Hoover council Finance Committee to discuss projected budget deficits Thursday
The Hoover City Council’s Finance Committee has scheduled a meeting for Thursday to discuss the years of deficit budgets projected for the city by a finance consultant.
On April 2, consultants with the Porter, White & Co. investment banking and investment management firm made a public presentation to the City Council that indicated the city is headed for years of deficit budgets and no money for capital projects unless something is done to boost revenues or cut expenses.
The city’s revenues are being negatively impacted by an increase in online shopping, and expenses are growing due to additional employees hired by the previous administration, costs associated with the Hoover Metropolitan Complex expansion and an increase in the city’s contribution to the school system, Mayor Frank Brocato said.
Brocato on April 16 asked the council to partner with him and the community at large to find solutions to the financial predicament. He asked the council’s Finance Committee to meet to discuss the matter, and Councilman John Lyda, chairman of the committee, agreed to call the meeting.
Lyda this evening said he plans to spend some time looking at where the city stands with revenues and expenses halfway through fiscal 2018. Revenues have come in higher than budgeted, and expenses have come in lower than budgeted, which is welcome news, Lyda said.
Lyda said the mayor did a fine job of outlining steps that have been made to trim the city’s budget, but he wants to take a closer look at some of the increased expenses the city has incurred since a new mayor and council were elected in 2016. The city gained five new elected officials in 2016, and they came loaded with ideas, Lyda said.
“We’ve spent a lot of money,” Lyda said. “A lot of campaign promises can come with big price tags, and I think that’s what happened.”
Lyda said he’s not saying the ideas brought in by new elected officials are not good projects, but the money adds up quickly.
Lyda said he doesn’t have any specific plans to talk about ways to increase revenues, such as new taxes or fees. Everything is on the table, but he doesn’t think the majority of the council wants to change the city’s mentality to a “tax-and-spend” mindset, he said. Most of them want to find ways to meet financial challenges within the current revenue model, he said.
Thursday's Finance Committee meeting is scheduled to take place immediately after the regular 5 p.m. City Council work session in the William J. Billingsley Council Chambers at the Hoover Municipal Center at 100 Municipal Lane. Both the 5 p.m. work session and committee meeting afterward are open to the public.
Read more about the Porter, White & Co. report on the city's financial challenges here.
Read more about Brocato's comments concerning steps the city has made to cut costs here.
This article was updated with comments from Councilman John Lyda at 5:26 p.m.