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 Revenue||2017||2016||% Change|
|Real estate tax||$14,809,000||$14,311,000||1.4%|
|License and franchise fees||3,336,000||3,173,000||0.4|
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:
|Unit||Tier 1||Tier 2|
General Fund expenses by natural classification and department are illustrated below: