The Cullman City Council adopted the fiscal year 2026 budget on Sept. 29, ending debate and setting the city’s operating plan to take effect Oct. 1.

Council President Jenny Folsom, who presented the budget overview, said the general fund used actual prior‑year revenue of $59,186,795 as the starting point for next year’s plan. “When we plan for the budget, we don’t plan on an increase or decrease. We used what was actually collected to start our budget for this coming year,” she said.

The budget package includes a 4% across‑the‑board pay increase for all full‑time employees and an $800 annual PACE supplement to be paid in November. Folsom also said the city will absorb a 4.75% increase in health and dental insurance costs and a 9.25% increase in the retirement match for full‑time employees rather than passing those costs on to workers.

The general fund figures presented by the council exclude enterprise funds for water, sewer and sanitation, which operate on separate revenue streams. Folsom said Cullman will continue a five‑year, $600,000‑per‑year commitment to Cullman City Schools as part of a 10‑year capital campaign; she said local and property sales taxes are expected to give the school system roughly $11,450,000 this year, and that the city’s projected local funds to schools total $12,050,000.

Council discussion that preceded the vote reviewed department‑level highlights: police and fire equipment and personnel items, utilities projects, paving and street projects, and recreation‑related capital work. Council members made no amendments during the adoption motion; the council then voted to adopt the resolution to approve the FY2026 budget.

The council also approved related budget measures at the meeting, including adoption of updated employee pay matrices and position control for FY2026, which adds two positions (one police, one sanitation); appropriations to local nonprofits through the community services contracts; and continued support for the Cullman City Schools capital improvement plan.

City staff told the council that a more complete budget breakdown is available after the meeting and identified a city staff contact for media requests.