Mobile Council hears finance report as city shifts to annual budgeting; officials promise more departmental detail

City finance staff presented the monthly financial statements for the period ending Dec. 31 and said the city moved to an annual budgeting presentation for fiscal-year 2026.

The presenter reported December net income of $10,400,000, a total fund balance of $152,000,000, a reserve fund of $64,400,000 and an operating balance for the general fund of $87,600,000. Sales tax receipts for the month were listed at $22,200,000 with year-to-date sales-tax actuals of $57,600,000 against a YTD budget of $213,300,000. Business-license monthly actuals were reported at $768,604 with year-to-date business-license receipts of $1,539,399 against a $55,500,000 annual budget for that line.

Finance staff explained the reporting change was driven in part by software limitations with the city’s Tyler Munis system and by a decision to adopt annual budgeting for FY 2026 rather than a monthly-budget-column approach. The presenter said departments will continue to be monitored and that prior-year monthly actuals will be included to give context for expected seasonal changes.

Councilmembers questioned whether the annual presentation reduces line-of-sight into monthly spending, and raised examples (police equipment purchases and seasonal permit revenue) where expense and revenue timing can skew month-to-month percentages. Finance staff said departments will be asked to provide expected timing for large expenses and that the city plans quarterly meetings with departments during the budget process to identify foreseeable month-to-month variances.

Councilmembers requested continuing monthly finance reports and additional detail on embedded departmental spikes so the council can identify and react to emergent issues.

No vote was required; the report was received and councilmembers thanked staff for the presentation.