discuss opportunities for collaboration to enhance safety in Madison.
  • Learn to Standup Paddleboard, Tuesday, July 23: Learn to Standup Paddleboard with Madison Boats! Register online for this free class offered at Marshall Park. Beginners will learn basic information about equipment and proper technique. After a few demonstrations, participants will learn how to balance with a chance to practice their new skills!
  • Last day to register to vote online or via mail, Wednesday, July 24: After today, here are your options for registering to vote:…
  • Capitol View Farmers' Market, Wednesday, July 24: The Capitol View Farmers' Market is held weekly on Wednesdays (3:00-7:00pm) from late May through mid-October. Join us each week for great local vendors, live music, food carts, and special activities from week to week. Visit our website and follow us on social media for the most up-to-date information and schedules!
  • Live at The Glen: DJ Pain 1, Friday, July 26: Madison Parks Foundation is proud to present Live at The Glen! Enjoy music on the patio at The Glen Golf Park. DJ Pain 1 is performing for the Live at The Glen on July 26. DJ Pain 1 is a multiplatinum producer and DJ whose production credits include Jeezy, Ludacris, Rick Ross, Lil Baby, 50 Cent, Public Enemy, Meek Mill, 2 Chainz and many more.
  • Movie in the Park, Saturday, July 2: Join Downtown Madison's Business Improvement District (BID) and Madison Parks for a free movie in Peace Park! Dungeons & Dragons: Honor Among Thieves (2023), PG-13 • 2h 14m. Rain date: Sunday, July 28

Parks Alive Dates!

Parks Alive builds stronger neighborhoods and connects neighbors to their parks through fun, family-friendly activities, music and free food. Events are held in parks across the city and throughout the summer. Connect with your neighbors and engage with your community at a Parks Alive event near you! Events start at 5:00 p.m.

Please find additional upcoming City of Madison Parks events listed on the City parks event calendar.

Additional upcoming events can also be found on the City events calendar. 

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District 6 - Alder Rummel

Alder Marsha Rummel

Alder Marsha A. Rummel

District 6
Contact Alder Rummel