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Montgomery mayor says city finances in best shape in years

Montgomery reported financial improvements, added reserves (Sources: WSFA 12 News)
Published: May. 18, 2022 at 5:58 PM CDT
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MONTGOMERY, Ala. (WSFA) - The future looks bright financially for the city of Montgomery.

Mayor Steven Reed, speaking at Tuesday night’s city council meeting, said the city is in a better financial position than it has been in years. He pointed out that lodging tax collections are up 50% compared to 2021 and that sales and use taxes are also up by approximately 7%.

While revenues are up, expenses are down. The mayor noted the city will actually be able to add around $4 million to its reserve fund.

“Being able to add to the reserve will continue to put the city in a better financial position,” Reed said, “and I’m committed to increasing the city’s reserve with no less than a million dollars each fiscal year. However, the more we can save now, I want to show that the administration will reach this goal of getting the city’s reserves closer to 20% of the general fund budget.”

Currently, the city and county are working together to determine how to spend close to $85 million in American Rescue Plan Act, or ARPA, funds that were distributed to states during the height of the pandemic.

Community input into what projects should be funded is welcomed by visiting https://montgomerythrive.org/

The city and county have until 2026 to spend the ARPA money they’ve received.

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