The Birmingham City Council on Tuesday unanimously approved the $436 million fiscal year 2019 operating budget.
The budget is $8 million larger than last year's budget, due to increased revenue from use and occupational taxes. According to the mayor's office, 133 vacant jobs were cut from the budget, saving the city $4.7 million.
Despite the larger budget, Mayor Randall Woodfin said there still wasn't enough money for street paving or additional funding for Birmingham City Schools.
Tuesday's passage of the budget was about two weeks ahead of the start of the fiscal year. The budget passed 8-0. Councilor Lashunda Scales wasn't present for the vote.
The only money for street paving in 2019 is coming from the Alabama Department of Transportation.
Andre Bittas, director of planning, engineering and permits, said the city received $2.2 million in funds from ALDOT for citywide street paving. Another $2 million has been committed from ALDOT for street paving in the Fountain Heights neighborhood due to the interstate construction in the area. He said $4 million is also being spent on truck routes in Districts 6 and 7.
Last week, Woodfin told city councilors that he wanted to put some general fund money towards paving in 2019. That plan went to the wayside, though, when he learned the city must make an unanticipated payment to Trane for ongoing energy upgrades.
The city announced in 2016 a plan to invest $61.3 million for energy upgrades in 125 city buildings. This was expected to create $100 million in energy and operational costs over the next two decades.
Birmingham City Schools will receive $3 million.
Woodfin restored funding to the city's 99 neighborhood associations in the budget after hearing objections from the council and residents. Each neighborhood will receive $2,000 for a total of $198,000.
In the 2018 budget, neighborhood associations were allocated $499,700.
The mayor appropriated $3.2 million for weed abatement and demolition of dilapidated structures in the 2019 budget.
"A lot of this budget reflects our No. 1 priority and that is neighborhood revitalization. There is more money for weed abatement and demolition as far as putting money on the ground in neighborhoods,'' Woodfin told reporters following the council meeting.
Among the budget highlights are:
- A 1 percent cost of living adjustment for all city employees (at a cost of $2.8 million)
- Continuation of merit pay and longevity pay for employees (totaling $4.3 million)
- Funding for expansion of the Birmingham-Jefferson Convention Complex ($3 million a year for 30 years)
- Preventative building maintenance ($495,000)
- Replace street lighting ($400,000)
- Replace interstate lighting ($500,000)
Woodfin increased pension funding in 2019 by $2.9 million. That brings the city's pension funding to about $23.4 million in 2019.
The city's major pension fund -- the Retirement and Relief System -- is underfunded by 25 percent or about $330 million, according to the city's 2017 financial report. The Fire & Police Supplemental Pension System was underfunded by $52.9 million as of July 2016.
Updated at 3:50 p.m. with quote from Mayor Woodfin and amended appropriation for weed abatement and demolition.