Woodfin presents COVID-affected city budget to Council

Mayor Randall L. Woodfin presented his proposed Fiscal Year 2021 operating budget — one that reflects the human and financial toll of the ongoing COVID-19 pandemic — to the Birmingham City Council at its regular meeting on Tuesday, Aug. 18.

Woodfin’s proposed budget for Fiscal Year 2021 is $412 million. The 2020 budget was $451.4 million.

The mayor told the Council that the city faces a projected $63 million shortfall in business tax revenue through June 30, 2021, due to COVID-19.

As Woodfin has stated numerous times since the beginning of the pandemic, the city’s budget relies heavily on sales, use and occupational taxes.

However, he said that basic city services, such as police and fire, will not face cuts, and that such priorities as neighborhood revitalization will continue.

Among other cost-cutting measures, the mayor announced that the city will furlough about 7% of the city’s workforce. 

This includes 259 full-time and 114 part-time employees who cannot currently do their jobs because their facilities are closed during the pandemic. 

“These are difficult choices to make,” Woodfin said in a statement. “Our employees are our greatest asset and we are thankful for their service. But we must remember our duty is to the people who make up the 99 neighborhoods of Birmingham. These actions ensure no reductions take place in the basic services the city provides to the people.”

The proposed budget also defunds 447 vacant positions, thus saving another $15.8 million. The city will suspend nine paid holidays this fiscal year for all employees.

Woodfin told the Council that he will reduce his own salary by 10%, and that all of his appointees will see their salaries reduced by 3% to 10%. 

The proposed budget cuts funding to various non-city boards and agencies by $12.6 million, reduces economic incentives by $1.7 million and saves another $3.8 million by restructuring some debt.

Woodfin said that, despite the overall budget cuts, the city will maintain funding for neighborhood revitalization, including $10 million for street resurfacing, $3.5 million for demolition and $1.25 million for weed abatement.

The proposed operating budget increases the city’s contribution to the pension fund by $3.8 million for a total contribution of $28.4 million. 

In a two-year period, the city has increased its contribution by 70%, the administration said.

For more information about the budget, go to birminghamal.gov/2021budget.