Committed to transparency and fiscal stewardship
The Madison Metropolitan Sewerage District operates from two budgets — our Operating Budget and our Capital Improvements Budget. Together these budget documents and finance strategies provide a financial roadmap for how the District will allocate and prioritize projects and operational needs for the fiscal year, and in the case of the Capital Improvements Budget, with an eye to the future.
Operating Budget
The Operating Budget funds the operation and maintenance expenses for the day-to-day collection, conveyance and treatment of wastewater. It also provides income to the debt service fund and the capital projects fund. The primary revenue source for the operating budget is sewer service charges paid by our 24 owner communities. The District does not directly bill homes and businesses. Communities bill these fees, as well as any additional fees, as part of their utility charges. The District’s fiscal year begins on January 1 of each year.
Capital Projects Budget
The Capital Projects Budget funds the construction of new and replacement facilities. The primary revenue sources for this budget are Clean Water Fund loans, interceptor and treatment plant connection charges, and transfers from the operating fund.
Capital Improvements Plan
Each year, the District approves its draft Capital Improvements Plan or CIP, in late summer. The CIP is updated annually to reflect capital projects needed to keep the District’s assets in good working order. Projects and a budget summary are included for a six-year time period using the best information and cost estimates available. Summaries of capital projects are included in this document; full business cases are available upon request.
The draft CIP is finalized and incorporated into the annual budget in the fall. A draft version of the CIP is available here until the budget is approved, approximately July through November each year.
Annual Budget
The District’s budget process spans several months, with multiple opportunities for review and comment by our Commission and the public. The budget is approved in late October for the next fiscal year, which allows our owner communities to prepare their own budgets. The annual budget includes the capital budget, operating budget and debt service budget to provide a holistic view of the District’s needs and planned expenses. The previously approved draft CIP is also incorporated into the annual budget. Budgets from the last five years can be found on the Plans & Reports page.
Audited financial statements
The District is committed to transparency and being good fiscal stewards. We are audited annually to review our business activities and fund information. We provide the most recent year’s audited financial statements on our website for review.
Service Charges
Service charges are how the District calculates rates for wastewater services and are the District’s primary source of revenue. Our municipal owner communities pay the charges to our wastewater utility; we do not bill households and businesses for wastewater services directly.
Proud recipient of the GFOA budget award
The District is proud to be a 10-year recipient of the Government Finance Officers Association of the United States and Canada (GFOA) Distinguished Budget Presentation Award. To receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, operations guide, financial plan and communications device. We are honored to have received this award since 2013.
