2027 Executive Budget: Let's Talk about the Budget! Part 2

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Hola!

Check out the prior blog for a summary of the: 2027 Executive Budget: Let's Talk about the Budget!  

PDF copy of the budget, referenced in this blog (includes page numbers)

PDF of the images shared (better visual quality and resolution)

Operating Budget by Function & Agency General & Library Funds

When navigating the budget, pay close attention to page 49. The page reflects the portion of the budget associated to the general funds only. 

For example the General Funds used for:

  • Community Development is $17.350 million
  • Library is $24.297 million
  • Police is $102.493 million
2027 Agencies General Funds only

Expenditures by Service (All Funds)

When reviewing each agency, the budget includes all funds, the general funds and other revenue sources. 

For example the General Funds plus other revenue sources used for:

  • Community Development is $27.036 million
  • Library is $27.627 million
  • Police is $106.654 million

Using the library as an example the agency page contains all the funding sources while page 49 only list the general funds.

Library example

What happens next?

We are almost at the end of the budget process!

Next week, the Common Council will deliberate on amendments to the budget. The budget moved from the Mayor's hands to the Council and our responsibility is to adopt a balanced budget.

Alders are encouraged to bring forward amendments. However, because the budget must remain balanced, each proposed amendment needs to identify a funding source. In other words, if an amendment increases spending, it must also identify where that money will come from, such as a reduction in another agency's budget or service.

The Common Council meets on Tuesday, November 10, at 5:30 p.m. to deliberate and adopt the City's 2027 budget.

There are a few important steps involved in that process. Here is a quick overview provided by the Finance Department:

Understanding the Council's budget adoption process

Floor amendments

Under the Council's budget rules and procedures resolution, amendments introduced from the floor during the Council meeting must:

  • Have two sponsors.
  • Be written and distributed to Council members.

Alders should work with Assistant Finance Director ahead of the meeting for on the floor amendments and copy the Mayor, City 

Clerk, City Attorney, and Finance Director when distributing the amendment.

Capital and operating budgets

The Mayor introduced the Executive Budget, which was then reviewed and amended by the Finance Committee.

The Common Council will consider amendments to both the capital and operating budgets. Once amendments to each budget are addressed, the Council will vote on the capital and the operating budget as amended by Finance.

The budget resolution

After the capital and operating budgets are adopted, the full 2027 budget and the 2026 property tax levy are adopted through a Council resolution. The resolution brings together several important components:

  1. Property tax levy

    This is the amount of property taxes that will be levied on taxable properties and included in the December 2026 property tax bills.

  2. Allowable property tax levy (15 votes)

    This is the estimated maximum property tax levy permitted under state law, including the additional authority approved through the levy limit referendum.

    Because of the amount of unused levy limit authority carried forward from 2026, state law requires a separate three-fourths vote on this item. (15 votes required)

  3. Five-year operating budget plan

    First adopted with the 2025 budget, the five-year operating budget plan will again be referenced in the 2027 budget resolution. The plan appears in the Executive Budget Summary and will be included in the adopted budget book.

  4. General Obligation and Revenue Debt Authorization

    This identifies the total amount of debt authorized in the 2027 budget. It includes new debt approved in the 2027 capital budget as well as carryforward appropriations from previous budgets.

  5. Intra- and inter-agency budget transfer maximums and position changes

    The resolution continues to authorize administrative transfers of up to $50,000 between appropriations with approval from the Mayor or Finance Director.

    It also allows administrative approval of position changes within the annual approved operating budget by the Human Resources and Finance Directors, as defined in RES-24-00181.

  6. Finding community-wide benefit for body-worn cameras

    The 2027 budget includes funding for the purchase and implementation of body-worn cameras for the Madison Police Department.

    The budget resolution includes a finding of community-wide benefit, consistent with section 23.63(4)(b) of the Madison General Ordinances, “Use of Surveillance Technology".

    -- 23.63(4)(b) The Department's request for Surveillance Technology will be approved only upon the determination that the benefits to the community members and residents of the City outweigh the potential privacy interests and that, in the judgment of the Common Council, 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.

  7. General debt reserves

    • The 2027 Executive Operating Budget uses $8.1 million from General Debt Reserves (reoffering premium) to pay debt service on General Obligation bonds and notes.
    • The Executive Operating Budget also makes a direct appropriation of $3 million to capital projects.
    • The difference between these amounts is $5.1 million. This is levy limit authority being used to help fund the operating budget.
    • Under MGO 4.17, when the amount directly appropriated to capital projects is less than the amount of General Debt Reserves used to pay debt service, the Council must authorize that difference through a separate two-thirds vote during budget adoption. (14 votes required)

    This item will therefore be voted on separately.

  8. Final adoption

    • The budget resolution will be read aloud, with the final numbers added before adoption. A substitute version of the resolution containing those final numbers will be included in Legistar.
    • There are several moving parts, but each serves a purpose in bringing the City's capital and operating budgets together into one adopted budget.

¡Gracias!

Budget season is a lot of information, a lot of numbers, and plenty of meetings. My hope is that these explanations help make the process a little easier to follow and give you more confidence in exploring the budget yourself.

Thank you for taking the time to learn about how your City operates. And remember, you don't have to read the entire budget cover to cover to understand it. Start with the Finance Summary, follow the revenue, look at the services, and keep asking questions!

Thank to staff for carrying all the work to get us here!!

¡Hasta la próxima!

2028 Budget Season starts April 2027 :)

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