Members of Madison’s finance committee approved Mayor Paul Soglin’s recommendation to ban using borrowed reserve funds in future city operating budgets at a Board of Estimates meeting Monday.
The Board of Estimates voted four to one on Soglin’s recommendation, on which Common Council members will take a final vote at their Dec. 11 meeting.
Soglin said the practice of using reserve funds, or money set aside for one-time uses, in the city’s operating budget is an “abomination” and leads to poor finance practices.
“I never want to preside over a city that’s relying on borrowed funds for its operating budget,” Soglin said.
Ald. Mike Verveer, District 4, agreed with Soglin’s recommendation and voted in favor of the legislation.
“The best fiscal policy is not to use these funds for ongoing annual operating budget expenses,” Verveer said.
