Montgomery mayor unveils $353.2 million FY2026 budget; council approves neighborhood rezoning and several licenses amid protests

The mayor of Montgomery on Tuesday presented a $353,242,591 proposed fiscal year 2026 general fund operating and debt service budget that the administration described as balanced and built on growth in sales and use taxes, business license fees and ad valorem (property) taxes. The City Council set a public hearing for the budget during its Sept. 2 meeting and scheduled a budget work session for Sept. 9.

The proposal includes merit increases for every city employee, an approximately $25.5 million long‑term debt load, an interfund transfer of about $6.8 million (less than 2% of the total budget) and a target to keep general‑fund reserves near 20%. The mayor said sales and use taxes make up roughly 46–47% of the proposed budget and that the administration forecasts modest, roughly 2% year‑over‑year growth for that stream in the current fiscal year. “This proposed budget is both balanced, and is one that we think is very fair, and in line with the growth of the city,” the mayor said during the presentation.

Why it matters: the package would fund increases in employee pay, police communications upgrades, rolling stock for public works and capital repairs, while leaving outside‑agency allotments unchanged because the administration projects sales tax revenue to be flat. The council’s scheduling of a public hearing and a follow‑up work session begins the formal review process required before final adoption.

Council votes and land‑use actions at a glance - Item 6 —…