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Mayor reports mixed revenue trends, schedules FY2026 budget message for Aug. 19
Summary
In a mayor's message to the Montgomery City Council, the mayor said sales and use taxes have rebounded year-to-date but dipped in July, lodging and gasoline taxes rose, alcoholic beverage tax receipts fell, and he will present the FY2026 budget on Aug. 19.
Mayor delivered a financial briefing to the Montgomery City Council saying the city has seen mixed revenue trends and announced he will present the FY2026 budget at the council's Aug. 19 meeting.
The mayor said "Sales and use tax, has made up a, strong rebound from March through June. But in July, we saw a dip down about 1.5% compared to July." He reported overall year-over-year growth of about 2% and said, "We can close the fiscal year with 3% growth overall." The mayor noted one large franchise had not remitted July sales tax by the deadline, and said final figures depend on late filings.
The mayor gave specific line-item changes. He said lodging tax was up more than 11% in July compared with the same month last year, an increase he quantified as "more than a 162,000 in increased revenue," and that lodging is tracking about 5% growth year over year. He described gasoline tax as having a "big month in July, up nearly 39% year over year," and attributed the jump largely to a 3-cent special fuel tax that took effect in May. On alcoholic beverage tax, he said the city saw "a drop of nearly 34% or decline of about $90,000 compared to the same month, last year," and suggested late payments and more events held in venues that do not remit alcohol taxes were possible factors.
Why it matters: the reported revenue swings will shape the mayor's FY2026 budget message and any proposed spending or cuts. The mayor explicitly tied the financial overview to the forthcoming budget: "I'll be presenting the f y 20 26 budget message and full budget document to the city council at our next meeting, on August 19."
The mayor closed the financial portion by saying the administration remains optimistic about collections in the coming months and expects to finalize the fiscal-year results when all remittances are received.
Ending: The mayor provided no formal motion or council action on the revenue report at this meeting; he framed the numbers as a preview ahead of the full FY2026 budget presentation on Aug. 19.
