BUDGET HEARING - SEPTEMBER 8, 2026
The City Council reviewed the proposed $76.9 million General Fund budget, focusing on sales tax, property tax and other major revenue sources. The discussion also covered updated revenue estimates, city contracts, debt payments and plans for clearer monthly financial reports.
All budget hearing details:
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Details
Proposed Fiscal Year 2027 Budget Revisions; Council reviewed changes that lowered the proposed General Fund budget from about $77.9 million to $76.9 million. Updates included additional Centennial funding, holiday lights for West Homewood, zoning ordinance work, a new internal work-order system, updated service contracts and moving $1 million for retiree health benefits into the current year. Discussion Only.
City Contracts and Bidding; Council discussed how the city awards contracts for services such as tree removal, HVAC maintenance, pest control and creek cleaning. Plans are to collect and review all city contracts, identify when they expire and look for opportunities to seek bids or combine services across departments to save money. Discussion Only.
General Fund Revenue; Council reviewed projected revenue from sales and property taxes, business licenses, permits, municipal fines, parks activities, franchise fees and other sources.
Sales and Property Taxes; Council reviewed how the city’s four-cent sales tax and property-tax collections are divided. Discussion Only.
Debt Service and Reserves; Council discussed whether more sales-tax revenue should be reserved for debt or used to pay bonds sooner. Early repayment may not make financial sense because of the bonds’ low interest rates, but the City expects to propose setting aside a full year of debt payments, about $11.5 million, in a dedicated account. Discussion Only.
Tax Abatements; Council asked for a complete list of the city’s active tax-abatement agreements, including their expiration dates and revenue limits. They said this information will help the city anticipate when additional sales and lodging tax revenue may become available. Discussion Only.
Cash, Fees and Recreation Revenue; Council discussed credit-card processing costs, cash-handling procedures and how private instructors pay to use city recreation facilities. Officials will review whether card fees should be passed along to customers and provide more information about recreation agreements and revenue controls. Discussion Only.
Investment Income; Council asked for clearer reporting of interest earned through Synovus, Raymond James, First Horizon and other city accounts. Officials said future monthly financial reports will include investment accounts so council can track balances, earnings and transfers more easily. Discussion Only.
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