Fiscal Note
The resolution appropriates $110,000 from the General Fund unassigned balance to supplies in the Finance Department operating budget to cover the cost of printing and postage for an informational mailing on the upcoming property tax referendum. The referendum question was authorized by the Common Council on August 20, 2024, and will be included on the November 5, 2024 general election ballot.
The cost of the mailing includes printing and postage to send a postcard to the City’s estimated 150,500 residences and businesses, which includes 142,500 owner-occupied and rental properties and 8,000 businesses. The cost per postcard is approximately $0.68, which includes printing ($0.10), paper and cutting ($0.02), and postage ($0.56). The total cost is estimated to be $102,500 for known addresses; a contingency of $7,500 is included for any additional costs associated with the mailing.
The Finance Department has been engaging with the Common Council and residents on the City’s budget, structural deficit, and referendum, throughout 2024. The department has used multiple platforms for communications, including presentations to the Common Council, recorded informational videos, in-person meetings with the public, and virtual question and answer sessions. A citywide mailing has been used by other communities to inform all residents and voters about the effects of the municipal funding referendum on the November ballot.
Under state law, there is no Expenditure Restraint Incentive Program (ERIP) limit in 2024, so the net increase of $110,000 in General Fund appropriations will not affect the City’s eligibility to qualify for a state ERIP payment in 2024. However, the limit is reinstated for the 2025 budget. As such, the final amended amount appropriated for the 2024 budget will serve as the base for calculating the limit for the 2025 budget. The 2024 adopted operating budget is about $5.0 million below the base amount necessary to ensure that the cost-to-continue budget for 2025 is eligible for a $7 million payment under the ERIP. The appropriation from fund balance in this resolution will help with increasing the 2024 base for ERIP purposes. The 2024 year-end appropriation resolution will make further changes to ensure eligibility for an ERIP payment in 2025.
Title
Amending the Finance Department’s supply budget to appropriate $110,000 from unassigned general fund balance to pay for informational mailings on the November property tax levy referendum.
Body
WHEREAS, Madison is facing a $22 million budget deficit for fiscal year 2025 to simply maintain current service levels to residents, including law enforcement, fire prevention and response, emergency medical services, public health, refuse and recycling, snow plowing, traffic, bicycle and pedestrian safety, parks, libraries, community services, transportation and other basic needs; and,
WHEREAS, on August 20, 2024, the Madison Common Council adopted a resolution (RES-24-00520) to authorize the scheduling of a referendum to exceed the municipal property tax limits in the City of Madison; and,
WHEREAS, the November 5, 2024, general election ballot will include a question for voters to authorize the city property tax referendum; and,
WHEREAS, the Finance Department has been actively providing regular updates to the Common Council and the public on the structural deficit and referendum, including developing informational materials and presenting at virtual and in-person community meetings; and,
WHEREAS, a citywide mailing is an important additional method for informing City residents about the upcoming referendum because the referendum will impact all city residents, and a mailing is a way to contact all residents, including those who do not subscribe to city media channels or attend in-person meetings; and,
WHEREAS, the importance of sharing information with all members of the community is why sending mass mailings regarding important City functions and events – such as construction projects, planning processes, public meetings and informational sessions – is a long-established City practice. It is also why other communities, including Monona, Fitchburg, and Stoughton are sending mailings, in some cases multiple mailings, regarding their referenda to their residents; and,
WHEREAS, the City has approximately 150,000 residences and businesses, including rental units, and the estimated cost of printing and mailing an informational postcard to all residences is $110,000; and,
WHEREAS, based on mid-year projections presented to the Common Council in July, attached to the resolution authorizing mid-year appropriations and transfers (RES-24-00514), the Finance Department is projecting to have insufficient funds to cover additional expenses for a mailing; and,
WHEREAS, the General Fund unassigned balance has sufficient funding to cover the increased expenses and meet the policy goal of maintaining a fund balance at least equal to 15% of the General Fund budget.
NOW THEREFORE BE IT RESOLVED, the Common Council amends the 2024 adopted operating budget by appropriating $110,000 from General Fund unassigned balance to Finance Department supplies to pay for printing and postage to send informational materials on property tax levy limit referendum to all residences.