Mayor Steven Reed on Tuesday previewed the City of Montgomery's fiscal priorities and flagged items he will present with the full FY2026 budget on Aug. 19. Reed cited mixed July revenue results, investments in parks and recreation and planned spending on traffic-enforcement technology.

In an overview of city revenues, Reed said sales and use tax collections had rebounded strongly from March through June but that July showed “a dip down about 1.5% compared to July” and noted a major franchise had not remitted July sales tax by the deadline. He said, “despite the dip, we're seeing about a 2% year over year growth, and we remain optimistic with strong collections in coming months, we can close the fiscal year with 3% growth overall.”

Reed told the council that lodging tax returned to strong growth in July — up more than 11% year over year — and that gasoline-tax receipts jumped nearly 39% year over year in July, a spike he attributed largely to a 3-cent special fuel tax that took effect in May. Alcoholic beverage tax receipts, he said, fell nearly 34% (about $90,000) compared with the same month last year; Reed listed possible causes including late filings and events held at venues that do not remit alcohol taxes.

Why it matters: Reed’s revenue overview frames the administration’s assumptions for next fiscal year. The mayor formally told council members he will present the full FY2026 budget at the council’s Aug. 19 meeting.

The mayor highlighted parks and youth programming as part of the city’s community investments. He said the Parks and Recreation Department’s summer programs served more than 300 children in civic engagement workshops, led by a Bloomberg Harvard City Fellows participant who “brought her expertise in civic innovation.” Reed also credited the Montgomery Ford initiative for facility investments, listing as examples Fire Station No. 10 and the Lagoon Park Softball Complex. Reed said Lagoon Park recently hosted a national youth baseball tournament that brought “over 12,000 visitors and generated an estimated $4,100,000 in economic impact, in just 1 week.” He said Lagoon Park improvements are included in next year’s budget.

On public safety, Reed said the Montgomery Police Department had issued more than 50,000 traffic citations year to date with 7,800 moving violations and 43,000 red-light-camera citations, and that the city plans to invest “millions of dollars” in speed cameras and license-plate readers (LPRs) in the coming budget. Reed said the city has recorded about 200 fewer crashes compared with this time last year and framed the technology investments as a “force multiplier” for the department.

Reed also praised the mayor’s internship program and said the Courtney Harmon Pruitt Community Center is expected to open later this year after corrective work; he gave a brief events calendar including the FCS Kickoff Classic and the Red Tails Classic at Crampton Bowl. Reed encouraged attendance and described other upcoming events such as the Buckmasters Expo and a Riverbend Brewfest.

What’s next: Reed will formally present the FY2026 budget and budget message to the council on Aug. 19. Council members did not take action during the mayor’s message; the revenue figures and program updates will feed into the formal budget packet to be posted with the Aug. 19 agenda.