Demopolis City Council passes budget of $17.5 million, 30% larger than this year's budget

The Demopolis City Council has approved a budget for the next fiscal year of $17.5 million, an increase of almost 31% over the current budget.

The budget for the next fiscal year, which starts on Oct. 1, requires drawing $3.4 million from the city’s reserves.

Demopolis Mayor Woody Collins said the city had $10.5 million in reserves.

“The city’s finances had almost become a savings bank,” Collins said. “This will show the community we are putting the money back into the community as quickly as we can."

Even after transferring $3.4 million into the budget, the city will have about $6 million, more than half a year’s operating expenses, in the bank, Collins said.

The current budget, which ends on Sept. 30, is $13.4 million. The city drew out $1 million from reserves last year for that budget.

The budget that goes into effect on Oct. 1 is built on sales tax revenue of $6.5 million and property taxes of $2 million. Business licenses account for $1.5 million, and other fees and taxes bring the city’s income to $17.5 million.

As for expenses, the Demopolis Police Department has a budget of $3.1 million, including $2.6 million in personnel. The Fire Department budget is $2.6 million, including $2.2 million in personnel. The Fire Department is also budgeted to receive the city’s largest capital project of 2027, a $1.2 million expansion of Fire Station No. 1.

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Public Works is budgeted for $1.5 million, including $1.1 million in personnel. The Horticulture Department accounts for another $243,000. The Demopolis Airport is budgeted for $120,000, plus a $500,000 capital project.

The Library is set to receive $374,000, Municipal Courts $169,000 and Animal Control $94,000. The city set aside $130,000 in the capital improvement budget for a new animal shelter.

Other capital budgeted capital projects include $150,000 for the Civic Center and $225,000 for renovation of the Old School.

The budget sets aside $1.6 million for grant matches, including $900,000 for a FEMA shelter and $200,000 for sidewalk improvements.

The city will support area organizations, including $801,000 to Parks and Recreation, $100,000 to the Chamber of Commerce, $50,000 to Main Street Demopolis and $50,000 to the new Dream Center Hands On Museum.

The city of Demopolis will spend a little more than $2.4 million to service debt on loans for paving, fire trucks and bonds. That includes about $800,000 in principal and interest on a bond for Bryan Whitfield Regional Hospital. BWRH is also set to receive $100,000 in sales tax revenue through the city.   

The mayor is set to receive a salary of $40,000 and $10,000 for travel and training, and he will have access to a $23,000 discretionary fund for projects. The city council salary will be $30,000 total, and salaries and operation of City Hall will be $363,000.