Photo by Jon Anderson
The Hoover City Council meet on Monday, Feb. 9, 2026 at Hoover City Hall in Hoover, Alabama. Council members shown here, from left, are Derrick Murphy, Casey Middlebrooks and Khristi Driver.
The Hoover City Council on Monday night changed its policy on its general fund reserves to make it less stringent and free up money for more capital projects.
The previous City Council in April of last year amended its reserve fund policy to reduce the required reserves from six months of operating expenses to a minimum of $60 million and to adjust the reserves annually by the lesser of four months’ worth of revenues or the regional Consumer Price Index.
The new policy approved this week requires the city to maintain a general fund balance greater than or equal to 35% of general fund revenues for the current fiscal year and to transfer any amount over 40% of general fund revenues to the capital projects fund.
Fiscal 2025 financials are still being audited, but city officials estimate the transfer to the capital projects fund will amount to $12 million, interim Chief Financial Officer Melinda Lopez said.
Also, the Government Finance Officers Association recommends having a general fund balance that has at least two months of general fund expenses. However, if there are significant issues suggesting otherwise, the GFOA indicates that more may be needed in the fund balance.
Lopez said Hoover’s high reliance on sales tax revenue is a significant factor that would merit having a larger fund balance. The 35% to 40% range required by this new policy provides 4.2 to 4.8 months’ worth of operating expenses, she said.
The new policy is still a conservative approach to financial planning that ensures money is there to cover emergencies, but it doesn’t tie up a bunch of money in a fund balance as needs in the city go unmet, Lopez said.
In other business Monday, the City Council:
- Gave approval for the O Sushi restaurant at 5519 Grove Blvd., Suite 101, to sell alcoholic beverages
- Agreed to apply for a $350,000 grant from the Alabama Department of Transportation to help resurface Sulphur Springs Road from Shades Crest Road to Preserve Parkway (near The Grove), as well as repave Sandpiper Lane. The city would need to provide $100,000 to supplement the grant funds if received.
- Approved an agreement with the United Ability nonprofit to provide employment opportunities at the Hoover Recreation Center for people with disabilities
- Renewed a three-year agreement with the Perfect Game organization to hold events at the Hoover Metropolitan Complex, with a rate increase of $50 per field, plus an increase of $10 per field each subsequent year. Perfect Game events at the Hoover Met Complex are estimated to have a $23 million to $25 million economic impact per year, Hoover Met General Manager Shannon Ealy said.
- Agreed to hire Na-Rom Strategies Corp. to provide marketing and communications services for the city at a cost of $16,700 per month, plus a one-time startup fee of $15,000. This is a company run by B.J. Ellis, the CEO of the Telegraph marketing agency and former CEO of Yellowhammer Multimedia, who also was involved in Mayor Nick Derzis’ campaign and vice chairman of Derzis’ transition team when he came into office.
- Set a public hearing for Feb. 23 to consider approval for Orange Development to turn a commercial building at 1543 Montgomery Highway into a three-tenant shopping center.
- Appointed Heather Skaggs to the Hoover Arts Council, concurred with the mayor’s appointment of Matina Johnson and Darla Williamson to the Arts Council and reappointed Pamela Sayle to the council
