Montgomery Mayor Steven L. Reed on Tuesday presented his proposed Fiscal Year 2026 General Fund Operating and Debt Service Budget to the Montgomery City Council, outlining a responsible and balanced plan that reflects the city’s growth, priorities and values. The proposed budget totals $353.2 million, representing a 6.5 percent increase from the previous year.
“Budgets are where our values show up in real numbers,” Reed said. “This proposed budget is balanced, responsible, and designed to sustain Montgomery’s growth while serving every neighborhood in our city.”
The FY 2026 proposal is anchored by three key principles: fiscal responsibility, strategic investment and inclusive economic growth. Montgomery’s financial outlook is buoyed by transformative corporate projects, including:
- Amazon: $100 million, 650,000-square-foot cross-dock facility, creating 500 jobs.
- Manna Capital Partners: $600 million, 1.7-million-square-foot beverage production complex, adding 280 jobs.
- Diageo North America: $415 million manufacturing and warehousing facility, employing 100 full-time staff.
- Montgomery Inland Port Facility: $94 million intermodal transfer hub, supporting more than $33 billion in surrounding private investment.
“These developments are not isolated—they are synergistic,” Reed said. “Together, they signal a new era of industrial vitality and community opportunity for Montgomery.”
Key Investments in FY 2026
The budget directs resources toward essential city services and long-term stability, including:
- Replacing the Montgomery Police Department’s outdated communication system.
- Repairing city buildings, roofs, elevators, and installing new cameras citywide.
- Purchasing new sanitation and landfill equipment to replace aging vehicles.
- Expanding wayfinding signage across the city.
- Funding merit increases for every city employee to ensure competitive pay and improve retention.
The budget also grows the city’s reserve fund balance to maintain fiscal strength and protect against emergencies.
Workforce Investment
Reed emphasized that every city employee will receive a merit increase in FY 2026, including those at the top of their pay grade. The administration approved additional pay steps to encourage retention and strengthen institutional knowledge.
“This is a win-win for Montgomery,” Reed said. “Employees benefit financially, and the city benefits from continuity and expertise.”
Fiscal Stability
The city continues to operate without short-term debt and has reduced overall long-term debt to $25.5 million. Growth in business license revenue and stable sales, property, and sanitation tax revenues will sustain the proposed increases without raising tax rates.
Closing Commitment
Reed expressed gratitude to the Finance Department, Cabinet Members and city staff for their diligence in preparing a zero-based, balanced budget.
“This administration will continue to move forward to build a better Montgomery for all residents, where everyone can live, learn, and earn,” Reed said.
The City Council will now review the proposed FY 2026 budget for consideration and approval.
