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Finance committee warns of audit progress, adds positions in budget and restores transit payment to last year’s rate
Summary
Homewood finance staff told the committee it closed multiple pending audits and is adding positions in the 2025–26 budget; the committee directed staff to set payment to the Jefferson County Transit Authority at the city’s prior budgeted rate after months of changing contract figures.
Homewood finance officials on Sept. 22 briefed the finance committee on department staffing, recent audit closeouts and next year’s budget outlook, and the committee voted to restore transit funding to last year’s per‑unit rate after months of contested contract numbers with the Jefferson County Transit Authority (BJCTA).
Finance staff said the department entered the year with only three positions and multiple outstanding audits and that, during the past year, the team closed two single audits, addressed state examiners’ work and reduced risk by moving to new payroll and financial‑institution platforms. The budget proposal for 2025–26 adds a chief accountant, procurement officer and budget analyst, and trims one accounting assistant, staff said. Professional‑services funding in next year’s budget includes an allocation for external accounting support and to cover potential audit costs.
The committee heard a lengthy discussion about a BJCTA contract that had been presented to the city at varying rates during the annual budgeting process. Committee members said BJCTA had proposed a higher per‑unit rate to support expanded services and microtransit; staff explained that the city’s adopted budget had been based on earlier figures and that contracts sometimes arrive to municipalities late in the fiscal cycle. Committee members pressed staff for the city’s legal obligation and options in negotiations and asked for invoices and contract histories to confirm the city’s payment record.
After debate the finance committee adopted a motion directing staff to tell BJCTA the city will budget the same per‑unit contribution as in the prior year (the budgeted rate used in last year’s adopted budget), and to authorize the city manager to negotiate and communicate that direction. Committee members voted to set the city’s transit contribution at the prior budgeted rate; the motion passed 4‑0.
Staff also presented a personnel and organizational slide showing automation gains tied to the payroll and AP projects and asked for budget flexibility for professional services and training. Committee members praised staff for the audit closeouts and for process improvements in accounts payable and payroll.
Finance committee votes and budget directions taken on Sept. 22 will be forwarded to the full council as part of the city’s 2025–26 budget hearings. The committee also approved multiple smaller contract and procurement items during its session (see “Votes at a glance” for a complete list of items approved on Sept. 22).
