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Madison council introduces 2025 budget, establishes appropriations cap bank amid rising utility and capital costs
Summary
The Madison Borough Council introduced its 2025 budget and voted to create an appropriations "cap bank," approving related ordinances and the budget introduction resolution after a detailed finance presentation that flagged rising electric costs, a one-time transfer to capital, and a potential purchase of the Drew Forest.
The Borough of Madison Council voted to introduce the 2025 municipal budget and approved an ordinance to establish an appropriations cap bank, moves the council says are intended to preserve flexibility for sudden cost increases while addressing rising utility and capital expenses.
Council President Rachel Ehrlich and Chief Financial Officer Jim Burnett led the council through a 19‑slide presentation that the borough made available on RoseNet. Burnett told the council the general budget increased by about $1 million (excluding one large general capital adjustment) and highlighted a sharp $3.8 million rise in electric utility energy costs. The presentation recommended establishing a cap bank to allow future councils limited additional appropriations (up to 3.5%) when necessary.
The council’s introduction of Ordinance 7-2025 would permit the borough to exceed municipal appropriation limits and place the difference in a cap bank for up to two years. Council members voted in favor by roll call after the presentation; the motion passed on the recorded yes votes in attendance. The council also approved Resolution R109-2025 to publicly introduce the 2025 budget and set a public hearing and final adoption date.
Why it matters: Burnett said the borough faces near‑term pressures from a large capital bump in 2026 (primarily road reconstruction), rising police and fire costs (partly driven by a new 24/7 paid EMT service), uncertainty over PFAS regulation costs for the water utility, and the potential purchase of the Drew Forest. To provide flexibility, the 2025 budget increases the use of municipal fund balance and places $4.5 million into the capital improvement fund as a one‑time additional allocation; Burnett emphasized that money placed in the capital improvement fund requires a later ordinance to spend. The borough is proposing a 2% property tax increase under the introduced budget.
Key figures and context: Burnett said the proposed 2% tax increase equals about $5.23 per month (about $62.76 per year) for the average Madison home. He said the average municipal portion of property tax in Madison is roughly $3,000 on a home valued at about $875,000. The presentation showed municipal fund balance estimates rising in the 2025 proposal to $7.7 million from prior-year figures and noted that the borough increased its municipal revenue estimates (interest, parking, construction fees) compared with pandemic years, which affects future fund balance generation.
Council members asked detailed follow-up questions about the electric utility increases, fund balance strategy, and the mechanics of financing a possible Drew Forest purchase. Burnett said the borough reduced the electric utility dividend (effectively a 10% rate change relative to previous temporary pricing) to address structural imbalance and that some short‑term and long‑term borrowing strategies remain under consideration should the borough proceed with buying the Drew Forest. Council members emphasized the trade-offs between using fund balance, capital funds, and short‑term borrowing, and discussed the importance of maintaining reserves to meet rating agency expectations.
Votes at a glance: Ordinance 7-2025 (exceed appropriation limits / establish cap bank) — introduced/passed on roll call (all council members present voted yes). Resolution R109-2025 (introduce 2025 budget and set public hearing) — passed on roll call (all council members present voted yes). The council later set the public hearing date and directed publication of budget summary per statute.
What’s next: The budget will be available for public review for at least 28 days as required under state law, and a public hearing and final adoption are scheduled at the council meeting set in the published notice. Council members said they will continue to monitor utility costs, capital timing, and options for financing or phasing the Drew Forest acquisition.
Ending: Council members and staff stressed transparency; Burnett repeatedly pointed residents and interested parties to the full slide deck and supporting documents on RoseNet for more detail.
