City to use budget surplus to give COLA to employees, fund 3 other projects

Thanks to a budget surplus for Fiscal Year 2019, the City of Birmingham will be able to give a raise to its employees and fund some important capital projects.

The city collected $16.3 million more than expected in tax revenue in fiscal year 2019 and saved an additional $1 million from a reduction in expenditures, according to a news release from Mayor Randall L. Woodfin’s office.

At its regular meeting for Tuesday, Feb. 10, the Birmingham City Council approved the following items to be funded using the extra money.

• A one-percent cost of living adjustment for city employees ($3.2 million)
• An additional $2.6 million for the construction of a new cell at the Eastern Area Landfill.
• Another $900,000 toward an ongoing renovation of the Carver Theatre and the Jazz Hall of Fame downtown.
• An additional $1.2 million for drainage improvements at the Sixth Avenue Viaduct.

Flooding along Sixth Avenue South has been a serious issue for years, said Councilor Crystal Smitherman.

“I’m glad that the surplus money in our budget can be used to fix an issue like this, one that impacts nearly every single person who lives on this side of town,” Smitherman said.

The budget surplus included a $5 million increase in business license revenue, a $3 million increase in occupational tax revenue and a $1.6 million increase in ad valorem tax, according to the news release.

Taking precautions

There are currently no cases of coronavirus confirmed in Alabama, but the city is putting protocols into place.

For example, all non-essential travel for city business by city employees has been suspended. 

For updates, visit birminghamal.gov/coronavirus.