Hoover City Council Analyzes $181 Million Budget Proposal for Fiscal 2025

Hoover City Council Reviews Proposed Budget for Fiscal 2025

Hoover, AL – The Hoover City Council is set to meet today to deliberate on Mayor Frank Brocato’s proposed budget for the upcoming fiscal year 2025, which is scheduled to commence on October 1. This special council meeting comes after Mayor Brocato unveiled his budget proposal during a meeting on September 12, 2024.

A Closer Look at the Budget Numbers

At $181 million, the proposed budget reflects a 6.8 million increase from last year’s original budget, marking a 3.9% increase overall. In addition to this increase in spending, the city anticipates revenues of around $179 million, which represents a healthy 7% growth from the original fiscal 2024 budget.

The proposed general fund budget includes projected revenues of $170 million against expenditures of $162 million. One noteworthy aspect of the proposal is a planned 1.5% cost-of-living adjustment for city employees, alongside standard 5% step raises. Collectively, these adjustments would raise the city’s personnel costs to approximately $91.5 million.

Addressing Staffing Needs

To bolster the city’s financial operations, Mayor Brocato’s budget includes provisions for six new positions, primarily within the Finance Department. Positions sought include a senior financial analyst and a revenue auditor, among others. This decision follows a recent forensic audit, which flagged the city’s Finance Department as understaffed compared to similar municipalities. It is expected that these new roles will enhance the department’s ability to handle financial management effectively.

“It’s critical we strengthen our financial operations, ensuring the department is fully staffed to manage the city’s financial needs,” Brocato stated. In total, adding these six full-time positions would cost the city around $660,000.

Investments in Employee Compensation

The mayor’s proposal also includes salary adjustments for eight existing employees, costing an estimated $63,000, plus an increase in the car allowance for department heads from $400 to $500, amounting to an additional $14,400 in costs. These changes would raise total personnel costs to $92.2 million, significantly up from $68 million in 2020.

Capital Projects and Financial Reserves

Mayor Brocato is keen on using approximately $6 million from the anticipated excess in the general fund to address special revenue funds and **direct** $2.5 million towards various capital projects. Brocato has emphasized the importance of maintaining competitive salaries while ensuring the city’s financial stability through a responsibly managed reserve, projecting an initial general fund balance of about $72.7 million.

The upcoming fiscal year’s capital projects are estimated to total around $12 million. However, understanding that general fund revenues are not forecasted to rise significantly, the mayor plans to utilize $3.6 million from the city’s budget stabilization fund for additional projects.

Economic Considerations Ahead

In her remarks, Chief Financial Officer Jennifer Cornett shared insights on recent revenue trends. While the city has benefited from notable revenue increases in recent years, she noted that revenues are beginning to flatten. Both Cornett and Brocato acknowledged the economic uncertainties, particularly concerning the upcoming presidential election and the impact it could have on local finances.

“Although we can’t predict the economy ahead of us, I know we are all concerned about the outcome of the presidential election and how that will influence our numbers,” Brocato mentioned. The variances in shopping habits, notably the shift towards online purchasing, have also been addressed, with officials noting that this affects local sales tax revenues.

Upcoming City Council Meeting

Today’s City Council meeting is crucial as council members make decisions that will shape Hoover’s budget for the coming year. Residents are encouraged to stay informed as discussions unfold regarding this significant planning document, aimed at ensuring Hoover continues to provide essential services while maintaining its strong financial footing.