Madison holds public hearing and advances ordinance to reestablish cumulative capital development fund rate

The Madison City Council held a public hearing on Ordinance 2025-6, which would reestablish and increase the city’s cumulative capital development fund (CCD) rate under state statute. City staff said reestablishing the rate would yield additional annual revenue—"almost another $100,000," according to the clerk/finance staff—earmarked for capital investments such as infrastructure, facilities and beautification projects.

City staff explained that the CCD rate was set in 1985 and not reestablished subsequently; state statute permits municipalities to reestablish the rate after meeting statutory requirements. The clerk explained budgeting and certification steps: DLGF (Department of Local Government Finance) provides revenue estimates, council decides appropriations during the annual budget process, and DLGF later reviews and certifies budget figures.

The hearing drew brief public comment. Resident Diana Shelley asked whether the increased CCD rate would delay or cancel planned West Main Street improvements; staff answered that Main Street funding had been set using a bond and federal/state matching funds and that the Main Street project is part of a multi-year plan and is not expected to be canceled as a result of reestablishing this CCD rate. The clerk and administration noted that the state budget and new legislative changes create uncertainty for future infrastructure funding and that the city is preparing for state revenue reductions.

Council discussion touched on larger budget pressures. Officials said the city expects cuts tied to recent state actions (described by staff as reductions totaling in the hundreds of thousands of dollars annually), and council discussed hiring freezes and directed staff to seek 5% reductions in department budgets to prepare for next year. One council analysis presented to the group indicated about 70% of city single-family, owner-occupied parcels are already at the property-tax cap; staff said for those households the additional CCD levy would not increase their tax bill because of state caps.

After the public hearing, council advanced Ordinance 2025-6 to second reading and approved it on roll call. The ordinance establishes the maximum rate; appropriations and exact revenue estimates will be finalized during the city’s budget process and certification by the Department of Local Government Finance.

Ending: Council and staff said the CCD increase is intended to provide designated capital funding for deferred maintenance and infrastructure projects amid uncertain state funding; specific project appropriations will be set in the upcoming budget process.