The Montgomery City Council has passed the FY 2025 General Fund and Debt Service Budget. It totals more than $300 million.
The budget features a 15-percent pay raise for all Montgomery Police Department sworn officers and a five percent cost-of-living adjustment for all other city employees.
The move marks yet another raise for city employees under Mayor Steven L. Reed, after police department, fire department, sanitation workers and others saw increases in the FY 2022 budget.
“As I have stated before, I am truly thankful for the tenacity of our employees, citywide, to ensure that services are provided to the citizens of Montgomery uninterrupted,” said Mayor Reed in a press release. “Being competitive with salaries will allow the city to continue its efforts of hiring and retaining qualified employees to best serve our citizens.”
The overall budget figure is a 6.5 percent increase from the FY 2024 budget.
This is the first cost-of-living adjustment provided to city employees since 2012. The proposed budget also includes the accompanying fringe benefits such as FICA/Medicare, Retirement and Health Insurance expenditures.
“As the city grows, so too does the need for the city to grow the services it provides, and being proactive is crucial when hiring and retaining qualified employees to best serve our city,” Mayor Reed said.
The increases were made possible by stable growth for the City of Montgomery in key revenue sources, including sales and use taxes, ad valorem taxes, and business licenses, as well as savings from a reduction in long-term debt, which now stands at $26 million.
Additional strategic efforts, such as securing over $50 million in grant funding and a $5.15 million inter-fund transfer, have further strengthened the city's financial position under Mayor Reed. These measures ensure that the budget can support necessary investments in services, infrastructure, and employee compensation while maintaining financial stability.
The budget passed with seven city council members voting to adopt what was the proposed budget.
