Montgomery council adopts largest city budget after multihour debate, 6-3

The Montgomery City Council adopted the city's fiscal year 2026 operating and debt-service budget on Sept. 9 after a protracted discussion over amendments, equipment funding and year-end accounting, voting 6-3 to approve the package as amended. Councilmember Jim Wright moved to adopt the FY2026 operating budget; the motion carried.

The budget debate began when some council members asked to split the agenda item so the ordinance to amend fiscal 2025 could be carried over separately while the council voted on the FY2026 adoption. Councilmembers voted to carry over the proposed amendments to FY2025 and proceed with the FY2026 adoption.

Why it matters: Council approval sets the city's spending priorities for public safety, infrastructure and workforce development for the coming fiscal year and authorizes department-level spending tied to the adopted debt-service plan.

Council discussion focused on how the city handles year-end ‘‘fallout'''unspent budget authority that becomes available when positions are vacant or revenues exceed estimates'''and where those dollars should be applied. Mayor (name not specified in record) told the council, “If we did not use fallout in the current year, departments have been approved for about $13,000,000 in equipment.” The mayor said the city has used fallout to avoid frequent short-term borrowing for rolling stock and other capital needs.

Several council members also pressed for more detail about what specific line items would be changed if the FY2025 ordinance amendment were carried forward. Councilmember (last name Pruitt) proposed an amendment to shift $2,500,000 from police salaries and direct $2,500,000 to fire salaries for FY2026; the amendment failed on a 4-5 vote after debate about accounting mechanics and whether the council should set raises by ad hoc line-item changes rather than through the budget office and subject-matter committee review.

During the session the council considered multiple smaller amendments to funding lines. Council members negotiated changes that they said would leave the budget balanced; the package of adopted amendments totaled approximately $78,007.97 in net increases across several line items as presented to the council prior to the final vote.

Key figures and process notes: The mayor described the budget as the largest proposed in the city's history. The FY2025 adopted budget figure referenced in council discussion was $331,600,000; the mayor and finance staff explained that year-end balancing and fallout are routine parts of municipal accounting. The council discussed capital project needs that staff presented earlier with an estimated total of about $140,000,000 for projects that include stormwater, stadium upgrades, and airport items.

Formal actions and outcomes recorded: The council split the question so the ordinance to amend FY2025 will be carried over for further work and detail; the motion to carry that portion passed. Councilmember Jim Wright moved to adopt the FY2026 operating budget; the motion to adopt the FY2026 budget as amended passed 6-3. A separate motion by Councilmember Pruitt to reallocate $2.5 million from police salaries to fire salaries was defeated 4-5. Several smaller line-item amendments were voted on and incorporated into the final adopted budget.

Discussion vs. decision: Council members repeatedly requested more detailed, line-by-line information from finance staff about which exact accounts would be adjusted if the FY2025 amendment were carried forward. Council discussion included policy-level questions (how to treat fallout and reserves, whether to set raises by committee), operational direction (staff will prepare the detailed amendments and accounting entries), and formal decisions (carrying over the FY2025 amendment question; adopting the FY2026 budget 6-3).

What's next: Council carried over detailed amendments to FY2025 to allow staff time to provide the specific line-item numbers and balancing entries; finance staff and the mayor's office will return with the revised amendment package for council action. The adopted FY2026 budget will take effect according to the city's normal fiscal calendar and the city will track follow-up items, including requested departmental breakdowns and any future amendments needed to reconcile year-end figures.

Speakers quoted in this article spoke during the council's budget debate and are recorded in the meeting transcript.