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Birmingham releases balanced FY26–27 budget with $44 million in capital work
Summary
City leaders presented a recommended FY26–27 budget that officials say is balanced and emphasizes $44 million in capital improvements — including $19.3 million for streets, water and sewer — while preserving reserves and expanding transparency tools like an interactive OpenGov budget book.
Birmingham’s elected officials and staff opened a weekend budget hearing on April 25 with a presentation of a recommended FY26–27 budget that city leaders say is balanced and focused on infrastructure.
“So we bring a balanced budget,” the city manager said as he framed the plan amid national economic uncertainty, higher material and energy costs, and rising interest rates. Finance staff later told the commission the recommended three‑year spending plan totals about $146.6 million, with roughly $44 million proposed for capital improvements in the coming year.
Finance director Mary Chavez walked commissioners through the highlights, saying about $19.3 million of the capital package would be devoted to street, water and sewer projects and the remainder to parking systems, parks, building improvements and equipment. She also said the administration had built conservative inflation assumptions into revenue and expense forecasts and is publishing an interactive budget and transparency portal so residents and commissioners can drill into departmental numbers.
Commissioners pressed staff on how the city will fund aggressive infrastructure spending without exhausting reserves. Several asked how much of the general fund would be drawn down to support streets and whether one‑time parking projects would inflate future operating needs. Chavez said the budget includes transfers from the general fund to major and local street funds and that the city will continue to monitor reserves against the adopted policy.
Staff emphasized several other priorities tied to the recommended book: maintaining enterprise funds so utilities are self‑funding, funding a multiyear parking rehabilitation plan, and modest staffing changes in engineering and finance to improve delivery of capital work. The commission scheduled follow‑up items and technical clarifications for upcoming sessions; the budget is expected to return for formal vote in May.
