Chart courtesy of city of Vestavia Hills
City of Vestavia Hills revenue and expenditure trends from fiscal 2021 to 2026.
Vestavia Hills City Manager Jeff Downes on Monday night proposed a $123 million city budget for fiscal 2026, including more than $5 million for an addition to Fire Station No. 4 in Liberty Park.
The $123 million in proposed spending includes all city funds and would be a 6% increase from fiscal 2025, while Downes proposes for the city to spend $80.9 million from its general fund in 2026, up 10% from 2025.
The proposed increase in spending would be made possible by a projected 6% growth in revenues. Sales tax revenues are projected to grow 9.5% to $32.1 million, while property tax revenues are projected to climb 3.4% to $24.9 million.
“The city is in good financial health,” Downes said in a written report to the City Council.
The addition at Fire Station No. 4 is one of numerous capital improvements proposed for 2026. Others include funding for:
- Four Fire Department replacement vehicles and receipt of two replacement fire engines
- A sand volleyball court
- A heater for the aquatic center at Wald Park
- Supplemental money for the veterans’ memorial at Altadena Valley Park
- Improvements to the city’s southern gateway entrance on U.S. 31 near Interstate 65
- A traffic improvement project and resurfacing of a section of Liberty Parkway
- Infrastructure investments for The Bray at Liberty Park
- Nine miles of street resurfacing
- Installation or repair of three-quarters of a mile worth of stormwater drainage projects
- Design work for an east side police operations and training center, an east side library and improvements to the rear entrance of the Liberty park athletic fields. Construction money would come from a future budget year.
The proposed 2026 budget also would invest in employees, including a 2% cost-of-living increase for non-public safety employees, 3.5% cost-of-living and market-based pay increase for public safety employees, more money for longevity pay and education reimbursements for employees, a $30-per-month reduction in employees’ cost for health insurance and almost $70,000 more to pay for additional highly trained master police officers.
The city’s reserves have grown enough to allow city officials to pull from them to pay for the fire station addition, Downes said. From fiscal 2019 to fiscal 2024, the city’s general fund surplus and fund balance has increased 98% from $16 million to $31.7 million, Downes said. An anticipated surplus of $1.75 million for fiscal 2025 should continue this trend and allow for some one-time purchases within the capital fund, Downes said.
The city would continue to have more than 90 days’ worth of operating expenditures in the reserve fund, he said.
Downes said he anticipates having a work session with the City Council to address any budget questions council members may have before they vote on the proposal. The council typically approves the city budget prior to the start of the fiscal year on Oct. 1.
Additional details about the proposed 2026 budget can be seen on the city’s website under the city Finance Department tab and transparency portal at the bottom of that page.
