Birmingham Mayor Randall Woodfin on Tuesday proposed a $554 million city budget for the fiscal year 2024, which starts July 1, 2023.

The budget anticipates a continuing steady increase in revenue for the city from previous years.

The budget projects sales tax revenue to top more than $146 million. Other major revenue streams include $116 in occupational licenses and $73 million in business licenses.

The proposed operating budget total is $554,805,617, with $464,375,563 in appropriations to city departments.

That includes a large increase in funding for street paving: $15 million, a $2.5 million increase from fiscal 2023.

“I am very pleased with the commitment we have made to street resurfacing,” Woodfin said. “It is a priority for residents therefore it is a priority for me. Over a five-year period, we have committed $60 million to street paving in our operating budgets. This work will continue.”

Woodfin has also emphasized investments in youth to help curtail crime over the long term, along with neighborhood revitalization, public transportation and cost-of-living increases for the more than 4,000 city employees.

Birmingham Promise, which offers college scholarships to city schools graduates, will receive $2 million. The city schools will received $1 million for mental health counselors and programs, $1 million for a financial literacy program; $1 million for a conflict resolution program, in partnership with city schools; $500,000 for the Safe Haven Program through the Parks and Recreation Department, $225,000 for the RESTORE juvenile re-entry program and $210,000 for the Kids and Jobs program through the Department of Youth Services.

The Birmingham City Council set a public hearing for June 5 at 5:30 p.m. at Boutwell Auditorium.

The budget for Birmingham Police remains flat at about $115 million, after accounting for an extra $2.7 million set aside for police overtime pay during the World Games last year, with 1,098 employees including 726 sworn officers.

Public transportation receives a significant boost in the proposed budget with $11 million for the Birmingham Jefferson County Transit Authority’s fixed route service, $3 million for the Birmingham Xpress bus rapid transit system and $2.5 million for the Birmingham on Demand shared mobility service powered by VIA.

The budget provides funding for additional neighborhood revitalization efforts, such as $2 million for weed abatement, $1 million for demolition of abandoned structures, $500,000 for Land Bank acquisition of property, $200,000 for sidewalks and $250,000 for traffic-calming measures such as speed bumps.

The budget proposes a five percent cost of living adjustment for police and firefighters. That would follow up on two separate five percent cost-of-living increases provided for all city employees since May 2022. The budget also funds merit and longevity pay for employees.

Merit Pay is available for over 2,500 eligible employees and Longevity Pay for nearly 1,900 eligible employees.

The city will cover the majority of an increase in health benefits cost for employees.

“We have already dedicated $60 million from budget surplus to invest in our people, neighborhoods and facilities,” Woodfin said. “We are leveraging the more than $140 million provided by the Biden-Harris administration’s American Rescue Plan Act to make an impact in our community. This proposed operating budget combined with those investments will provide an opportunity for us to support our shared priorities, enhance our current efforts and position Birmingham for continued growth.”

Ruffner Mountain, Rickwood Field and Red Mountain Park get $250,000 each; Vulcan Park $525,000; Birmingham Zoo $500,000; and Railroad Park $944,000. The Birmingham Civil Rights Institute would get its usual $1 million appropriation, plus another $1 million for capital improvements.

Woodfin’s proposed budget can be viewed online.

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