2021 Budget

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FY2021 Proposed Operating Budget

FY2021 Proposed Capital Budget

Summary

The city of Birmingham finds itself in a very similar situation as cities across the state and our nation. The National League of Cities estimates the economic impact of the pandemic has created a $360 billion shortfall for cities through 2022. Our economic outlook is directly connected to a crisis that currently has no defined end. The city faces a $63-million shortfall in business tax revenue. While other cities have cut into basic services that will not be an option in Birmingham.

The residents of our city expect a commitment to basic services. We must not overlook that expectation nor can we back away from our duty. Please review the information on this page and receive updates through the city’s social media channels.

Sincerely,

Mayor Randall L. Woodfin

Mayor Woodfin presents proposed 2021 budget to City Council on August 18, 2020

The Problem

The proposed budget for FY2021 is $412 million. The previous budget was $451.4 million.

The city faces a $63 million shortfall in business tax revenue due to the economic impact from the COVID-19 pandemic.

The city currently commits 70% of every dollar into personnel costs.

The Commitment

Neighborhood revitalization remains the priority in Mayor Woodfin’s proposed FY2021 operating budget.

Street resurfacing, demolition, weed abatement and the City Haul recycling pilot project will each receive the same amount of funding as FY2020.

The city will meet its obligations to fund the pension program with an increase over FY2020’s contribution.

Click here to see a recent history of funding for the city’s pension program. 

Furlough impact on Culture and Recreation Facilities

The City of Birmingham’s projected $63 million revenue shortfall that developed as a result of the economic impact of Covid-19, has called for tough decisions this budget season. When the budget was first presented to the Birmingham City Council in August 2020, the budget line items for culture and recreation facilities did not include cost savings from furloughs because those actions are taken at an administrative level.

Departments cannot add or reduce staff without approval from the administration.

For example, the Birmingham Public Library was originally listed as $12.8 million in the proposed budget when it was presented in August 2020. That original line item did not include the furloughs because they had not yet been approved by the library board and had not happened.

Now that the library furloughs have happened, the library’s 12-month operating budget totals $6.2 million.

This was the same process for each of the 8 culture and recreation facilities in the budget.

All furloughs are indefinite based on the financial situation due to the pandemic.

None of these actions are taken lightly. Our efforts are designed to protect the financial stability and the critical essential services we provide for residents.

Furlough Revisions Allocation for Culture and Recreation

Furlough Revisions Summary

 

Know the Facts

As we continue to work through a $63 million shortfall for the budget currently before the City Council, we want to assure the public that basic city services such as public safety and general government will not be reduced.

We have worked closely with the library board and parks and recreation board to identify enough funding for those boards to provide residents the current services that had previously been reduced due to the COVID-19 pandemic.

The mayor discussed these matters and addressed employee questions during a tele town hall on Friday, August 28, 2020.

New: Year-End Tele-Townhall (December 30, 2020) 

Community Budget Tele-Townhall (September 10, 2020) 

 

City of Birmingham Budget Tele-Townhall (August 18, 2020)