Montgomery reports mixed revenue trends, hires deputy chief financial officer
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Summary
City staff reported a modest decline in sales tax collections, strong lodging tax and alcohol receipts, a gasoline tax increase earmarked for infrastructure, and announced the hiring of Deputy Chief Financial Officer Natasha Jackson.
Montgomery city officials reported mixed revenue trends for fiscal 2025 and announced the appointment of a new deputy chief financial officer. The city is in its 13th accounting period, which will close the general ledger for fiscal year 2025; external auditors have begun the audit so an annual comprehensive financial report can be submitted to the Government Finance Officers Association by March 31, 2026.
The city official said revenue from sales and use taxes fell 1.35% in September compared with the same month in fiscal 2024, reflecting a several-month pattern of softer collections. The official attributed part of the decline to a statewide 1% reduction in sales and use tax on certain grocery items eligible under SNAP administered through the Alabama Department of Revenue and to a post-pandemic return to more-normal growth patterns. "After the pandemic, stimulus, heightened spending, and sales tax growth were unusually high," the official said.
Lodging tax receipts were strong in September, up about 10% compared with the same month in the prior fiscal year, with year-to-date lodging tax growth of slightly more than 5%. Alcoholic beverage tax monthly receipts were volatile during FY2025; September collections were up about 46% year over year, and year-to-date collections rose more than 5%.
The official said gasoline tax revenue rose markedly during the last quarter of fiscal 2025, driven in part by a 3-cent gasoline tax increase adopted by the city council. That 3-cent increase is earmarked for road paving and bridge repairs; the official described an average increase in gasoline-tax revenue "over the last quarter" of more than 39% and year-over-year growth of more than 12% for that revenue stream.
City officials also introduced Natasha Jackson as the new deputy chief financial officer. The official described Jackson as a certified public accountant with more than 20 years of experience in state government, higher education and nonprofit finance; Jackson holds accounting degrees from Hawaii Pacific University and an MBA from Auburn University at Montgomery.
No council votes on tax policy or staffing were recorded during the remarks. The financial report was presented as an update; the audit and final financial statements are pending the external audit process and the city's submission to the Government Finance Officers Association.
