Mayor Randall Woodfin stood in front of a crowd Monday night holding up a dollar bill. The city spends 75 cents of every dollar on personnel, with just a quarter going to Birmingham’s operating budget, he told the residents and officials gathered.

Birmingham officials held the town hall — during which Woodfin explained the city’s budget process and residents had a chance to voice their interests — as the city prepares to create a new budget, for the fiscal year that begins July 1.

Council President Darrell O’Quinn said that, to the best of his knowledge, Monday’s event, held at Boutwell Auditorium, was the first such budget town hall city leaders have done.

“As a council, we are making a commitment to do more of this type of thing,” he said.

As for the sources of Birmingham’s $554 million budget, Woodfin said nearly 80% comes from business licenses and taxes.

“As a city, we are heavily dependent on small business and also, you and your neighbors coming in and spending money,” the mayor said.

Property taxes account for about 7% of the city’s revenue, while charges for services provide 3.3%. Fines and fees account for 0.3% of the city’s general fund revenue.

In terms of where that money is spent, 83.7% goes toward city departments. Other allocations include:

• 5% to non-departmental costs
• 4.2% to debt services
• 2.3% to other boards and agencies
• 3% to transit
• 1.2% to redevelopment and infrastructure incentives
• 0.6% to youth programs.

Large appropriation items in the fiscal 2024 budget include:

• $18.5 million for neighborhood investments such as street paving, weed abatements and demolition.
• $6 million for youth programs such as mental health services as well as conflict resolution and financial literacy courses.
• $5 million for fleet expenditures.
• $6.3 million for Parks and Recreation support.

Questions From the Crowd

Many of the questions submitted during Monday’s town hall concerned transportation, with one resident asking how the city determines which roads to pave. Woodfin said he doesn’t care for the city’s current system, which is part of a five-year plan from the previous council and administration.

“It has felt squeaky-wheel driven,” he said.

He said this is the fifth year of that plan, and once it’s complete, the city will move to a system in which a third party will evaluate each roadway and assign it a letter grade. The lower the grade, the higher the priority for repairs.

Woodfin said the grades will be made public once the city receives them.

Another resident asked whether Birmingham would ever have a mass transit system that serves the entire city. City officials said state funding represents a major obstacle for such a program. According to Woodfin, Alabama law requires state transportation funds to be spent on roads, not public transit systems. However, the mayor pointed out that the city has invested in more targeted public transportation programs such as $2.5 million allocated in 2024 for Birmingham on Demand, a public ride sharing service.

One resident asked if the Magic City Classic would ever receive a decrease in funding.

“Why?” the mayor asked, saying the event not only pays for itself, but provides a $26 million economic impact to Birmingham.