Fiscal Note
The resolution establishes a $300,000 Williamson Street Business Stabilization program. The proposed funding sources are:
- $200,000 from Contingent Reserve
- $75,000 from underspending in the DPCED Office of the Director Budget
- $25,000 from underspending in the DPCED EDD Budget
The mid-year appropriation resolution (Legistar File 94055) included a projection of agency spending through the end of 2026. At that time, EDD was projected to underspend their total budget by approximately $25,000 from salaries, benefits, and purchased services. The resolution would transfer $15,700 in underspending in salaries and benefits to purchased services. The DPCED Office of the Director was projected to underspend their total budget by approximately $90,500 in benefits and purchased services. The resolution transfers $75,000 from DPCED Office of the Director to EDD.
The 2026 adopted budget includes $2,150,408 in contingent reserve that may be reallocated to various agencies throughout the year to fund unanticipated expenses or revenue shortfalls. Legistar file 92053 transferred $70,000 from contingent reserve to utilities to fund MadCAP, a comprehensive customer assistance program for the City’s municipal services bill. Legistar file 94055 transferred $100,000 to Engineering for a projected deficit in facility maintenance costs and $400,000 to the Clerk’s office for a projected deficit in purchased services and supplies for elections operations. The remaining balance is $1,580,408. If this resolution is adopted, $200,000 would be transferred to EDD, leaving a remaining balance of $1,380,408.
Title
Amending the 2026 Economic Development Division (EDD) Operating Budget by transferring $200,000 from contingent reserve and $75,000 from other agency budgets to EDD and authorizing intra-departmental transfers within EDD, approving program materials, and authorizing the Economic Development Division to administer a Williamson Street Business Stabilization Support Program (District 6).
Body
Editor’s Note: The file was introduced By Title Only. The title has been modified as follows:
Amending the 2026 Economic Development Division (EDD) Operating Budget by $XXX,XXX transferring $200,000 from contingent reserve and $75,000 from other agency budgets to EDD and authorizing intra-departmental transfers within EDD, approving program materials, and authorizing the Economic Development Division to administer a Williamson Street Business Support Stabilization Program.
WHEREAS, the City recognizes the need to provide temporary financial assistance to businesses experiencing economic disruption related to the closure of the Williamson Street and Baldwin Street intersection following the July 22, 2026 officer-involved shooting at this intersection; and,
WHEREAS, the proposed Williamson Street Business Stabilization Program is intended to provide short-term economic support to affected businesses while recognizing that the events surrounding the shooting have consequences that extend well beyond the business community; and,
WHEREAS, the City recognizes that providing financial assistance to businesses does not negate the loss of life, the impact on the family and community, or the broader systemic issues raised by the July 22nd shooting and the events that followed; and,
WHEREAS, community development programs, social services, and nonprofit organizations provide invaluable resources and support to our community, and addressing these broader issues requires a continued, coordinated, and long-term community response; and,
WHEREAS, City staff visited businesses on Williamson Street, attended business associations meetings, and gathered feedback from impacted businesses; and,
WHEREAS, many businesses have reported or experienced impacts associated with reduced access, changes in customer traffic, temporary closures, changes in operating conditions, increased costs, and other disruptions; and,
WHEREAS, a significant number of businesses near the intersection of Williamson and Baldwin Streets rely on customers visiting the business location for goods and services (retailers, restaurants/bars, hair salons, tattoo parlors, etc.); and,
WHEREAS, a sudden, unanticipated, and prolonged closure of this intersection resulted in a direct loss of sales for many of the businesses; and,
WHEREAS, this loss of sales challenges business owners with making payroll, paying inventory costs, and covering rent and other operating expenses; and,
WHEREAS, these small businesses play an important role within our local economy, providing services in the community, creating jobs, and strengthening Willy Street area neighborhoods; and,
WHEREAS, the City therefore desires to implement a Williamson Street Business Stabilization Program to assist the businesses most directly impacted by the prolonged closure of the Williamson Street and Baldwin Street intersection; and,
WHEREAS, a Williamson Street Business Stabilization Program will have the following goals:
• Provide timely assistance to businesses experiencing economic disruption.
