Opelika CRA amends FY2025–26 budget after carryover reconciliation; board cuts $909,265 in line items

The Opelika Community Redevelopment Agency on Feb. 10 voted unanimously to amend and adopt its FY2025–26 general operating and tax increment fund budget after staff reconciled a discrepancy in the reported carryover.

Interim Executive Director told the board that when the budget was submitted to city staff for review, the city budget office flagged a possible discrepancy in the carryover amount. The CRA’s finance director, Naima Gantt, reviewed the numbers and reported a corrected carryover of $652,750. The director said earlier, less-precise estimates had ranged more widely during initial calculations.

To close the budget gap, staff proposed and the board approved cuts totaling $909,265. In the meeting the director identified the major cuts as elimination of a $600,000 development assistance line item, removing a $150,000 police agreement allocation, and eliminating a $250,000 parks assistance allocation; staff said those reductions allowed the CRA to balance the amended budget presented to the board.

Board members pressed staff on whether deposits on two properties placed earlier in the fiscal period would be lost because of the revised carryover. The director said those deposits are preserved and that staff retained a building-acquisition line sufficient to complete the planned purchases.

Members also raised concerns about oversight and the CRA’s reliance on city accounting. Several board members urged an additional set of reviews or briefings to reduce the chance of future large discrepancies and recommended staff bring back procedural suggestions. The director confirmed the CRA’s finances are held within the city’s accounting system and that CRA funds are segregated in a city-managed CRA bank account.

Staff provided additional budget context in the meeting: city TIF revenue of $1,775,082, county TIF revenue of $1,064,152 and an estimated $130,000 in interest earnings, yielding a combined available budget of $3,691,284 (including the $652,750 carryover). The director told the board that roughly half of those funds will be committed to property purchases and cited March 3 as a closing date for two parcels the CRA is acquiring.

The board voted by roll call — Board member Kelly, Board member Santiago, Board member Bass and Board Chair Russell recorded "Yes" — and the chair declared the amended budget approved. Several members asked staff to schedule a briefing with an external CRA budget expert and to return with recommendations for additional review steps.