Mayor Woodfin presents $451 million 2020 budget to Birmingham City Council

Mayor Randall Woodfin presented a proposed city operating budget of $451 million for fiscal year 2020 to the Birmingham City Council during its regular meeting for Tuesday, May 14.

The budget represents a $10.5 million increase over the city’s budget for fiscal year 2019 and prioritizes neighborhood revitalization and fully funding the city’s pension fund, according to Woodfin.

“We have implemented a new focus on fiscal responsibility by targeting our obligations, investing in our people and equipment and preparing for unseen challenges in the future,” Woodfin said in a statement.

There will be a projected $6.5 million increase in the city’s revenue in the new fiscal year, along with $3 million in commercial construction fees and revenue from the state of Alabama’s recently approved gas tax, Woodfin said.

The mayor’s budget contains a total of $14.25 million dedicated to neighborhood revitalization.

This includes $8 million for paving streets and fixing potholes, an increase of $5.5 million over fiscal year 2019; $4.75 million for weed abatement and the demolition of abandoned houses, an increase of $1.5 million over fiscal year 2019; $500,000 for code enforcement technology; and $1 million for the city’s Land Bank Authority, an increase of $650,000 over the previous budget.

The $8 million for paving is in addition to $5 million for paving that was already appropriated, according to Woodfin.

The budget will increase the city’s contribution to the pension fund by $5.8 million, for a total contribution of $24.6 million in fiscal year 2020. There will also be some cost cutting by the pension board, according to Woodfin.

As a result, fiscal year 2020 will be the first in years during which the city will fully meet its obligations to the fund, the mayor said. This was necessary due to the “massive neglect” the pension system has faced for years, Woodfin said.

The new budget will provide longevity pay and an additional $3 million to help employees pay for health insurance.

Other items in the budget include a $2 million investment in the Birmingham Promise, secondary and post-secondary workforce development program. The goal is to create apprenticeships and job opportunities for the city’s youth, particularly high school juniors and seniors, according to Woodfin.

The budget includes $1.5 million for a “real-time” crime center for the Birmingham Police Department and improved digital record keeping at City Hall.

Neighborhood revitalization, including demolishing abandoned structures, is critical, according to Woodfin.

“All 99 neighborhoods deserve our undivided attention and resources,” Woodfin said.

The mayor said that during a visit to some residents in the Central Park community a few weeks ago, he was appalled to see small children living next door to abandoned, burned-out houses.

“No child should live next to a burned-out structure in our city,” Woodfin said. “We have a moral responsibility to ensure the health and safety of all residents."

The city has removed more than 450 structures since January 2018, according to Woodfin.

The mayor also said that he understood and shared the frustration some residents feel with the land bank. “It is not moving at the speed we need and want it to,” he said.

In addition to an increased appropriation for the land bank, the entity will work with the Jefferson County Circuit Court to "fast track” its transactions, Woodfin said.

In order to save money in the budget, Woodfin said his administration continued to cut vacant or unfilled positions. Ninety-four of those positions will be cut this year, he said at a press conference following his presentation to the council.

The council approved the city's fiscal year 2019 budget of just over $436 million in June 2018.