Mayor Reed unveils balanced budget with $20 million increase, including pay raises

Tuesday, Montgomery Mayor Steven L. Reed proposed a $20 million increase for city agencies and departments, most of which will go directly to city employees.

The mayor’s proposed FY 2025 General Fund and Debt Service Budget totals $331,625,628, a 6.5 percent increase over current-year funding. It includes a 15 percent pay raise for all Montgomery Police Department sworn officers and a 5 percent cost-of-living adjustment for all other city employees. This is the first COLA provided to city employees since 2012. The proposed budget also includes the accompanying fringe benefits such as FICA/Medicare, Retirement, and Health Insurance expenditures.

The increases were made possible by stable growth in key revenue sources, including sales and use taxes, ad valorem taxes, and business licenses, along with savings from reduced long-term debt, now at $26 million. Additional strategic efforts, such as securing over $50 million in grant funding and a $5.15 million inter-fund transfer, have further strengthened the city’s financial position. These measures ensure that the budget can support necessary investments in services, infrastructure, and employee compensation while maintaining financial stability.

View the Mayor Reed’s budget presentation here.