Mayor presents proposed budget for 2018-19 fiscal year

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Mayor Scott McBrayer presented a proposed budget for the 2018-19 fiscal year to the Homewood City Council on Aug. 27, which must be finalized and approved by Oct. 1.

The budget is based on $133.3 million in city revenue funds, city Finance Director Robert Burgett said. However, that number includes $55 million from the city's $110 million bond issue, which is projected to be spent on projects for the parks, school system and public safety headquarters this upcoming fiscal year.

McBrayer's budget proposal included $52.7 million in the general fund, which covers most city operating expenses, as well as $8.2 million in capital projects and $15.1 million in debt service payments.

The budget the council approved for the 2017-18 fiscal year was based on $50.1 million in anticipated revenue. The increase in revenue is partly due to the 1 percent sales tax increase the council approved in 2016, which is being used for debt payments on the $110 million bond, with leftover funds put toward other city projects.

Records from the finance department showed the city collected a total of $30.3 million in sales tax revenue in the 2016-17 fiscal year — when the new sales tax went into effect partway through the year — compared to $23.8 million in the 2015-16 fiscal year. While total sales tax numbers are not yet available for the 2017-18 fiscal year, the city Finance Department projected a higher total at its mid-year review in May since the tax increase has been in effect for the entire year.

The mayor said at the Aug. 27 meeting that as of June, the city had $153.1 million in funds on hand, including $11.2 million in the rainy day fund. He also noted that he would like to keep spending conservatively enough to end the fiscal year with a surplus, as the city has done the past several years. Homewood typically uses part of that money for end-of-year employee bonuses, as well as keeping around $400,000 in funds on hand for the next fiscal year.

McBrayer's proposed budget would have a balanced general fund, with expenses paid for out of anticipated revenue, but the capital projects fund exceeds its projected revenue by about $1.8 million. The council could choose either to use carryover funds from the current fiscal year or to delay some projects so spending does not outpace revenue.

Capital projects the mayor recommended for 2018-19 include $1 million in street paving, engineering for the 18th Street beautification project, funding for the Hollywood pedestrian bridge and the Lakeshore Drive/Interstate 65 diverging diamond interchange, which has bid dates set by ALDOT for January 2019.

The budget includes a 2 percent cost-of-living payroll adjustment for employees, as well as some funding for merit raises and pensions. Though the city's employee wellness screens resulted in a "preferred" rating, McBrayer said Homewood is anticipating a 6 percent increase in insurance premiums, and he recommended the cost increase be split with the city covering half and the employees covering half.

As part of the budget, the Homewood City Schools system would receive about $16.9 million from the city, of which roughly half comes from the city's sales tax revenue and half from property tax revenue. Homewood is seeking an exemption to the state lid bill, which would open up the option to vote on a property tax increase, in November.

Copies of the complete 2018-19 budget proposal were distributed to council members tonight for review. The finance committee will hold a series of meetings to discuss the budget in greater detail prior to a final vote by Oct. 1. The schedule of meetings has not been set, but Ward 3 Rep. and Finance Committee Chair Walter Jones tentatively set the first meeting for 4 p.m. on Sept. 10.

The city will post the mayor's budget presentation on its website.

While the budget was the main event at the City Council meeting, it also included a number of public hearings on sign variances and public nuisance properties.

The council unanimously denied a sign variance request for 201 Green Springs Avenue and a fence ordinance variance request at 300 Mecca Avenue, with Ward 5 Rep. Peter Wright absent. The property owners did not show up for either case.

A sign variance request for the KFC at 828 Green Springs Highway was dropped at the restaurant owner's request, as they plan to change their renovation plans to fall within city ordinances.

The other sign variance requests discussed tonight were more contentious. A request from Tire Engineers, 215 Green Springs Highway, was approved in an 8-2 vote, with Ward 1 Rep. Andy Gwaltney and Ward 2 Rep. Mike Higginbotham opposing. Higginbotham seemed unconvinced of the property owner's case that replacing its existing Tire Engineers sign with a similar Mavis Discount Tire sign for visibility was an adequate hardship to grant the request, since the sign would be far outside the city's allowed square footage.

A request from Smoothie King, 428 Green Springs Highway, was approved 8-2, this time with Higginbotham and fellow Ward 2 Rep. Andrew Wolverton opposing. Maya Mexican Restaurant, 308 Oxmoor Road, was approved for its sign variance request 8-1-1, with Gwaltney opposing and Higginbotham abstaining from the vote as he considered the request in a "gray area."

The council also voted to declare 1575 Valley View Circle and 1117 Hardwick Lane public nuisances due to overgrowth. Both have been previously in violation of city codes, and city attorney Mike Kendrick said the city has pursued three lawsuits against the owner of the Hardwick Lane residence, but have been unable to find her.

A public nuisance hearing for 218 Summit Parkway was carried over, as city codes enforcement officer Scott Cook said the owner hired a landscaper and significant work was underway to bring the property into compliance.

The council also:

  • Held a 10-minute executive session to discuss the sale of a parcel of land adjacent to 431 Green Springs Highway to a national or local restaurant chain. Kendrick said a sale contract is on the table, though he did not disclose the name of the restaurant chain, and there will be 60 days of due diligence before the deal can close.
  • Carried over a decision on a city-wide traffic study to clear up confusion on the chosen firm. The council discussed hiring Volkert Engineering on Aug. 20, but the mayor and Building, Engineering and Zoning Department employee Greg Cobb said the city had previously told ALDOT it would be hiring Skipper Consulting, though a contract had never been signed.
  • Approved the closing of Brookwood Village's streets on Sept. 13, 20 and 27 from 1 to 10 p.m. for the Brookwood Live! concert series. The series will feature Matt Carroll and the Browncoats, the M-80s and the Lava Lamp Band.
  • Approved a retail beer and wine license for Ono Poke, 934 Oxmoor Road, and a retail liquor license for Maya Mexican Restaurant, 308 Oxmoor Road. A special events alcohol license was also approved for the Magic City Mac N Cheese Fest, at Brookwood Village on Sept. 9.
  • Approved Troop 97 Scout Aidan Wright to work in the city right-of-way on the Homewood Forest Preserve to create an orienteering trail as part of his Eagle Scout project.