• Support business continuity and employment by helping businesses manage temporary revenue losses.
• Prioritize small and locally owned businesses that may have fewer financial reserves to absorb an unexpected disruption; and,
WHEREAS, EDD has identified approximately 30 businesses that may be eligible, and recommends establishing the program with $300,000 of funding from the following sources:
• $25,000 from projected underspending within EDD’s adopted operating budget ($15,700 in salaries and benefits, $9,300 in purchased services),
• $75,000 from projected underspending from the DPCED Office of the Director’s budget, transferred to EDD
• $200,000 from the general fund contingent reserve, transferred to EDD.
NOW THEREFORE BE IT RESOLVED that the Madison Common Council approves establishing a Williamson Street Business Stabilization Program up to $300,000; and,
BE IT FURTHER RESOLVED, the Common Council amends EDD’s 2026 operating budget and approves transferring $200,000 from contingent reserve and $75,000 from DPCED Office of the Director ($40,000 in benefits, $35,000 in purchased services) to EDD’s purchased services budget; and,
BE IT FURTHER RESOLVED, the Common Council amends EDD’s 2026 operating budget by transferring $15,700 in projected underspending in salaries and benefits to purchased services; and,
BE IT FURTHER RESOLVED that eligible businesses for the Williamson Street Stabilization Program must meet the following two criteria:
• Be an existing business that experienced a loss of sales because of the Williamson Street and Baldwin Street intersection closure in July/August 2026.
• Be an existing business that has a customer-facing physical location on Williamson Street between Few Street and Dickinson Street; or, an existing business with a customer-facing physical location on Baldwin Street between Wilson Street and Jenifer Street; and,
BE IT FURTHER RESOLVED that ineligible businesses and organizations include government, home-based businesses, and public and quasi-public authorities; and,
BE IT FURTHER RESOLVED that the Economic Development Division Director, or their assigns, is authorized to prepare and issue applications for funding, with requested information in the applications to include, but not limited to the following:
• Documentation showing a reduction in sales during a July/August 2026 timeframe when compared with the same time period in 2025 and/or the months leading up to July/August 2026. Such documentation may include Wisconsin Dept. of Revenue Sales and Use Tax Returns and other accounting reports.
• Information regarding whether business expenses (such as payroll) also decreased during the closure, impacting overall revenue.
• Information about how the applicant intends to utilize funding granted by the City and how that funding will assist the business: payroll, operating expenses, rent, etc.
• Information about whether or not the business had business interruption insurance, whether this insurance covered the loss of sales, and what the business’ deductible was.
• Other information or documentation helpful to staff in reviewing applications; and,
BE IT FURTHER RESOLVED that the Economic Development Division Director, or their assigns, is authorized to review applications and develop a reasonable estimate of lost sales; and,
BE IT FURTHER RESOLVED that the Economic Development Division Director, or their assigns, is authorized to prepare a funding plan with a recommendation regarding the amount of funding to be granted to each applicant based on, but not limited to the following:
• The estimated sales loss of an applicant and the impact of this loss on overall revenue.
• The proportionate share of sales loss that could be supported by Williamson Street Business Stabilization Program, as compared with the sales loss of other businesses being supported by the program (ie. relative fairness).
• Whether the sales loss was covered by business interruption insurance, and if so, what the deductible was.
• How the funding is proposed to be used.
• The availability of funding relative to the applications received.
BE IT FURTHER RESOLVED that the Economic Development Division Director, or their assigns, shall submit the funding plan to the Business and Economic Resources Committee (BERC) for approval; and,
BE IT FINALLY RESOLVED that the Economic Development Division Director, or their assigns, is authorized to issue payment to applicants following Business and Economic Resources Committee (BERC) approval.