Charts courtesy of city of Vestavia Hills
The city of Vestavia Hills’ general fund balance history, fiscal years 2019 to 2025.
The city of Vestavia Hills ended fiscal 2025 in a strong financial condition, with total revenues increasing 4% from fiscal 2024 to $84.2 million and the city’s general fund balance growing 5.3% to $33.3 million, according to the 2025 audit approved by the council in July.
Sales and use taxes, the city’s largest source of revenue, totaled $31.6 million, an increase of $2.1 million or 6.9%, from 2024, the audit shows. Sales and use taxes accounted for 37.6% of all revenues received in 2025.
Sales and use tax revenues have grown 142% over the last nine years from $13.1 million in 2016 to $31.6 million in 2025. The biggest source of sales and use tax revenue was restaurants, bringing in $4.85 million in 2025 and surpassing grocery stores for the first time in at least nine years.
Chart courtesy of city of Vestavia Hills
City of Vestavia Hills' history of sales tax receipts, fiscal years 2009 to 2025.
Grocery store sales and use tax revenues declined from $5.48 million to $4.83 million — the first decline in at least nine years. That decline was perhaps related to the closure of the Winn-Dixie in Cahaba Heights in May 2025.
City officials are eager to see the redevelopment of that site as a Walmart Neighborhood Market, which will help boost tax revenues once again. There is a Publix nearby, but it is in the city limits of Mountain Brook, and those tax revenues go to Mountain Brook.
In 2025, Vestavia Hills also received $4.56 million in sales and use taxes from retail merchandise stores, $3.24 million from home furnishings and building supply stores, $1.08 million from automotive sales and $11.19 million from a variety of other sources, the audit shows.
The largest sales tax payers, in order, were: Publix Alabama, Walmart, Royal Automotive, Mark’s Outdoors, Apple, American Multi Cinema, Raj Ajit Hotel, Jaxnco, Walgreen and JC Hospitality.
Property taxes collected for 2025 totaled $21.4 million — an increase of 2.6% from $20.9 million in 2024 and up 67% from $12.9 million in 2016. Revenue from licenses and permits decreased in 2025 by 16.4% to $1.4 million.
The city’s total expenditures from government funds in 2025 were $88.3 million, which led to a 6% decline in the overall fund balance — or $2.8 million, ending with $43.4 million as an overall fund balance on Sept. 30, 2025.
The city’s general fund saw its revenues exceed budgeted revenues by $6.5 million or 10%, and actual expenditures exceeded the budget by $2.3 million or 4.4%. The overage resulted principally from new economic incentive programs increasing general government expenditures by $2.4 million or 24.6%. The end result was a $1.6 million increase in the general fund balance at the end of the year.
The city of Vestavia Hills had $141.5 million of long-term debt and liabilities at the end of 2025, including $80.6 million in outstanding principal owed on warrants that were borrowed for various reasons dating back to 2013.
The city’s payment plan calls for paying $7.4 million in principal and interest for each of the next three years, about $7 million per year for two years after that, and then an average of $6.3 million for five years after that. Total payments due through 2048 totaled about $109 million.
However, city leaders are contemplating borrowing additional money to pay for other projects that include a new police station, maintenance facility and library/community center in Liberty Park. The city’s debt limit is $237 million, so it is well within its debt limits.
To see the full audit, go to vhal.org/financial-statements.
