Finance director: $7 million in combined balances but utilities in rebuilding phase

The Alexander City finance director presented a financial status report to the City Council on Jan. 27, saying the city showed roughly $7 million in combined bank balances but that those totals mask internal shifts and upcoming obligations.

"On the banking balances, [it looks like] 7,000,000 above December 23," the finance director said, while noting that the growth includes a $3,400,000 increase in the Campbell Fund and a $2,300,000 decrease in utilities balances. "This is a reminder that our utilities are in a rebuilding phase," the director said.

The report noted that grant-funded airport work will be reimbursed in part, and that the city achieved strong invoice-payment metrics in December. The director summarized monthly payment activity: the city issues about 340 checks and processes roughly 1,000 invoices per month, totaling about $3.3 million on average.

The finance director also flagged reserve targets. The presentation cited a desired reserve level equivalent to 90 to 180 days of operating expenses, which the director quantified as roughly $9.9 million to $19 million across reserve accounts.

Councilors thanked the finance and revenue departments for their work and emphasized caution on spending. Council members discussed the need to avoid placing additional burdens on residents while ensuring sewer and other infrastructure projects are funded.

Why it matters: The split between general fund gains and utility fund declines signals constrained capacity for water and sewer projects even when the headline balance looks positive. Pending reimbursements from grants may affect near-term cash flow.

What's next: Council discussion of utility funding and potential staged rate adjustments was referenced during member comments; no formal budget changes were adopted at the meeting.