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Hoover mayor presents $154 million budget for fiscal 2023

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Photo by Jon Anderson

Photo by Jon Anderson

Photo by Jon Anderson

Photo by Jon Anderson

Photo by Jon Anderson

Hoover Mayor Frank Brocato on Tuesday night proposed the city spend about $154 million from its primary accounts in fiscal 2023.

That represents a 2.6% increase from the original 2022 budget and a 19% increase from actual expenses in fiscal 2021.

The proposed budget includes $14.8 million for new capital projects, including $3 million for road paving projects, $2 million for sewer system upgrades, $1.5 million to design the proposed new Interstate 459 interchange near South Shades Crest Road and $1 million more for the widening of South Shades Crest Road.

Mayor Frank Brocato also announced that the city plans to begin a project to put artificial turf on some additional ballfields owned by the city and the Hoover school system. The city’s Investment Committee has identified $9 million for the first phase of this project, the mayor said.

“I may be more excited about this than anything,” Brocato said. “Many Hoover children and families will benefit from this upgrade for a very long time to come, and it will also enhance our position as a premier sports tourism destination in Alabama.”

City Administrator Allan Rice said the city is considering paying for some of the school system’s athletic fields to get artificial turf because the city uses some of those fields more than the school system. He specifically referenced the varsity baseball fields at Hoover and Spain Park high schools.

Brocato said he expects to have a recommendation regarding the artificial turf project to the City Council at its Sept. 19 meeting.

SALARIES AND BENEFITS

The mayor’s proposed 2023 budget also includes $9.7 million more for salaries and benefits, which would be an 11% increase from the fiscal 2022 amended budget. The total for salaries, overtime and health and dental insurance would increase from $90.9 million to $100.6 million.

While some cities are considering cost-of-living increases for employees as high as 7% or 9%, Brocato decided to propose something different. His budget proposal includes an immediate 5% step raise for most city employees on Oct. 1 but also would allow them to get their regular step raise on their employment anniversary date as usual, Rice said. Employees already on their 12th step would be bumped to the final 13th step Oct. 1 and receive a one-time 5% bonus payment on their anniversary date, Rice said. Employees who already have achieved the highest level of pay allowed (at step 13) would receive a one-time 5% bonus on Oct. 1.

The thinking is that the city can’t afford to give a hefty cost-of-living increase that would permanently raise salary levels for future employees, but the city could still give current city employees a financial boost as they struggle to deal with rising inflation, Rice said.

Councilman Casey Middlebrooks said he would prefer the city stick with the plan announced last year to keep Hoover employees’ salaries competitive with cost-of-living adjustments each year. He would prefer the city implement a cost-of-living adjustment of 3% to 3.5%, he said.

Brocato also is proposing the city give a discount on health insurance premiums for employees who voluntarily participate in a wellness program, with the city picking up 85% of insurance costs instead of 80%. The wellness discount would cost the city about $900,000 but should pay dividends down the road with lower health care costs if employees stay healthier, Rice said.

Brocato’s 2023 budget proposal also includes money to hire 17 additional city employees, including 13 custodians. City officials believe they can get better custodial service by hiring more day-to-day custodial staff in-house rather than contracting the service out, Brocato said.

They also believe it actually will cost about $89,000 less to make more of the custodians city employees, records show.

Other proposed new positions include another plumbing, gas and mechanical inspector, a third animal control officer, a part-time police evidence control technician and a full-time senior recreation assistant at the Rec Center (to replace two part-time recreation assistant positions).

In total, the new funding needed for all 17 new positions would be about $95,000.

The mayor also is proposing about $281,000 in salary upgrades for 14 job classifications. There are three jobs in particular where the city is finding it hard to compete in the job market with current salaries, including building inspectors, emergency communication officers and public works and park maintenance crew members, Rice said.

REVENUE PROJECTIONS

Brocato said city officials are being conservative with their revenue projections for next year. Even though the city received record revenues of $159 million in its three primary funds in fiscal 2021 and is on tap to surpass that with an amended budget of $177 million in fiscal 2022, he and his finance team do not expect those records to continue.

“We all know there is tremendous uncertainty in the national economy,” Brocato said. “We clearly do not know what will happen with inflation and other economic forces in the coming months, so we must prepare for as many possibilities as we can.”

Chief Financial Officer Tina Bolt said she based 2023 revenue projections on an average 4% growth rate historically, going back to 2020. The past two years of strong growth have been an anomaly, so to be conservative, she is counting on the city receiving only $154 million in its primary accounts in fiscal 2023, she said.

Brocato also noted the 2023 budget sets aside $1.6 million in a budget stabilization fund to help with any potential future revenue shortfalls and noted that the city also has increased its reserve fund to cover six months’ worth of operating expenses.

OTHER CAPITAL PROJECTS:

In addition to the capital projects mentioned near the top of this story, the mayor’s 2023 budget proposal also includes:

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