Funds from a budget surplus for fiscal year 2019 will provide a pay raise for city employees and capital improvements for Carver Theatre, as well as other projects.
Mayor Randall L. Woodfin’s office recommended and the Birmingham City Council approved four items to be funded by a portion of the surplus.
· A one-percent Cost of Living Adjustment (COLA) for city employees ($3.2 million)
· Additional funds needed for Eastern Area Landfill New Cell Construction ($2.6 million)
· Additional funds needed for Sixth Avenue Viaduct Drainage Improvements ($1.2 million)
· Additional funds needed for Carver Theatre – Jazz Hall of Fame Renovation ($900,000)
“I want to thank the city council for working with me to take care of our employees,” Mayor Woodfin said. “We made a commitment that if we came into additional resources through additional funding or a surplus we would make our employees whole by providing a cost of living adjustment, mid-year. With 120 days left in this fiscal year, we were able to make good on that commitment and take care of our employees.’’
The City of Birmingham collected $16.3 million more than expected in tax revenue in fiscal year 2019. An additional $1 million was saved from a reduction in expenditures.
The increased revenues included:
· A $5 million increase in business license revenue.
· A $3 million increase in occupational tax revenue.
· A $1.6 million increase in ad valorem tax.
The current budget, Fiscal Year 2020, is $451 million. The fiscal year ends on June 30, 2020.