Madison commission approves water-project change orders, authorizes airport grant signature and hears nonprofit funding requests

The Madison City Commission on Tuesday approved final contract adjustments on two municipal water projects, authorized the mayor to sign a federal airport improvement grant agreement and discussed preliminary guidance for $488,050 in nonprofit funding requests as staff prepares the 2026 budget.

The actions were taken by voice vote after staff presentations and brief commission discussion. Commissioners also adopted a housekeeping resolution updating assigned powers and duties for the mayor and commissioners after recent changes in membership.

Jamieson, a city staff member, introduced the second reading of Ordinance No. 16-81, an amendment to appropriation Ordinance No. 16-72 that adds $31,218 to pay for maintenance tied to a railroad crossing improvement. "This is second reading of an ordinance that appropriates $31,218 to be used towards maintenance on a railroad crossing improvement," Jamieson said. The ordinance was approved by voice vote.

On water infrastructure, the commission approved Change Order No. 2 for Madison Water Improvements Segment 4 with Metro Construction Inc. as a final reconciliation of quantities. Ryan, a city staff member, told commissioners the change order "results in a decrease in the contract total of roughly $19,300," bringing the project total to about $806,000. The motion to approve the change order carried on a voice vote.

The commission also approved Change Order No. 3 for Madison Water Improvements Segment 5A with Asphalt Surfacing Company Inc. That three-part change order added material and construction work — including additional red rock on Fourth Street, rip-rap and temporary dewatering measures at an erosion-prone storm-sewer outlet on the east side of Union Avenue, and two 8-inch 45-degree bends to align the new waterline with existing mains after discrepancies in old city records. Ryan said the change order increases the contract by $29,983.05, bringing the contract to about $4,461,000. Commissioners voted to approve the change order.

On airport funding, the commission authorized the mayor to sign grant agreement MDS GLG 3460029272025 for phase 2 taxi-lane construction at Madison Municipal Airport. Ryan said the agreement is similar to a previously approved Airport Improvement Program (AIP) grant and that the Federal Aviation Administration will pay 95% of allowable costs, with the state and local share each at about 2.5%. The FAA's maximum obligation for the city on this grant is $116,850, Ryan said. The commission authorized signature by voice vote.

Staff presented the 2026 nonprofit funding requests and the early budget outlook. Jamieson said the city received requests totaling $488,050 — an increase of $21,550 from the prior year — but cautioned the general fund faces pressure from rising costs and potential reductions in sales and property tax revenues next year. Jamieson told commissioners the draft budgeting work projects a needed reduction in general-fund spending of roughly 5–10% from 2025 appropriated levels, with some flexible areas potentially trimmed 10–15% to cover non-discretionary obligations such as debt service.

Commissioners urged caution and suggested guidance rather than final allocations. One commissioner said nonprofit allotments could be reduced about 10% before considering staffing cuts. Multiple commissioners asked staff to prepare draft budgets using the 2025 nonprofit funding levels as the baseline while staff completes revenue forecasts. Jamieson said the first reading of the 2026 budget ordinance is scheduled for Oct. 20, with a budget session planned during the second meeting in September.

Finance staff also reported August 2025 operational updates: the city launched a new capital-budget submission process using ClearGov, is reviewing sales-tax accounting within the Tyler system to correct fund movements and is exploring options to address audit delays. Staff reported general cash on hand and investments (general cash roughly $9,060,000; investments $6,100,000; checking $2,120,000; restricted cash about $633,000) and noted cash is lower than a prior peak due to recent project spending. Sales-tax receipts for July arrived late but were positive, with July collections about $537,000 (a year-over-year increase of about 42.5% for that month); staff said year-to-date sales tax was modestly positive.

The meeting concluded with a reminder about the commission's next regular meeting and an open appointment for a planning commission vacancy ending in 2026.

Votes at a glance - Ordinance No. 16-81 (amend appropriation ordinance No. 16-72, add $31,218 for railroad crossing maintenance): Approved (voice vote). - Resolution 20-25-19 (adopt powers and duties of mayor and commissioners; fill role assignments): Approved (voice vote). - Change Order No. 2 — Madison Water Improvements Segment 4 (Metro Construction Inc.): Approved; contract decreased by $19,246.15 (approx. $19,300); new contract total about $806,000 (voice vote). - Change Order No. 3 — Madison Water Improvements Segment 5A (Asphalt Surfacing Company Inc.): Approved; increase $29,983.05; new contract total about $4,461,000 (voice vote). - Authorize mayor signature — Grant agreement MDS GLG 3460029272025 (Madison Municipal Airport, FAA AIP/AIG): Approved; FAA obligation up to $116,850; federal 95% / state 2.5% / local 2.5% cost-share (voice vote).

Reporting notes: The article summarizes motions and outcomes that were recorded by voice vote and noted as "motion carries" in the meeting transcript. Exact roll-call tallies were not given in the transcript and are reported here as voice-vote approvals. Financial figures and dates are taken from staff presentations recorded in the meeting transcript.