Homewood manager outlines $127.5 million FY2025–26 budget; committee sends briefing to full council

City Manager Mike Adams presented an overview of the proposed FY2025–26 budget to the finance committee, describing a $127,485,000 total budget that combines operating, capital and debt service items and outlines funding, consolidation and debt‑management strategies.

Adams told the committee the proposed operating budget is $74,875,000, capital expenditures are programmed at about $21,000,000 and the presentation assumes a conservative revenue increase and cost‑of‑living adjustments tied to an assumed CPI. The manager said personnel merit increases and several recommended personnel additions are included in the draft and that utilities, fuels, maintenance and IT budgets will be consolidated into single, central line items to improve visibility and management.

The manager described debt‑service planning tied to the city’s 1¢ sales tax and to previously authorized bonds; he proposed a capital improvement program and a targeted rainy‑day balance (approximately 25% goal) to improve bond ratings and long‑term fiscal flexibility. Adams also briefed the committee on bank transitions, noting a planned move of funds to Synovus and existing interest yields on invested balances.

Committee members asked for CPI source confirmation and line‑item clarifications (including an item involving BJCTA and micro‑transit), and staff said more detailed budget books and updated figures will be provided for the formal budget hearings. After discussion, the committee accepted the report and voted 5–0 to forward the budget to the full council and proceed with hearings.