Madison Reporter

Today, Mayor Satya Rhodes-Conway released her 2025 Executive Capital Budget and 6-Year Capital Improvement Plan (CIP), outlining funding proposals for streets, parks, bikeways, public buildings, water and stormwater systems, and other public assets in Madison. The Capital Budget is a significant component of the City’s budget. In October, the Mayor will introduce her 2025 Executive Operating Budget, focusing on services, staffing, and programs.

“Madison’s vibrancy and economy rely on the infrastructure and services the City provides every day,” said Mayor Rhodes-Conway. “Capital investments in our streets, parks, bikeways, libraries, and other infrastructure create the safe and healthy neighborhoods we live in, maintain our environmental quality, and underpin the mobility and economic vitality of our city. That is what my capital budget delivers on. It invests in our critical infrastructure to help keep our neighborhoods safe and our economy strong.”

While the City’s operating budget faces a structural deficit due to constraints on revenue imposed by the State Legislature on Wisconsin cities, its capital budget has different funding sources to finance capital projects. Funds in the capital budget cannot be used to fund everyday services provided by the operating budget.

The State Legislature has not placed strict limits on capital budgets, allowing the City to deliver necessary infrastructure for a fast-growing city responsibly. This approach supports efficient operations, maintains financial health, and saves taxpayer dollars.

Madison’s debt service as a percentage of the total budget has remained steady and is slightly below 2019 levels. General Obligation borrowing for 2025 is proposed to be $12.4 million lower than in 2024 and reduced by $5.3 million over six years in the Capital Improvement Program. The City benefits from an Aaa bond rating, enabling it to borrow money at low interest rates.

The Executive Capital Budget aims to minimize taxpayer burden. The 2025 proposed budget is $24 million lower than agency requests and $12.3 million lower than the 2024 adopted budget. It also supports projects that enhance operational efficiencies over time to reduce taxpayer impact as the city grows.

Examples in the Six-Year Capital Improvement Program include:

- Constructing a South Point Road Public Works Facility on the far west side to manage growth better serve this area efficiently.

- Co-locating the South District Police Station with a property and evidence storage facility for improved service.

- Upgrading stormwater systems on Regent Street while replacing aging infrastructure simultaneously for cost efficiency.

The City also aggressively pursues grant funding for capital projects. Since 2020, it has secured $563.9 million in federal and state funding for improvements in Madison.

The Mayor’s Executive Budget will be discussed at City Finance Committee meetings on September 16 and 17 with final Common Council action in November, providing multiple opportunities for resident input. Full budget documents are available on the 2025 Capital Budget website.