20 Safest Cities in Alabama: Safest Places to Live in AL

 

View Mobile SiteView BlogView Twitter Feed

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
City13.30%13.00%
Park Board  2.97%  1.04%
Library  3.38%  2.60%

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