Selma City Council to consider balanced budget two days before Oct. 1 deadline

The Selma City Council is trying to get a budget approved before the fiscal year ends Sept. 30.

After work sessions on Wednesday and Thursday, the Finance Committee will present the full council with a $21.7 million budget at a special called meeting on Monday, Sept. 29.

By state law, the city must have a balanced budget by the time the new fiscal year begins on Oct. 1. The original plan was to continue the existing budget into the next fiscal year so that the new mayor and city council can create their own budget after they take office on Nov. 3.

Finance Committee Chairman Troy Harvill, who was reelected to the council, said that the council can’t lawfully carry over the current budget because the budget is not balanced. Projecting the first 11 months of revenue and expenses to 12 months shows that expenses will exceed revenue by more than $1.9 million.

Because the city has only about $900,000 in cash reserves to fill the gap, the new mayor and council would start their terms with a $1 million deficit if the budget were carried over, Councilman Clay Carmichael said.

The Finance Committee set about correcting the situation by creating a balanced budget, meaning the revenue and expenses match. The budget calls for $20,995,000 in revenue and $21,685,000 in expenses. The gap between revenue and expenses will be filled by $690,000 from reserves.

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The committee balanced the 2026 budget by removing several one-time expenses from the current budget. Next year’s budget won’t have to include $400,000 spent on the city-wide camera system or a litter control program that was in the current budget but wasn’t done because it was opposed by Selma Mayor James Perkins Jr.

The finance committee agreed not to reduce any salaries or funding for contracts and grants.

Whatever budget the city council approves Monday, the new mayor and council will be free to revise it once they take office, Harvill said.

The budget will be considered at a special called meeting on Sept. 29. 

The council meets Sept. 30 to certify results of the Sept. 23 runoff.