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 — Rezoning, 10.65 acres at the southern end of Larkin Lane: Council approved rezoning the parcel to R‑50 and adopted an amendment to require two cul‑de‑sacs and to prohibit vehicular interconnectivity to the adjacent County Downs neighborhood. The council recorded the motion and amendment and the chair declared the vote unanimous.

- Item 7 — Rezoning, 75 acres on the south side of Selma Highway to M‑1 (industrial): The proposal, described by proponents as suitable for trailer parking and other trucking‑related staging, drew sustained opposition from residents of Hope Hall and nearby PJ (police jurisdiction) neighborhoods, who urged denial and raised concerns about environmental impacts, existing nearby wildlife preserves and a history of industrial blight along portions of Highway 80. At the council meeting a motion to deny the rezoning was made; the transcript records several roll‑call hand counts and procedural confusion during the tally. The chair later announced that the motion to deny failed and that, as a result, the rezoning will proceed. (Transcript shows disagreement about the intermediate tallies; see provenance.)

- Item 8 — Cooley Social Club (930 Grove Street): Neighbors complained of late‑night noise, alleged public drinking and loitering, and described repeated disturbances between midnight and 5 a.m. The city told the club’s representatives it would reconvene the matter in 30 days and asked the operator to pause operations while the council and staff complete follow‑up; the council said staff will review licensing and zoning and meet with economic development and code enforcement staff.

- Item 9 — Ordinance to change meeting times (Ordinance No. 51‑2025, sec. 2): Council suspended the rules and adopted the ordinance by unanimous vote.

- Item 10 — Resolution appointing Alice Novak as temporary museum director: Adopted unanimously after suspension of the rules.

- Item 11 — Application for a conference center at 3758 Norman Bridge Road (DBA Hidden Gem / Palmer Wright): Staff reported an earlier cease‑and‑desist and requested additional review. The council carried the application over for two weeks for further staff follow‑up and discussion with the applicant.

- Item 12 — Application for a tourism/taste‑tour business (Lanell Light): The council approved the application after procedural steps; staff directed the applicant to complete required business‑license steps with the licensing office.

- Item 13 — Restaurant and retail liquor application (Eastdale Mall): Applicant Daniel Boyd said the business intends to open Sept. 6; council approved the license after a motion that required private security between 9 p.m. and midnight and a follow‑up report to council in 60 days.

- Items 14–19 and related licensing/resolutions: Several other liquor, retail and manufacturer license applications and routine resolutions were considered; some were carried over for neighborhood meetings or two‑week follow‑up, and others were approved after suspension of the rules. The meeting record notes unanimous approvals where cited.

- Items 20–22 — Demolition and nuisance resolutions (including authorizations under Code section 11‑53(b)(1)): The council adopted resolutions assessing demolition and abatement costs and authorized the work noted on the agenda; staff said asbestos remediation had driven some of the costs to special landfills.

Public input and neighborhood concerns Residents from Hope Hall, Catoma and PJ expressed strong opposition to the Selma Highway rezoning, saying the area lacks city services and warning the rezoning would accelerate industrial encroachment. Speakers cited an online community poll (163 respondents, 161 opposed) and asked the council to locate truck staging in already‑industrial parts of the city. For the Cooley Social Club, long‑time neighbors described repeated late‑night disturbances and enlisted council and code staff to take action; the council instructed staff to meet with the operator and to return the matter to the council in 30 days.

What’s next The council set a public hearing on the proposed FY2026 budget for Sept. 2 and scheduled a budget work session for Sept. 9. Several licensing and zoning items were carried over for two‑week or 30‑day follow‑up as staff and applicants coordinate with neighborhood groups and enforcement units.

Speakers quoted in this report are identified in the meeting record; direct quotations are attributed to the speaker shown in the transcript.