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Madison council previews tight 2026 budget as tax appeals wipe out new ratables
Summary
Borough officials presented a draft 2026 municipal budget that limits a recommended tax increase to about 2% while warning a string of recent commercial tax appeals erased projected ‘net new ratables,’ forcing reductions in capital spending and reliance on reserves.
Acting Mayor John Jay Forte and borough officials gave Madison residents a first look at the draft 2026 municipal budget, with Chief Financial Officer Jim Burnett saying the town plans to hold the tax increase to about 2 percent while trimming capital appropriations to close a large gap caused by falling office valuations.
"We had a significant drop in net new ratables because the office parks all had tax appeals," Jim Burnett said during his slide presentation, warning the appeals “completely wiped out all of the new ratables.” Burnett said 2025 fund balance was roughly $6 million and that the draft relies on a smaller capital appropriation to balance operating needs.
Why it matters: the budget faces rising costs for core services — police, fire, public works, sewage treatment and the library — that together increased by roughly $2 million in the draft. Council members pressed staff on whether deeper cuts were possible but many said much of the low-hanging savings have already been taken in prior years.
Fire and EMS needs factored into the discussion. Madison Fire Chief Whitman described growing EMS call volume — "214 calls in January" — and the department’s capital requirements, including replacing an older ambulance (EMS 3) and upgrading confined-space equipment and turnout gear.
Councilman Range, summarizing the debate, said the borough has “sharpened the pencil as far as we can” and noted that pension, health-care and sewage-processing costs are driving much of the increase. Council members and staff also pointed to two structural fixes that should ease pressure in coming years: scheduled debt retirements that will free roughly $1.5 million and expected revenues from new development coming online.
Key numbers and specifics mentioned in the meeting: the draft assumes a 2% tax increase target; Burnett described a 2025 fund-balance figure around $6,022,000; capital reductions were used to help close a projected shortfall, and the Hartley Dodge Memorial Building renovation was noted as an $8,000,000 project included in capital planning. Several grant-funded items — including a $250,000 grant application for the municipal pool — were discussed as partial offsets.
Next steps: Burnett described the document as a draft that will be refined; the council will review additional department presentations and is scheduled to hold the final budget hearing and vote to adopt the budget on April 27. The public can review budget documents on the town’s RoseNet portal.
