Montgomery City Council approves new budget with raises for police, city workers

The Montgomery City Council approved Mayor Steven Reed's budget for fiscal year 2025, marking a 6.5% increase from the previous year's budget.

The council voted for a budget of $331,625,628 at Tuesday's meeting that includes raises for police and city workers. "I have confidence that this proposed budget will allow the city to move forward in building a better Montgomery for its citizens," Reed said.

The city council is paying for the increased budget partially by raising in business license fees, a move they also made official at Tuesday's meeting. The council amended some of the code to appease homebuilders in the area. The council will address this portion of the code at a later date.

City Councilman Andrew Szymanski was the lone member who voted against the increase to business licenses. He was also the only member who did not vote for the budget. Szymanski abstained from the vote.

Here are some of the key takeaways from the budget.

Raises for police and city workers

Under Reed's proposal, all city employees will receive a cost-of-living-adjustment raise at 5%. A cost-of-living-adjustment raise has not been provided to the city employees since before 2012.

The budget also includes merit raises as well as a 15% raise for Montgomery Police Department sworn officers.

Rising revenue, higher business license fees

The city's sales-and-use tax revenue is projected to rise 5% over the previous year. That combined with a hike in business licensing fees is expected to allow for the increased city expenditures.

Business licensing fees had not been raised since the 2009 fiscal year budget. That was the first time in 40 years that the city increased those fees.

Revenue is made up of sales-and-use taxes at 49%; valorem taxes, business license and sanitation fees at almost 36%; and lodging, rental and miscellaneous revenues at about 15%, Reed said.

Falling long-term debt

The city's long-term debt is at about $26 million. Comparably, the city's debt sat at $35 million in previous years.

Funding from Grants Department

Reed's administration created the city's Grants Department. That department has been able to procure grant funding of more than $50 million in the current year. These grants support infrastructure and many other programs, Reed's office said.

Alex Gladden is the Montgomery Advertiser's public safety reporter. She can be reached at agladden@gannett.com or on Twitter @gladlyalex.

This article originally appeared on Montgomery Advertiser: Montgomery City Council approves new budget with raises for police, city workers