City budget approved for 2026-2027 fiscal year

By Grace Lovins

Birmingham City Commissioners on Monday, May 18, approved a $58.2 million budget and 12.9731 millage rate for the upcoming fiscal year which will begin on July 1 and end on June 30, 2027.

Finance director Mary Chavez presented the budget to the commission, noting that it was the same as what they viewed during the April 25 public hearing since there were no revisions or last minute changes to the proposal.

As written in the resolution included in the meeting packet, a rate of 10.5005 mills was set for general purposes, 1.2665 mills for library operations, .6625 mills for garbage removal, .3211mills for senior services and .2225 mills for debt service requirements, for a total millage rate of 12.9731 mills.

Based on the millage rates, roughly $40.8 million will be raised through the millage for general purposes, $4.9 million for library operations, $2.5 million for garbage removal, $1.2 million for senior services, and $867,630 for debt service requirements.

The budget resolution also shows $9.1 million in the local streets fund, $6.3 million in the major streets fund, $18.5 million in the sewage disposal system fund, and $11.4 in the water supply system receiving fund.

At an earlier April budget hearing, commissioners presented a $146.6 million budget for the 2026-2027 fiscal year, a 3.1 percent increase from the 2025-2026 fiscal year budget.

As part of the city’s annual budgeting process, city staff and commissioners review the city’s five-year operating forecast, which shows an anticipated steady growth from the 2025-2026 fiscal year budget to the 2029-2030 fiscal year budget.

With minimal discussion on May 18, commissioners unanimously approved and adopted the budget resolution in a 6-0 vote. Chavez indicated that the water and sewer rates for the upcoming fiscal year will be presented separately at the Monday, June 8, meeting.