In its annual budget planning process, the Madison Borough Council is considering a proposed 2.2% tax increase for the 2021 tax year. The initial budget discussion began at the February 8 Borough Council meeting, with council members hearing presentations from each of the departments within the Borough. Discussion continued at the council's February 22 meeting, and several members of the public asked the council to seriously consider whether the proposed tax increase is truly necessary. At least three members of the public specifically requested that the borough council provide "full transparency of all the financial resources at their disposal."
Madison Republican Committee Chairwoman Kathy Dailey challenged the all-Democrat Borough Council: "I'm very confident that, working together with our Borough Administration, you can all find a smart and workable way to keep taxes at their current levels without compromising services... or perhaps even better, you can find a way to lower them in acknowledgement of the hardships of the pandemic."
Former Borough Council member Patrick Rowe urged the governing body to take additional time to better assess the borough's financial position and remarked that "Congress is in the process of passing a third COVID relief bill, which will pay out $1.9T. That includes a reported $3M for the borough and school district of Madison. Assuming that the BOE receives 2/3 or 3/4 of the $3M, that still leaves the borough with $750K to $1M, which will more than plug any of the relatively small holes in the budget that are driving a tax increase and a larger than normal infusion of cash from the water and electric utilities." Rowe also advised the council to request a report that shows "all the fund/free balances at the end of the year from 2010 through the end of 2020, including all of the reserves that have been established in the general fund, and the two utilities."
Speaking on behalf of the Madison Republican Committee, Chairwoman Kathy Dailey pointed out that the 2020 end of year free balance for the Electric Utility was up about $160K over the prior year, even though council increased the utility surplus transfer to the borough during 2020. Addressing the mayor and council members, Dailey asked them to "work together" with our Borough Administration to "find a smart and workable way to keep taxes at their current levels without compromising services," as well as keeping electric and water services priced "at their current rates." She urged the Borough Council to "keep in mind that we have had an economic shutdown for the the last year, and there are a great number of residents who are hurting financially, especially those who own or work for small businesses. I'm confident that you can keep the taxes either the same or - perhaps even better - you can find a way to lower them in acknowledgement of the hardships of the pandemic."
Final budget discussions are currently scheduled to take place at the March 22 Borough Council meeting,