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Madison Board of Finance sets fiscal 2027 mill rate at 23.06 after factoring projected state revenue
Summary
The Board of Finance voted to set the fiscal 2027 mill rate at 23.06, approving inclusion of a projected $2,261,940 in state revenue and allocating $400,000 from fund balance to limit the tax increase; the board also adopted a 99% tax-collection assumption and directed tax bills to disclose a higher alternative millage if state aid fails to arrive.
The Town of Madison Board of Finance voted to set the fiscal 2027 mill rate at 23.06 on Wednesday after approving assumptions that include a projected $2,261,940 in state revenue and allocating $400,000 from prior-year fund balance to reduce the tax increase.
The board approved the package of assumptions — including a 99% tax collection rate — by a series of voice votes. Chair remarks opened the discussion on including state revenue in the mill-rate calculation; a board member moved to include the projected $2,261,940 in the calculation and the motion carried.
Stacy, a town finance staff member, told the board staff was projecting about $1.3 million in revenue over-achievement for the current fiscal year and noted ongoing activity related to tax-appeal refunds tied to a prior revaluation, which could reduce fund balance. "We're projecting about a 1.3 million in over achievement in revenue versus the budget," Stacy said when presenting the projections.
Board members debated whether the projected state aid was likely to be a one-time event and whether to use the windfall to lower the mill rate immediately or to retain it as a reserve. The board ultimately voted to apply $400,000 from fund balance to lower the tax burden and to use a 99% tax collection-rate assumption when finalizing calculations. Members discussed that using a higher assumed collection rate reduces the amount of fund balance required; staff said moving from 98.75% to 99% collection would reduce additional fund-balance needs by roughly $225,000 in one scenario described to the board.
Under the assumptions the board adopted, the new mill rate of 23.06 represents an increase from the current rate of 22.43. The board also voted to comply with state disclosure requirements by showing on tax bills an alternative figure of 23.58 mills that would apply if anticipated state aid does not materialize.
The board's actions were procedural votes on the mill-rate assumptions and final mill rate; there was no separate public comment on this item and the motions were carried by voice vote. The board also approved related administrative motions required for the tax-bill disclosure.
Votes at a glance: - Include projected state revenue of $2,261,940 in mill-rate calculation — approved (voice vote). - Adopt 99% tax collection-rate assumption — approved (voice vote). - Allocate $400,000 from fund balance to offset taxes — approved (voice vote). - Set fiscal 2027 mill rate at 23.06 (from 22.43) — approved (voice vote). - Show 23.58 mills on tax bills if state aid does not arrive — approved (voice vote).
The board moved on to other agenda items after completing the mill-rate votes; staff said final reconciliations and any necessary line-item transfers will be brought back to the board in a future meeting.
