About the City Budget

The City of Madison has two budgets: the capital budget and operating budget. Both are planning documents that outline how the City will spend money from January 1 through December 31 each year. The operating budget must be balanced. This means the city cannot spend more money than what is coming in through taxes and other revenues. The City's budget process follows the requirements set by state laws and local ordinances.

Capital Budget

• What is it: The capital budget funds physical infrastructure like roads, bike lanes, building improvements, affordable housing development, equipment, and other projects. 
• Why is it important: Capital projects are long term investments that ensure infrastructure is safe, effective. They also help the City achieve its goals on climate change, housing, and other key issues.
• How is it funded and paid for: These items are primarily paid through borrowing, which is repaid over time. Other funding sources include fees and assessments paid by users of specific services and property owners, and federal and state grants. 

Operating Budget

• What is it: The operating budget pays for the City's daily services to residents. This includes paying staff salaries, community-based organizations who deliver services on behalf of the city, and other costs. 
• Why is it important: The operating budget supports core services including police, fire, emergency medical services, library and park programs, garbage and recycling collection, snow and ice removal, and more. 
• How is it funded and paid for: The operating budget is primarily supported by property taxes. Other funding sources include charges for services, user fees, and federal and state aid. 

Timeline and Process

The budget development process takes place throughout the year with input from staff, policymakers, and the public. The Common Council approves the final budget in November for the upcoming year. The basic timeline can be summarized in four key steps.

1. Planning (January – May): The Finance Department studies the current budget and estimates how much it will cost to provide the same level of services in the upcoming year. Policy makers also make decisions about the most important items for the budget. 
2. Agency Request (April – July): Agencies develop requests for the capital and operating budget. They present their requests to the mayor's office. City staff use input from residents to decide what is important to include in their requests. 
3. Executive Budget (July – August): The Mayor develops the executive budget based on important policy issues and agency requests. 
4. Legislative Process (September – November): The Finance Committee and Common Council hold a series of budget hearing meetings. Residents can register to speak at these meetings and provide written comments on the budget. Alders can suggest changes called “amendments" to the budget. The final budget must be approved by a majority vote by the alders. 

Resident Access and Participation

There are many ways for residents to participate in the budget process. 

1. Be informed about what is included in the budget.

   The City publishes information about each step of the budget process on the City's Budget website. You can review agency requests, the executive budget, and other information at this site. In addition, physical copies of the budget are available at each branch of the Madison Public Library. 

2. Contact staff or elected officials to express your views on the budget and priorities.
   1. Contact your alder to share your concerns about the budget.
   2. Email the City Finance Department to share your concerns or ask questions about the budget.
3. Provide public comment on the budget at Finance Committee and Common Council meetings. 
   1. Submit written comments by email to the Finance Committee or Common Council. 
   2. Attend public budget hearings of the Finance Committee and Common Council in September, October, and November. The meeting schedule and links to register to speak or watch online will be available online closer to the meeting. 

Information Series on the City Budget

The following presentations provide in-depth information on the City's budget process. 

Part 1: Budget 101

• Budget Overview and Process
• Understanding the City’s Fund Structure
• Operating Budget Highlights

Part 2: The City's Structural Deficit and Referendum

• Understanding the City’s Structural Deficit
• Balancing the City Budget

Part 3: Financial Policies and the Levy Limit

• Role of Fund balance in the City Budget
• The Levy Limit and Impact of Debt Service