2027 Budget - Where Does the Money Come From?
The City Council will begin reviewing the proposed Fiscal Year 2027 budget on Tuesday, September 8. The hearings will give the Council an opportunity to examine the proposal fund by fund, make adjustments and determine the City’s priorities before considering the final budget, Monday, September 28.
During this first budget hearing, the City Manager will present updates to the overall budget and discuss revenue available to support it. One important source is sales tax. Broken down, that sales tax looks like this:
- Four cents go to the State of Alabama.
- Two cents go to Jefferson County.
- Four cents go to the City of Homewood, and then within that:
- One penny is dedicated to the Homewood Board of Education.
- One-quarter penny supports capital projects.
- The remaining City sales-tax revenue supports other City needs.
In the proposed budget, each penny is expected to generate approximately $11.57 million. That estimate matters. If sales tax collections are higher or lower than expected, it can affect how much the City can spend. The Council will consider City’s estimated revenues, how much money should be kept in reserve and what level of spending can be sustained long term.
The presented General Fund is approximately $77.9 million, but that number will change based on information gathered since the presentation on August 10th. The Council will also make changes throughout the hearing process. The proposed budget was prepared under Homewood’s new council-manager form of government. Under the new process, the City Manager develops and presents a proposed budget, and the City Council reviews, revises and ultimately adopts the final spending plan.
All budget hearings are open to the public and will be live streamed and recorded. Additional hearings are scheduled for September 15, 17 and 21, with September 24 reserved for a final hearing if needed. The Council plans to consider adoption of the FY27 budget on Monday, September 28. Fiscal Year 2027 begins October 1. All figures remain proposed and are subject to change until the City Council adopts the final budget.
Complete budget hearing schedule:
https://bit.ly/4bJvpSd
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