Council hears FY24 budget plans from city departments

Lloyd Shelton was leaving the budget meetings of the Mountain Brook City Council on Aug. 24 when he recalled another meeting he had attended in the same room. 

“We had some residents several months ago now (who said), 'This isn't a whole lot of money,'” the councilman said, recalling a resident request for the city to fund a project. “I said I just left a meeting where we have $20 million worth of projects on the board.  

“You're right. If I look only at your one project, that's not a lot of money,” he said. “But over these next three to five years, we're going to be spending $20 million.” 

The city council heard from the heads of the city’s various departments, each presenting their budgetary plan for fiscal 2024. The council will ultimately consider the department requests and determine how the city’s funds will be used. 

“Time and money are finite resources and we have to spend both of them wisely, individually as well as the city,” Shelton said. “We've got to just be prudent with how we spend it.” 

Assistant City Manager and Finance Director ​Steven Boone said Mountain Brook’s general fund is in great shape, but city leaders will have to exercise caution dealing with potential capital projects.  

“We just are going to have to be careful about the capital side of the budget, the infrastructure, equipment and facilities,” Boone said. “That capital could be a big drain on the budget. We just have to monitor that and be careful going forward.  

“If the capital demands continue at the pace they have, we may have to look at some other revenue opportunities,” Boone said. “I'm not saying that's a foregone conclusion, but we just have to be mindful of that.” 

Two months ago, the council opted not to raise the tax on groceries bought in the city. Boone explained then that the state legislature accomplished its mission of reducing the state sales tax on groceries. Legislators also tacked on a provision that restricts cities at whatever rate they currently tax groceries.   

“There are very few revenue streams that will generate any appreciable money,” Boone said. “We could impose a garbage fee. We had an occupation tax at one point (but) nobody wants an occupational tax. 

“Sales tax makes up about 27% of the budget,” he added. “That would be the most effective and efficient tax, if one were needed. Everything else would just be very small. Sales tax is one that makes the most sense if it's determined that we need additional revenue in the future.” 

The council has heard several requests for funding in the past months, from stormwater challenges to installing sidewalks and more. Boone said city leaders must prioritize what they can do and when they can take on those projects. 

“We have close to a six-month reserve,” the finance director said. “The budget that we're adopting will have us close to that goal. We've had a lot of projects that got concentrated over a very short period of time that kind of put a lot of stress on the capital budget.” 

Shelton, an accountant and chair of the city’s finance committee, noted some of the funding requests that have come before the council. Those include a Diaper Row sidewalk project from English Village to Vulcan, a pedestrian bridge over U.S. 280, and the Birmingham Botanical Gardens paving project that will be done in cooperation with the City of Birmingham.  

“I think that's why we're being cautious going forward into this next year in terms of capital projects,” Shelton said. “We've already got $20 million on the books so we've got to build up our reserves while we do these projects and just be careful. Time and money again are finite. It's not that they're not worthy projects, but the timing may just not be right. We've got to find the right time.”