Demopolis City Council approves $13.4 million budget

The Demopolis City Council has approved a $13.4 million budget.

The budget, which will take effect Oct. 1, lists $10 million in taxes, $1.4 million in business licenses and $425,000 in investment income. Slightly more than $1 million will be transferred from reserves into the general fund.  

“As per state code, we are only allowed to allocate 90% of our anticipated revenues,” so transferring reserves into the budget and not spending the money allows the city to spend its “entire revenue stream,” Collins said.

“To the best of my knowledge, in the 13 years that I’ve been either a councilman or mayor, we have never actually transferred any money from reserve to the general fund to cover a shortfall,” Collins said.

The city has around $6 million in reserves, according to Collins.

As for expenses, Demopolis will spend $2.6 million on the police department, $2.3 million on the fire department and $2.3 million on general government. The city will spend $1.1 million to service its long-term debt, and it will set aside $1.3 million to match state and federal grants.

The city council also voted to spend $20,000 to complete a covered stage in the southwest corner of the Demopolis public square. Main Street Demopolis obtained a $20,000 grant that would have completed the stage, but they couldn’t pay for the roof until next year. The city council voted to put another $20,000 into the project to put the roof on the bandstand.

“We didn’t like idea of a half-finished stage in the park for a year,” Collins said. He said the goal is to have the bandstand finished by Christmas on the River in December.