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Madison Reporter

Tuesday, September 9, 2025

Madison mayor presents 2026 capital budget focused on infrastructure and affordable housing

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Satya Rhodes-Conway, Mayor at City of Madison | City of Madison

Satya Rhodes-Conway, Mayor at City of Madison | City of Madison

The City of Madison has released its 2026 Executive Capital Budget and five-year Capital Improvement Plan (CIP), outlining investments in the city’s infrastructure and services. The plan aims to address residents’ basic needs while preparing for future growth, with a focus on maintaining the local economy, improving transportation, and expanding housing options.

Mayor Satya Rhodes-Conway said, “The City of Madison’s 2026 Capital Budget and five-year Capital Improvement Plan (CIP) detail how we meet the basic needs of our residents and prepare for the future. They represent a comprehensive plan for investing in the physical infrastructure that underpins the success of our local economy, keeps Madison moving safely, and increases housing options for all of our residents. Guided by thorough study and innovative thinking from City policymakers, I’m confident my 2026 Executive Capital Budget upholds our community’s values and builds upon the progress we’ve made in recent years.”

The operating budget, which covers services, staffing, and programs, will be introduced in October. Both budgets are subject to review by the City Finance Committee and Madison Common Council. Residents have already participated in engagement sessions earlier this year, with further opportunities for public input before final adoption in November.

According to city officials, Madison continues to demonstrate financial strength compared to other Wisconsin municipalities. The city recently received a triple-A rating from Moody’s Investors Service, enabling it to borrow at lower interest rates—saving millions over time through reduced borrowing costs.

Despite this strong fiscal position, officials noted ongoing challenges due to state-level restrictions on revenue sources. Property taxes remain the primary funding mechanism for local operations because state law limits cities like Madison from adopting alternative revenue streams. This situation is particularly difficult for growing cities responsible for providing more services without corresponding increases in funding.

Federal policy changes have also impacted Madison’s ability to invest in infrastructure improvements or climate resilience projects by eliminating certain financial tools previously available to cities.

Mayor Rhodes-Conway addressed these constraints: “Borrowing for capital projects, even at low interest rates, also impacts what we can accomplish in the operating budget so we must be prudent and prioritize investments to best serve our residents. This challenge will be more acute in coming years because of looming federal cuts to the social safety net, such as Medicaid, public health initiatives, and food benefits. Some of these cuts have direct fiscal effects on the City’s budget, while others will lead to greater needs in the community that Madison and other cities will have no choice but to contend with in future operating budgets. The federal government abdicating its responsibilities will ultimately increase burdens on Madison property taxpayers.”

To control debt service payments within manageable levels, Mayor Rhodes-Conway reduced general obligation borrowing by $73.5 million compared with agency requests. She emphasized efforts since 2020 that secured $618.6 million from federal and state sources—a strategy aimed at minimizing impacts on local taxpayers.

One example highlighted was a planned new Streets facility on Madison’s far west side designed to improve efficiency for trash collection as well as snow removal operations; this project is expected to save half a million dollars annually on fuel costs once operational.

Another major initiative is continued investment in affordable housing through upgrades such as redeveloping Triangle public housing without displacing current residents—ultimately replacing 340 apartments with up to 1,200 new units using sustainable building methods over ten years.

Additional highlights from the proposed capital budget include:

- $29.2 million allocated for street reconstruction,

- $25 million toward park system improvements,

- $8.9 million dedicated to flood reduction projects,

- $5.3 million set aside for sidewalk repairs,

- $2.9 million earmarked for bikeway enhancements,

- $1.4 million supporting Safe Streets initiatives,

- And $735,000 directed toward urban forestry equipment.

Affordable housing remains a priority; $17.5 million is slated for new affordable homes across Madison next year alone.

Despite limited support at higher levels of government affecting public housing resources citywide, Rhodes-Conway reported progress: “Thanks to these investments and our prior funding of affordable housing, I’m happy to report that Madison is on track to meet our goal of building 5,000 new homes in 2025.”

She concluded: “I’m looking forward to working collaboratively with my colleagues on the Common Council during the upcoming budget process. My Executive Capital Budget proposal focuses on the core services and infrastructure that keeps Madison running while creating a high quality of life for our residents. I know that’s a goal we all share.”

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