Mayor reveals $418M capital budget as referendum looms

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Mayor reveals 8M capital budget as referendum looms

Mayor Satya Rhodes-Conway unveiled a relatively lean $418.3 million capital budget for 2025 that reduces Madison’s borrowing and reflects how the city’s budget crisis on the operations side is affecting its capacity for new projects.

New investments in the mayor’s proposal include a $46 million Far West Side public works facility and the consolidation of a South Side police precinct with new space for evidence storage.

Other capital projects highlighted by Rhodes-Conway include nearly $18 million worth of infrastructure upgrades on Regent Street and a $5 million expansion of Pleasant View Road.

But the mayor acknowledged that the looming drama of whether voters will back a $22 million referendum to supplement the city’s operating budget is overshadowing the city’s investments in infrastructure and facilities.

“This is not your typical year,” she said at a press conference Tuesday. “We made careful choices in the capital budget to minimize future operating costs and burdens on the taxpayers.”

That’s reflected in projects like the public works facility. City staff often have to trek between Downtown and the Far West Side, and the new facility is expected to cut down on those trips and save a half a million dollars in fuel costs.

Other projects are being delayed because the city doesn’t have the money to staff and operate them.

“This budget continues to deliver on the foundational underpinning of city services, continues to deliver strong infrastructure, and it continues to deliver sound fiscal management,” the mayor said.


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With the capital budget released, attention will pivot to an unprecedented operating budget reveal coming in October. Officials will release two versions of the 2025 operating budget, one that reflects voters passing the $22 million referendum on the Nov. 5 ballot and one that doesn’t reflect the extra revenue.

If the referendum passes, the budget will will maintain existing city services and staffing levels. If voters reject the referendum, the budget will include $6 million in cuts for 2025.

It’s unknown where those proposed cuts will be in the mayor’s proposal, but city departments and divisions have identified potential service reductions and the elimination of programs.







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Mayor Satya Rhodes-Conway’s 2025 capital budget includes a $46 million public works facility on the Far West Side and $18 million in upgrades for Regent Street. 




How does it compare?

At $418.3 million, the mayor’s proposal is record-setting in cost and is 11.1% larger than the previous record of $376.5 million in 2023. It’s 53.2% higher than this year’s $273.1 million budget.

But those totals alone don’t reflect the nuances of the capital budget.

The mayor’s infrastructure proposal taps about $85 million more from non-city sources such as federal and state government compared with this year’s capital budget.

The proposal also calls for the city to borrow $125.9 million for 2025, a roughly $12.4 million reduction from last year’s borrowing total.

When adjusted for inflation, the city’s reliance on borrowing will be the lowest it has been since 2020, which was Rhodes-Conway’s first budget.

Capital borrowing is debt the city has to service every year in its operating budget. The mayor’s capital proposal for 2025 makes the city’s debt service 16.6% of its operating budget. If the budget were to be passed by the City Council as is, that figure would peak at 18.1% in 2028 and fall back to 16.6% by 2030.

In the past 20 years, the lowest that figure has been was 10.1% in 2008.


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Other highlights

Each capital budget includes a nonbinding, five-year Capital Improvement Plan, which includes existing and new funding for projects in almost every part of city government.

Notable projects in the Capital Improvement Plan between 2025 and 2030 include:

  • $30.2 million in new funding for second and third phases of the Community Development Authority’s Triangle redevelopment Downtown,
  • $16.2 million in borrowing pledged for the city’s Affordable Housing Fund in 2030, building on a doubling of the fund announced last year,
  • $4.3 million from city borrowing, the federal government and other sources for
a new railroad bridge on Troy Drive
  • ,
  • $5 million in borrowing between 2027 and 2030 for new portable police radios,
  • and $400,000 in borrowing to match federal money for planning for a passenger rail station in Madison.

‘Horizon list’

Like in past capital budgets, a slew of projects are included in a “horizon list,” meaning that there is a clear need for them and planning should continue but the city is not yet ready to put them on the five-year Capital Improvement Plan.

Two more modest projects have been added to the list for the coming year: $2.5 million for PFAS-free equipment for the Madison Fire Department and $400,000 in upgrades to fueling infrastructure for the city’s vehicle fleet.

Another project on the list last year — improvements to Breese Stevens Field — will receive a city match of $4 million if the Parks Division is awarded a grant from the state for the upgrades, the budget notes.

Tens of millions of dollars worth of improvements at city parks remain on the list from past budgets, including about $16 million for a community center at Elver Park, a $4.5 million upgrade to James Madison Park and a $14 million endeavor to implement the master plan for Vilas Park.

A $15.7 million new Madison police station on the North Side remains on the list, as well as a $20 million operations center for traffic engineering and parking operations.

“This is not your typical year. We made careful choices in the capital budget to minimize future operating costs and burdens on the taxpayers.”

Satya Rhodes-Conway, mayor of Madison

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