2025 Budget

Fiscal Year 2025 All Funds Budget

Funds Beginning Balance Estimated Revenues Estimated Expenses Ending balance
General Fund $18,685,087 $15,504,601 $14,490,324 $19,699,364
Special Revenue Funds $20,255,302 $8,198,433 $7,615,666 $20,838,069
Debt Service Funds $6,003,260 $5,274,500 $5,315,784 $5,961,976
Capital Projects Funds $5,027,365 $4,138,200 $4,810,399 $4,355,166
Fiduciary Funds $1,290,994 $415,180 $300,406 $1,405,768
Total Budget $51,262,008 $33,530,914 $32,532,579 $52,260,343

Revenue Estimates

  • Earnings Tax estimate of $13.26 million is a very conservative 2% increase over FY 2024. Year over year, earnings tax averages an almost 4% increase.
  • We have estimated the 2025 Property tax collections to increase 1% over 2024 collections. 2024 collections averaged a 20% increase with the revaluation of property in 2023.
  • All other revenue sources to remain relatively flat over the next five years

Expenditure Assumptions

  • Personnel estimates are in line with current union agreements and include a 4.0% COLA in FY 2025. Savings in 2024 are a direct result of vacancies.
  • The 2025 Non-personnel line items such as contractual services, materials and supplies for the General Fund have increased an average of 1.6% from 2024.

General Fund Budget

City of Montgomery General Fund Budget Summary - Fiscal Year 2025
Projected Beginning Balance $18,685,087
Estimated Revenues and Transfers In $15,504,601
Estimated Revenues and Transfers Out $14,490,324
Positive Variance $1,014,277
Projected Ending Balance $19,699,364
6 Month Reserve Policy $7,245,162
Unreserved Fund Balance $12,454,202

General Fund Budget

  • FY 2025 General Fund Revenues are slightly lower, 2%, than the 2024 revenues due to a Grant received in 2024.
  • This includes the earnings tax projection to includes conservative 2% increase overall.  Earnings tax is distributed 75% to the General Fund, 20% to the Capital Improvements Fund and 5% to the Bond Retirement Fund.
  • The 2025 General Fund estimated expenditures (excludes transfers out) increased by $1.3 million or 11% year over year due to cost-of-living adjustments for staff, increased materials and supplies cost in department budgets.
  • The budget includes staffing all positions at 100% of cost so any vacancies will generate budget savings while the position is recruited and ultimately filled. These savings are trued up following the subsequent year budget meeting and again at the end of the year. The purpose of this is to reduce variances.

Capital Projects Funds Budget

City Parks

  • FY 2025 includes replacement of playground equipment.

General Government

  • Fleet management program includes expenditure of $600,000.

Street Maintenance and Repair

  • Two years of annual street asphalt overlay was accomplished in 2024 in an attempt to minimize supply chain and cost premiums that may arise due to the Brent Spence bridge project.

Fund Balance Policy

City of Montgomery General Fund Budget Summary - Fiscal Year 2025
Projected Beginning Balance $18,685,087
Estimated Revenues and Transfers In $15,504,601
Estimated Revenues and Transfers Out $14,490,324
Positive Variance $1,014,27
Projected Ending Balance $19,699,364
6 Month Reserve Policy $7,245,162
Unreserved Fund Balance $12,454,202

Fund Balance Policy Other Funds

  • General Fund (established target of six – twelve months of operating expenditures).
  • Capital Improvement Fund 410 - established target of $1,000,000.
  • Arts and Amenities Fund 485 (established at $376,237, equivalent to two substantial restricted bequests to the fund).
  • Fire/EMS Levy Fund 223 (established target of six – twelve months of operating expenditures).

 

Fund Description Policy Projected Balance 2027 Policy Met?
101 General Fund 6-12 months operating expenditures $23,587,104 Yes
Fund 223 Fire/EMS Levy 6-12 months operating expenditures $15,902,973 Yes
Fund 410 Capital Improvement $1,000,000 $2,747,971 Yes
Fund 485 Arts and Amenities Restricted bequests of $376,237 $555,076 Yes

Next Steps

  • October 9 - Amend Appropriation 2024.
  • First reading of the 2025 budget on October 9.
  • Second reading of the 2025 budget on November 6.
  • Third reading and passage of the 2025 budget and passage on December 4.
  • Any final appropriation adjustments for FY 2024 for consideration on last scheduled Council Meeting of 2024.

Contact

Maura Gray

Finance Director
513-792-8349

Close window