Following a city council retreat on Feb. 13 that highlighted the looming threat of financial chaos, Madison City Manager John Klimm announced that he will be forming a citizens' financial advisory committee to work with staff in developing a new financial plan for the city.
“We have extraordinary citizens in Madison who care deeply about the future of our city and who have tremendous backgrounds and experience that can only help the city plan for a better financial future,” Klimm said.
The citizens committee will be made up of residents with extensive backgrounds in business, education, industry, and finance, according to a press release issued by the city of Madison on Feb. 23.
The committee will join Klimm to review the city budget, make recommendations on the city’s financial future, and advise on upcoming budget proposals to stabilize the city’s finances and commit more funding to its infrastructure needs.
“It is critically important that we involve our citizens and bring them into the decision-making process,” Mayor Fred Perriman said. “Madison has a tradition of involvement by our wonderful citizens who give so much to make our city a wonderful place to live and work.”’
The announcement comes on the heels of recent reports detailing the severe financial hurdles facing Madison. During the retreat, which included testimony from several independent municipal finance experts, the council was reminded that they are confronted with a staggering $20 million infrastructure backlog and a history of depleting the city’s savings account and funds designated for infrastructure repair.
The council received clear and compelling testimony that Madison has not had a balanced budget since 2011 and that funds have been regularly taken from the city’s savings account and public works enterprise accounts to balance the budget.
This financial crisis did not occur overnight. It is the direct result of decades of deferred maintenance and the unhealthy habit of using reserve funds to subsidize basic government operations, the press release states.
The formation of the advisory committee builds on a series of steps to correct the city’s financial trajectory.
“The concept of accessing the remarkable citizen talent that we have in Madison by creating the committee is a sound one,” Madison Mayor Pro Tem Eric Joyce said. “I applaud City Manager Klimm’s continued efforts to encourage citizen involvement.”
When formed, the committee will serve as a layer of transparency and community involvement as the city prepares for steep budget cuts and necessary reforms. The committee will work directly with Klimm to analyze departmental expenses line by line.
The city says its primary goal is to identify areas where it can streamline operations, eliminate inefficiencies, implement creative service delivery reforms, and free up capital for urgent infrastructure repairs without resorting to massive tax hikes.
By bringing residents to the table, the city hopes to build consensus on a strict budget strategy that prioritizes critical needs over non-essential wants.
“One of Madison’s greatest strengths is the extraordinary talent of its citizens,” Councilman Jim Malanowski said. “For a community our size, we are blessed with individuals who have led businesses, managed complex organizations, and solved difficult problems. They also share a deep respect for the legacy entrusted to us. The finance committee gives us an opportunity to harness that experience — to take a careful, comprehensive look at our financial future and chart a responsible course for the years ahead.”
Klimm said the city would announce further updates on the committee's formation in the next few weeks.