Following Madisonians’ vote earlier this year to approve a $22 million property tax hike, the city is projected to see a $20 million surplus by 2024’s end, The Capital Times reports. The forecast exceeds initial estimates of a $15 million year-end surplus.
The surplus would grow Madison’s rainy day fund to $104 million — the largest budget reserve in at least 30 years as a percentage of annual city spending.
Roughly half of this year’s projected surplus is due to $9.2 million in budget reserves that the city has not used but was originally set to help cover day-to-day costs such as workers’ compensation. The other half of the surplus comes mainly from interest income on city investments, which totaled around $10 million above budget. Revenues from building permit and parking violations are each set to total about $1.3 million higher than anticipated as well.
Despite the higher-than-expected surplus, the city’s general financial outlook remains unchanged.
