The Madison City Council approved the budget for FY2026 during a called meeting on June 27 at City Hall.
According to City Manager John KIimm, the city is projecting total general fund expenditures of $6,659,375 and a total budget of $21,774,394 for the upcoming fiscal year, which reflects an overall decrease in spending compared to the current budget year.
Madison expects to collect $2,134,000 in property taxes and $1,650,000 in sales tax next year, as part of total revenues of $6,506,200.
As always, the city’s police department will be its biggest expense with a proposed budget of $2,188,150 for next year, an increase of $135,000. The city’s fire department will cost $453,300, an increase of $43,900 over the previous year.
Klimm said the police department will add one full-time employee and the fire department will add one part-time employee. All other departments will continue with the same number of staff members.
The city will also spend $1,311,780 on maintenance of its buildings and properties, an increase of $117,880. Expenses for the Planning and Development Department are also expected to increase, rising from $845,450 in 2025 to $963,300 in 2026.
In a letter addressed to the council included in the city’s budget book, Klimm said the goal is to “strengthen the city’s long-term financial health. We accomplished this over the past two years, by tightening our belt through budget cuts, government consolidation, improved property management, service regionalization, privatization of services and other proven efficiency measures.” Klimm has long championed a budget process that “not only explains what is being requested but also justifies the requested funds.”
Department managers were asked not only to present a proposed spending plan but also to articulate what was accomplished this past year and what the department’s goals are for the requested spending level next year, according to Klimm.
“The assumption contained within incremental budgeting is its fundamental flaw,” Klimm said. “Funding requests based on last year’s funding levels are not based on performance goals but are a function of last year’s spending. Citizens deserve and need more information and transparency. Most importantly, they need to believe that the sacred fiduciary trust given to the city, is in fact, sacred.”
Klimm has been critical of user fees not covering operational costs since he came on board a little more than three years ago.
City documents say current water and sewer rates are too low to account for proposed capital expenses, and residential solid waste rates won’t cover leaf and limb pick up, junk truck, and other expenses.
“We implemented the second year of a multi-year approach to covering costs last year,” Klimm said. We continue by including an increase in water, sewer, and sanitation for next year.
Madison is also attempting to address aging infrastructure issues, according to Klimm.
“For over a century, the city’s Public Works Department has worked diligently to maintain this aging infrastructure, often under tight budget constraints and with limited resources,” Klimm said. “However, the reality we face today is stark. Much of this infrastructure — such as gravity sewer lines, asbestos-concrete water mains, and vintage gas service lines — has reached or exceeded its intended lifespan.”
Klimm said the cost of materials, labor, and repairs has risen sharply, and operating budgets have not kept pace. In addition, Madison’s population has increased from 3,393 in 2017 to 5,308 in 2025.
During the brief meeting, other business included Madison Police Chief John McIlvaine informing the council that the creation of the Madison Police Foundation has progressed to the point where a board of directors needs to be established to oversee the foundation.
McIlvaine said he would nominate one member and asked each council member to nominate a candidate; Mayor Fred Perriman then nominated two candidates.
McIlvaine said that appointments should be made by the end of August said.