At the Madison City budget workshop, finance staff explained a reclassification of personal-service expenses that shifts salary and benefit lines into the funds that directly pay for them, particularly public safety.

Staff member Mindy and others told council the change is intended to make department operating costs more transparent. They said the police department's general-fund line now shows mainly staff costs (about $3 million in the draft presented), while other police-related costs previously scattered across multiple funds have been consolidated into a public-safety category. Staff described the consolidation as a bookkeeping change rather than a new ongoing increase in total spending.

Council members asked whether the consolidation made the police budget look larger; staff explained that pulling scattered personal-service lines into the public-safety fund can create the appearance of a sizeable increase even when total spending is adjusted across funds.

On salaries, staff recommended a baseline 3% general salary increase for 2026 to reflect cost-of-living guidance the mayor provided. Council members discussed specific pay comparisons and whether certain roles (for example, police positions) might require higher adjustments to stay competitive. Staff also noted recent increases in employer pension contributions (PERF) had required moving budgeted pension amounts into the correct departmental lines so costs are clearer to departments and the council.

Staff emphasized these are estimates and that final totals may change after DLGF certification and as more payroll and pension data are reconciled.