A combination of increased revenues and decreased expenses has the city of Birmingham, Ala. with a $10 million surplus in fiscal year 2018.
Birmingham Mayor Randall Woodfin announced the news during Wednesday’s Committee of the Whole meeting explaining the city saw a 5 percent growth in revenue over the previous fiscal year and was also able to reduce spending.
“Spending was down due to our diligent work with departments to manage budgets efficiently and effectively based on need rather than want,” the mayor said.
“The more than $10 million surplus represents our core values of efficiency, effectiveness and accountability,” he added. “We want to be transparent with you about the funds available and our intentions for those funds.”
What will the city do with the money go?
Woodfin says 20 percent of the $10 million must go to savings, per the City Council-passed Fund Balance Policy, which leaves $7.5 million to use elsewhere:
- $4 million: has been proposed to go to the Neighborhood Revitalization Fund for street resurfacing and sidewalk and pothole repair. That breaks down to approximately 250 road patches; three miles (or 15,000 feet) of sidewalk; and 12-15 miles of road paving, or about 200 blocks.
- $500,000: For the Deferred Maintenance Program to maintain equipment to become more responsive to resident and neighborhood needs
- $350,000: For the city’s Information Management Services department for tech upgrades.
- $600,000: To go toward the Land Bank Authority.
- $1.1 million: To remain the neighborhood revitalization fund.
“This upgrades computer and data infrastructure citywide to modernize the city and improve code enforcement,” Woodfin said. “This represents our absolute priority of serving the needs and revitalization of our 99 neighborhoods.”