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Budget Highlights

2017 Budget Highlights

The City Council adopted the 2017 budget at its September 12, 2016 meeting with a General Fund surplus of $766,000. The General Fund revenue budget totals $36,962,095 representing a 3% increase from last year’s budget. Some of the larger General Fund revenue line items include:

Source of Revenue2017      2016       % Change
Real estate tax$14,809,000$14,311,0001.4%  
Sales tax11,141,00010,640,0001.4     
License and franchise fees3,336,0003,173,0000.4     
Construction permits905,0001,137,000(0.6)    
Fines549,000573,000 (0.1)    
All other    6,222,095    6,050,270           0.5     
Totals   $36,962,095$35,884,2703.0%  

Expenditure budget highlights include:

  • Labor costs (salaries and benefits) total $22. million (59% of General Fund expenses).
  • $300,000 is to be deposited into an irrevocable trust [created in 2009] to be used for post-employment medical benefits. Cumulative deposits into the trust through the end of 2017 will be $2,400,000. The actuarial accrued liability for post-employment medical benefits as of reported in the audited financial statements as of September 30, 2015 totaled $3.9 million.   The unfunded actuarial accrued liability as of September 30, 2015 was $2 million.
  • Medical premiums will increase 4% from 2016. Medical premiums for active employees and retirees to be paid by the City in 2016 total $2.05 million.
  • $3.7 million will be transferred from the General Fund to the various Capital Projects Fund for the eventual replacement of property, plant,
    and equipment and for infrastructure projects planned for 2017.
  • The waste disposal contract fees total $2.8 million for 2017. The contract expires September 30, 2019 (Resolution No. 2016-045 adopted April 11, 2016).

The City’s actuarial accrued pension liability as of September 30, 2014 (the last accounting available from the Retirement Systems
of Alabama) totaled $23.8 million excluding unamortized investment gains of $3 million. The City’s budgeted pension expense for 2017 is $1.9 million.  The City's pension contribution rates expressed as a percentage of covered payroll are as follows:

UnitTier 1Tier 2
Park Board  2.97%  1.04%
Library  3.38%  2.60%

General Fund expenses by natural classification and department are illustrated below: