Madison outlines multi‑million dollar utility projects and considers solid‑waste rate increase

Commissioners were presented with a list of high‑cost utility projects and potential rate and financing responses as part of the 2025 budget discussion.

On electric infrastructure, staff identified three principal projects: a transformer/Green Substation upgrade ($3.5 million), a Southeast Substation and transmission upgrade ($650,000) and an underground conversion for Feeder #8 (about $1.479 million). Staff said those projects, together with other planned work, are driving a capital need that left the electric fund with a projected deficit and requires consideration of bonding or phased financing.

Staff also told the commission they expect an audit update before the rate study concludes and that the audit results will influence whether the city adjusts rates or bonds some projects across multiple years. A line‑item request for electric reserve spending (load management upgrade $60,000; substation work $55,000) was noted.

Solid waste and recycling were identified as another budget risk. Staff recommended advertising a new two‑year operational services bid for the Madison Recycling Center and described recycling revenue as volatile; staff also recommended a $2 monthly increase in the city’s solid waste charge to better align Madison with peer cities and to improve the solid waste fund’s sustainability.

Why it matters: the volume and size of utility projects and rising insurance and benefit costs increase pressure on general revenues and user rates. Commissioners asked staff to provide updated audit figures and refined rate study timing before making final rate decisions.

Next steps: staff will finish audit work and refine the rate study, advertise the recycling services bid (Bid 961), and return to the commission with updated revenue impacts and bid results in advance of final budget adoption.