Mayor Steven Reed on Tuesday presented the City of Montgomery’s proposed Fiscal Year 2027 General Fund Operating and Debt Service Budget, a balanced $370,411,346 spending plan focused on “public safety, essential services, affordability, infrastructure and continued economic growth,” according to a city press release.
The proposed budget builds on several years of disciplined financial management and continued growth while directing additional resources toward services residents rely on every day.
“Montgomery continues to move forward because we have remained focused on responsible financial stewardship while investing in the priorities that strengthen our neighborhoods and improve quality of life,” Reed said. “This budget allows us to build on that progress while maintaining a strong financial foundation for the future.”
Investing in public safety and essential services
Approximately 66 percent of departmental spending in the proposed FY 2027 budget supports public safety and other key operations, including police, fire, parks and recreation, sanitation and street maintenance.
The Montgomery Police Department’s proposed budget increases by approximately $2.9 million, from $62.2 million to $65.2 million, while the Montgomery Fire/Rescue Department’s proposed budget increases by approximately $3.6 million, from $58 million to $61.5 million.
The investments come as Montgomery continues to see measurable improvements in public safety, including year-to-date declines of approximately 19 percent in homicides, 15 percent in violent crime and 25 percent in nonviolent crime.
Strong revenue and continued growth
Sales and use taxes remain Montgomery’s largest General Fund revenue source, accounting for nearly half of revenues. Sales tax collections are projected to increase approximately 9 percent, primarily because of online sales. Lodging and rental tax revenues are projected to grow between 3 percent and 4 percent, a conservative projection based on historical trends.
Together, the city’s major revenue sources account for nearly 90 percent of General Fund revenues and provide what the administration describes as “a strong and balanced foundation for FY 2027.” The proposed budget includes no new revenue sources.
The budget proposal also comes amid continued private-sector investment in Montgomery and the River Region, including projects involving Amazon, Manna Capital Partners, Diageo, the Inland Port and Meta.
Supporting neighborhoods and community partners
The FY 2027 proposal continues investments in housing initiatives, neighborhood access and equity programs, community center revitalization, sidewalks, street improvements, wayfinding and mobility improvements.
The budget also allocates $10,518,623 to nonprofit organizations, government partners and local service providers supporting seniors, youth, families, emergency services, violence prevention, arts and culture and indigent health care.
City employees would continue to receive merit increases under the proposal, while the city would continue efforts to strengthen reserves and maintain its strong credit standing.
“Ultimately, a budget is about priorities,” Reed said. “Our priorities remain clear: a safer city, stronger neighborhoods, greater opportunity and a government that responsibly manages the resources entrusted to us.”
The mayor’s FY 2027 budget message, as written and presented to the Montgomery City Council, can be seen here.
