Mayor Steven L. Reed said Montgomery’s proposed budget is the largest in the city’s history and described the city as being in its strongest financial condition in decades. “The budget is the largest in the city's history,” Reed said, and added the city holds a “double A, bond rating from Fitch.”

Reed said the city maintains a reserve target of about 20 percent. “Having that at 20% is where, really it needs to be,” he said, describing those reserves as a “savings account” the city can use for long-term investments. Reed also said the administration plans a 5% merit increase for city employees this year. “We’re doing that with a 5% merit increase this year,” he said.

Reed said the budget will fund technology upgrades for the Montgomery Police Department and continued street maintenance, and that city leaders will seek additional state and federal funds for larger projects. “Whether it’s making sure from a software perspective, the ease of government is more efficient and effective, or…paving the streets that need to be paved,” Reed said. He framed those expenditures as investments that are intended to yield longer-term returns for residents.

Reed presented credit ratings and reserve levels as part of the city’s ability to borrow and invest. “We got a double a, bond rating from Fitch. We go to Wall Street…that’s 800 credit y’all,” he said. He described the rating and reserves as tools that allow Montgomery to pursue infrastructure, public safety and community programs when opportunities arise.

Reed emphasized fiscal stewardship and transparency, saying not all investments will occur immediately but that the city must invest now to realize benefits later. “Not all of this will happen tomorrow,” he said. “These are the investments you have to make…to get the return down the road.”

No formal ordinance, vote or specific appropriation was described on the podcast. The mayor spoke in general terms about the budget’s size, credit standing, reserve target and personnel pay plan; he did not provide a line-item breakdown or cite the departmental or legal actions approving the merit increase during the interview.