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Mayor reports strong cash position but warns of funding gap to finish sewer upgrades
Summary
In a semiannual financial report, the mayor said Columbiana's FY2025 budget anticipates $15.7M in revenue and $13.2M in expenses, general fund cash stood about $2.9M as of March 31, the city closed a $2.8M SRF loan for sewer upgrades in Dec. 2024, and an additional $9.5M will be needed to complete the project.
The mayor presented the semiannual financial condition report at the April 15 council meeting, telling members the city is in a sound liquidity position but that more funding is needed to complete wastewater-plant upgrades.
The city budget for fiscal year 2025 assumes $15.7 million in revenue and $13.2 million in expenses, a budgeted surplus of about $2.47 million. As of March 31, the mayor reported a general fund balance of $2.9 million and a combined fund balance of about $4.1 million across restricted and unrestricted funds; timing of revenues and expenses, particularly for sewer upgrades, explains some variances from the budget.
In December 2024, the city closed on a $2.8 million State Revolving Fund (SRF) sewer revenue warrant to fund part of the sewer-plant upgrades. The mayor said the project still requires roughly $9.5 million in additional funding; officials are pursuing supplemental SRF financing, commercial proposals (which so far were not as competitive), and requests for congressionally directed spending.
Debt-service costs increased in 2025 to about $945,000 and recurring-tax debt service was about 15.2% of recurring taxes and fees as of March 31. The mayor said these levels are near the upper end of typical guidelines and emphasized the need for additional revenue if the city borrows further to complete the project.
Council did not take further votes on funding at the meeting; the mayor noted staff will continue pursuing financing options and warned that choices to borrow more would reduce funds available for public services.
