Finance staff previews 2026 capital budget requests: $62.7 million more borrowing sought in overlapping years

Finance staff presented an overview of the city’s 2026 capital budget requests to the Finance Committee on May 27, 2025, noting the agency requests exceed the current adopted SIPP by roughly $62.7 million in additional borrowing for overlapping years (2026–2030) and that the largest increases are concentrated in 2026 and 2027.

Christine (presenter) and finance staff walked committee members through the published agency packets on cityofmadison.com/budget, describing that each agency submitted transmittal memos and proposal forms for capital projects. The staff presentation highlighted that the 2026 request is about 9% higher than the adopted SIPP for overlapping years and that most of the additional dollars are for general‑obligation borrowing (the “GO borrowing” portion), with notable project timing shifts affecting Regent Street and other major street projects.

Staff listed several major changes and new items: $1.7 million and $2.0 million for economic development TIP projects (including a new Boyd Farm TIP), a $3 million change for General and Drive engineering and a $16 million shift of Regent Street into 2027. Public facilities increases include funds tied to South Madison redevelopment (library, fire, public health clinic). Fleet Services requested more for apparatus and lifecycle replacement; Parks added approximately $8 million net above the 2025 adopted SIP for lakeway/parkland improvements; North‑South BRT and other transportation projects were noted. The water utility reflected state funding increases for water-related programs in 2026; transportation added $3.9 million in TIF funding for North‑South BRT.

Christine explained carry forward (reauthorization) mechanics: capital budget authority is multiyear, unused appropriations carry forward and the city typically borrows less than the full authorized amount (average borrowing about 69% of authorization historically). Staff noted agencies were asked not to remove federal funding unless final decisions existed, which is why some federal amounts remain in requests despite uncertainty.

Staff outlined the schedule: the executive capital budget will be put together over the summer; a major update to the committee is planned in September when agency department heads will brief the committee, amendments will be accepted and the Finance Committee will vote on amendments before referral to the full Common Council. Staff encouraged alderpersons to send feedback about agency requests so the executive budget can reflect Council priorities.