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Committee hears status of 7¢/4¢ gas tax funds, 911 transition and court‑restricted accounts
Summary
City staff walked the finance committee through restricted special funds — including state gas‑tax accounts, the 9‑1‑1 transition to Shelby County and municipal court cash‑bond and corrections accounts — and said a $90,000 state grant will replace the city’s radio/recording equipment.
The Homewood Finance Committee on Sept. 24 reviewed a series of restricted special funds and the intended uses for each ahead of final budget adoption.
City Manager Glenn Adams described the 7¢ and 4¢ gas‑tax funds as state‑awarded accounts that must be spent for narrowly defined transportation purposes. “The intent of both of these funds is to 0 out every single year,” Adams said, adding the city is improving year‑end cleansing so balances are used for appropriate paving and traffic work.
Randy, the city traffic staff member who addressed the group, listed typical uses of the gas‑tax money, including traffic signs and traffic‑signal upgrades, and confirmed that the department expects delivery of one remaining vehicle in January tied to prior encumbrances.
The committee heard a separate presentation on the 9‑1‑1 fund from Brandon, who described the city’s ongoing contract transition with Shelby County. Brandon said the city had trimmed many 9‑1‑1 line items and that Shelby County’s contract includes an allowable annual CPI adjustment; he reported receiving official notice increasing a contractual line from $6.70 to $6.90. He also told the committee the state 9‑1‑1 board awarded the city a $90,000 grant to replace its radio/recorder equipment; the grant will be recorded as revenue and offset by a maintenance‑contract expense in the 9‑1‑1 fund so the account is budget neutral.
Adams reviewed municipal court‑related funds and reminded the committee that court collections and cash‑bond receipts are legally restricted. He said Synovus bank account records are being reconciled with the city’s internal (ENCODE) accounting, and that court corrections funds pay for items such as inmate food, some medical costs and certain salaries tied to court operations. Adams also said court judicial administration accounts can carry judicial salaries and furniture, and staff are working to ensure salaries and bonuses are charged to appropriate restricted accounts where permitted.
No formal votes were taken on the special‑fund descriptions; staff said the allocations and the $90,000 grant are incorporated into the draft budget and will be presented to the full council for final action at the scheduled meeting.
