Fiscal Note
The 2026 tax levy established by this resolution is necessary to fund the 2027 budget. This levy will result in a tax rate of approximately [________] mills.
This resolution includes a paragraph authorizing the carryover of 1.5 percent or less, but more than 0.5 percent, of the actual levy in 2025. That paragraph must be separated during budget adoption and requires an affirmative three-fourths vote of the Council, pursuant to s. 66.0602 (3)(f), Wisconsin Statutes. The carryover amount, subject to certification by the Wisconsin Department of Revenue, is $4,898,934. One and one half percent of the 2025 actual levy is $4,900,006.
This resolution includes a paragraph authorizing the application of general debt reserves to pay general fund debt service without an appropriation of an equal amount from the general fund for capital projects. That paragraph must be separated during budget adoption and requires an affirmative two-thirds vote of the Council, pursuant to section 4.17, Madison General Ordinances. The amount of general debt reserves applied is $8.1 million. The amount appropriated from the general fund for capital projects is $3 million. The difference is $5.1 million.
The resolution includes reference to a Five-Year Operating Budget plan that is meant to guide the development of future operating budgets and present the implications of revenue limitations imposed by the State Legislature on local governments.
This resolution also sets the authorized maximum amount of intra- and inter-departmental transfers at $50,000 in 2027, which is the same level as in 2026.
The resolution includes a determination by the Council relating to MGO s 23.63(4) as it pretains to funding the purchase and implementation of body worn cameras for the Madison Police Department.
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Adopting the 2027 City Budget authorizing a 2026 general property tax levy of $[________] for City of Madison purposes, adopting a supplemental increase of $4,898,934 in the allowable property tax levy for 2026, as authorized under s. 66.0602(3)(f), Wisconsin Statutes, and declaring the City's official intent to issue general obligation and revenue bonds to reimburse for certain expenditures authorized therein.
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The 2026 tax levy established by this resolution is necessary to fund the 2027 budget. This levy will result in a tax rate of approximately [________] mills.
Adopting the 2027 City Budget, including a Five-Year Operating Budget Plan, authorizing a 2026 general property tax levy of $[________] for City of Madison purposes, adopting a supplemental increase of $4,898,934 in the allowable property tax levy for 2026, as authorized under s. 66.0602 (3) (f), Wisconsin Statutes, and declaring the City's official intent to issue general obligation and revenue bonds to reimburse for certain expenditures authorized therein.
BE IT RESOLVED, that the revenues herein named and funds received from taxes levied and other sources are hereby appropriated to the several departments of municipal government for purposes hereinafter mentioned for the fiscal year beginning January 1, 2027 and ending December 31, 2027 as shown in the 2027 City Budget on file in the office of the City Clerk.
BE IT FURTHER RESOLVED, that the expenditures within departments for the various major objects of expenditure and capital projects shall not exceed the amounts specified for such purposes as shown in the budget on file in the office of the City Clerk; provided, however, that the Finance Director is authorized to approve intradepartmental transfers of unencumbered balances of up to $50,000, and the Mayor is authorized to approve interdepartmental transfers of up to $50,000. In addition, the directors of Human Resources and Finance are authorized to administratively approve changes to positions within the annual approved operating budget, as defined in RES-24-00181 (enacted March 13, 2024).
BE IT FURTHER RESOLVED that, pursuant to s. 66.0602 (3) (f), Wisconsin Statutes, the allowable levy for 2026 is increased by $4,898,934 (from $338,069,939 to $342,968,873), by applying unused levy limit authority carried over from 2025, and that this increase in the allowable levy is 1.5 percent or less, but more than 0.5 percent, of the actual levy in 2025, the use of part or all the carried over amount for the 2026 levy requires a three-quarters vote of the governing body.
BE IT FURTHER RESOLVED, that the allowable levy for 2026, subject to certification by the Department of Revenue, is $342,968,873.
BE IT FURTHER RESOLVED, that there be and hereby is levied for general City of Madison purposes, including all levies heretofore made during the year 2026 upon all taxable property in the city of Madison as appears on the tax roll of real property and for the year 2026, a property tax levy of $[________].
BE IT FURTHER RESOLVED, general debt reserves will be applied to reduce general fund debt service, but the City will not appropriate funds of an equal amount for capital projects. In order to do this, MGO sec. 4.17 requires that this paragraph be approved by a two-thirds vote of the Council.
BE IT FURTHER RESOLVED, the 2027 budget includes a Five-Year Operating Budget Plan for meeting the City’s projected costs to maintain current service levels and the implications of revenue limitations placed on local governments by the State Legislature.
BE IT FURTHER RESOLVED, the 2027 budget includes funds for the purchase and implementation of body worn cameras for the City of Madison Police Department. The Police Department has included the information associated with this request required by Madison General Ordinance Section 23.63(4)(a) in the attached memo. As required by Madison General Ordinance Section 23.63(4)(b), the Common Council hereby finds, first, that the benefits of body worn cameras to community members and residents of the City outweigh the potential privacy interests, and second, that there is not an effective alternative with a lesser impact upon privacy interests nor is there an alternative with equivalent impact on privacy interests but with a lesser economic cost.
BE IT FINALLY RESOLVED that the City anticipates that funds, other than the proceeds of any outstanding debt of the City, will be used to pay for those expenditures set forth in the approved 2027 Capital Budget. The City expects to be reimbursed for a portion of those expenditures with proceeds of future general obligation and revenue bond borrowing. The maximum principal amount of general obligation indebtedness expected to be issued for the reimbursement of such expenditures is $[________]. The maximum principal amount of revenue bond indebtedness expected to be issued for the reimbursement of those Water Utility expenditures included in the adopted 2027 Capital Budget is $[________]. The maximum principal amount of revenue bond indebtedness expected to be issued for the reimbursement of those Sewer Utility expenditures included in the adopted 2027 Capital Budget is $[________]. Expenditures paid in advance of such bond issuances may, therefore, be reimbursed through one or more bond issuances in 2027. This Resolution shall serve as a declaration of the City's official intent so as to satisfy the "official intent requirement" of Treasury Regulation Section 1.150-2.