Who would get raises? Key takeaways from Montgomery's proposed 2025 budget

Mayor Steven Reed proposed a budget for fiscal year 2025 of $331,625,628 at Tuesday's city council meeting. That would be 6.5% more than the 2024 budget.

The new budget addresses raises as well as grants obtained by the city. "I have confidence that this proposed budget will allow the city to move forward in building a better Montgomery for its citizens," Reed said.

Here are some of the key takeaways from the proposed 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.

An increase in business licensing fees would require city council approval and the passage of an ordinance. Business licensing fees have 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.

The council will discuss the budget at a public meeting Sept. 5 and will vote on the budget at a later date.

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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: Who would get raises? Key takeaways from Montgomery's proposed 2025 budget