Madison City held a council workshop on the 2026 draft budget in which staff warned that the numbers presented are provisional and heavily dependent on state-level certifications and a package of recent legislative changes.

City finance staff member Mindy and others repeatedly told council members that the Department of Local Government Finance (DLGF) information the city uses to set levies is still incomplete and that the city frequently adjusts its adopted budget after DLGF issues its final order. Staff said DLGF will provide a budget order by the end of the year and certify levies and LITs in April, creating a multi-month lag that requires the council to work with estimates now and to “true up” later when certified figures arrive.

Why it matters: staff warned the council that recent state legislation that changes circuit-breaker credits and exemptions (discussed as part of the legislative package) could materially reduce property-tax proceeds available to the city. Staff said parcel-by-parcel analysis performed for Madison produced the city's current net-levy estimate but that different calculation methods or new state guidance could change that result by roughly $1 million for the general fund.

Staff described the near-term process: the workshop's draft will be distilled into a notice to taxpayers, the council will hold a public hearing on the notice, and the council must adopt an ordinance (Form 4) before the statutory deadlines. Staff emphasized the volume of appropriation lines that must be reconciled and submitted to DLGF before final certification.

Supporting details: staff estimated the city's 2026 budget at approximately $16.5 million and said roughly half of that is supported by the property-tax levy. Council members were told that about 90% of property-tax revenue supports employee salaries and benefits across city funds. Staff also described a plan to move some department personal-service expenses into the correct fund categories so department budgets more accurately reflect full operating costs.

Next steps: staff will refine the master sheet as DLGF releases more information, post the materials in the state transparency gateway, and return to council with the notice to taxpayers and a schedule for the public hearing and adoption.