Opelika commission approves first readings of FY2025-26 millage and budget; officials cite camera revenue shortfall

The Opelika City Commission voted 5-0 Tuesday to approve first readings of the city’s fiscal year 2025–26 millage ordinance and the general proprietary and special funds budget.

City budget administrator Bob Rayer told the commission the city’s recommended millage rate is 8.9797 mills, down from this year’s 9.163 mills, but that a larger tax base means the city expects higher overall property-tax revenue next year. “The rollback rate is 8.14 mils,” Rayer said, and he described the recommended rate as a roughly 2% reduction from the current rate.

The reduced rate, however, does not eliminate increased tax bills for every property. Rayer said the city’s taxable base rose about 12.3%, so non-homesteaded properties “all things being equal” could see up to a 10% increase in their city portion of the tax bill, while homesteaded properties should see about a 1% increase on the city portion.

Why it matters: the commission must show how any revenue above a rollback rate will be used. Rayer outlined three uses for about $1.5 million of additional city revenue the presentation attributed to the higher tax base: roughly $500,000 to replace fund-balance support for the capital improvement program (CIP), $600,000 to cover a shortfall tied to problems with the red-light camera program, and $400,000 to fund four additional general-fund positions and contribute to pay increases.

Rayer also told the commission that of next year’s gross property-tax revenue about $22,073,000 will be a TIF contribution under the city’s community redevelopment agency (CRA) structure, and he said the county will match that on a “2 to 1 basis,” providing an example in his presentation.

Commissioners asked about how those numbers translate to individual tax bills and whether city staff could provide one-on-one explanations for residents who brought tax statements to the meeting. Vice Mayor Kelly urged staff to explain the difference between city and other taxing authorities on a resident’s combined tax bill and to provide translators if needed.

The commission also discussed automated enforcement cameras and how revenue is shared. The police chief (unnamed in the record) said the vendor receives the first two violations each day and the city receives a share after that; the chief estimated the city’s average share at about $60 per citation for the school-speed-zone cameras. The commission requested that the manager include a brief presentation at the next commission meeting explaining how the school-speed cameras will operate and how revenue and warnings will be handled during the educational phase.

On debt and reserves, Rayer said a 2011 bond has one final payment of about $600,000 due in January and that a 2015 bond was paid off last June, substantially improving the general fund’s debt position. He said the city has moved from using fund balance for operating expenses toward using current-year revenue to support capital projects because prior fund-balance draws have reduced reserves.

Both ordinances were read into the record as public-hearing items and passed on first reading with 5-0 votes: the millage ordinance (moved by Commissioner Bass, seconded by Commissioner Irvin) and the budget ordinance (moved by Commissioner Irvin, seconded by Commissioner Santiago). The commission adjourned after the votes.