Fiscal Note
The proposed resolution amends the Community Development Division's (CDD) 2026 Adopted Operating Budget to recognize up to $1,148,000 from Dane County for operations at the permanent men's shelter on Bartillon Dr. The funding consists of $1,078,681 of General Purpose Revenue appropriated to permanent shelter operations and an estimated $69,319 of General Purpose Revenue appropriated to temporary shelter operations that is anticipated to be unspent when that location ceases operations. Both appropriations were included in the 2026 Dane County Adopted Operating Budget. The attached memo sent to Common Council on March 10, 2026, from CDD Director Jim O'Keefe outlines how the funding for the shelter operations in 2026 came about and forecasted the need for this IGA.
The City of Madison 2026 Adopted Budget Executive Summary outlined the expenditure authority included in CDD's Operating Budget to operate the shelter in 2026 as an overnight shelter. The City's share of the operating costs is $1.5 million; that amount was determined through a homeless services and housing stability RFP process in 2025. The $1.5 million is contracted to Porchlight, Inc. to operate the shelter. The amount is included in CDD's Community Agency Contracts line within the Purchased Services major. An additional $200,000 is included in CDD's Other Services & Expenses line within the Purchased Services major to cover utility and maintenance expenses.
Dane County's portion of the shelter operations contract with Porchlight, Inc. could be handled in two ways: 1) A contract directly between Dane County and Porchlight, Inc, or 2) through an IGA with the City of Madison to administer Dane County's portion of the funds to Porchlight, Inc. The County chose option 2, necessitating the execution of this IGA.
CDD's agency revenues and corresponding expenditures will be amended to reflect these funds. The funding is not a City of Madison general purpose revenue; therefore, it does not impact the Expenditure Restraint Incentive Program (ERIP).The proposed resolution further approves an Intergovernmental Agreement (IGA) between the City of Madison and Dane County related to shelter operations and authorizes the Mayor and City Clerk to execute the agreement.
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SUBSTITUTE Approving an Intergovernmental Agreement between the City of Madison and Dane County related to the operations of the men’s homeless shelter, located at 1904 Bartillon Drive, and authorizing the Mayor and City Clerk to sign that Agreement; authorizing the Community Development Division (CDD) to accept up to $1,148,000 from Dane County to help fund the shelter’s operations in 2026; and amending CDD's 2026 Adopted Operating Budget to recognize the receipt of those funds and authorize their expenditure. (District 12)
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WHEREAS, Wis. Stat. §66.0301 authorizes municipalities to contract with each other in order to work cooperatively in the joint exercise of their respective powers, and for the receipt and furnishing of services; and,
WHEREAS, the City of Madison and Dane County frequently engage in cooperative efforts, collaborations, which can involve the allocation of funding from one jurisdiction to another; and,
WHEREAS, the City and the County agree that it is in the public interest to combine their respective efforts to reduce homelessness in Madison, and other areas of Dane County in order to improve efficiency of the services they provide; and,
WHEREAS, the City and County collaborated to plan for, design and finance the construction of a purpose-built homeless shelter located at 1904 Bartillon Drive in Madison which will serve homeless single men in Dane County (“Shelter”); and,
WHEREAS, the City and the County are committed to supporting the long-term operation of improved services at the Shelter to meet the needs of homeless single men in the Dane County area; and,
WHEREAS, the Dane County 2026 Operating Budget, approved on November 5, 2025 by the Dane County Board of Supervisors and signed by the County Executive on November 12, 2025, allocates up to $1,078,681 of General Purpose Revenue to support operations at the Shelter in 2026; and,
WHEREAS, Dane County has an executed agreement with the operator at the temporary shelter and has agreed to transfer unspent expenditures, if any remain, at the end of the of the performance period to the City of Madison; and,
WHEREAS, the Budget further indicates that funding for Shelter operations shall flow to the City of Madison, rather than the operator; and,
WHEREAS, to address the fact that a small portion of funding authorized in the County Budget to support shelter services ($14,478) is not explicitly designated to be transferred to the City of Madison, the Dane County Board must separately approve an amendment to the IGA to convey those funds to the City of Madison; and,
WHEREAS, to codify this arrangement and other aspects of their collaboration regarding the Shelter, the City of Madison and Dane County agree to execute an Intergovernmental Agreement (IGA) that will address topics such as funding commitments, funding reimbursement procedures, fiscal and programmatic reporting, and other key policies relevant to the Shelter’s operation.
NOW, THEREFORE, BE IT RESOLVED that the Common Council approves the provisions of the IGA between the City and Dane County related to their shared roles and responsibilities affecting operations of the Shelter, including any amendments deemed necessary to ensure that all authorized County funds are made available to the City for shelter services; and
BE IT FURTHER RESOLVED, the Council authorizes the Mayor and the City Clerk to enter into these agreements; and,
BE IT FURTHER RESOLVED that, upon approval of the IGA by the Dane County Board of Supervisors, the Council authorizes the Mayor and the City Clerk to accept up to $1,148,000 from Dane County for use in supporting Shelter operations in 2026; and,
BE IT STILL FURTHER FINALLY RESOLVED, that the Council authorizes an amendment to the Community Development Division’s 2026 Adopted Operating Budget to recognize receipt of up to $1,148,000 of County funding and its commensurate expenditure.; and,
BE IT FINALLY RESOLVED, that the Council authorizes the Mayor and City Clerk to renew such agreements with Dane County, in forms approved by the City Attorney and Risk Manager, subject to the receipt of each year’s funds and their inclusion in subsequent Community Development Division budgets.