Vestavia Hills Council Approves Record $146 Million Budget

Vestavia Hills general fund reserves grew by 78% between fiscal 2020 and fiscal 2025, a surplus City Manager Jeff Downes said positions the city for increased spending.

The City Council voted on October 30 to approve a fiscal 2027 budget of $146 million, representing an 18.5% jump from the previous year. Downes stated that the majority of the additional cost stems from $34 million in planned one-time capital projects.

The city intends to borrow $46 million to fund these infrastructure upgrades. The largest allocation is a $14.7 million police operations and training center in Liberty Park. Additional funds will cover a $9 million replacement of natural turf with artificial turf at Liberty Park baseball and softball fields, as well as a $5.3 million renovation and expansion of the Liberty Park fire station.

Smaller capital projects include a new public works and recreation maintenance facility next to the Sicard Hollow Athletic Complex, estimated at $1.75 million, and a $1.17 million realignment of entrances to the Liberty Park athletic complexes.

Downes described the city’s financial strategy as a balance between stewardship and investment. He noted that while conservative policies have allowed reserves to accumulate, the council has identified specific needs to address. The general fund budget for fiscal 2027 calls for $83.5 million in spending, a 3.2% increase from 2026.

The operating budget includes a 2% cost-of-living increase for city employees, costing approximately $600,000, along with 5% merit raises for eligible staff. It also covers a full year of pay for 12 new firefighters, two new technicians for maintenance and IT support, and the completion of a veterans memorial at Altadena Valley Park. Infrastructure spending includes repaving 9 miles of streets and upgrading stormwater drainage.

Revenue projections for fiscal 2027 show sales tax income rising 2% to $33 million, following a 45% growth from $21.8 million in fiscal 2020 to $31.6 million in fiscal 2025. Property tax revenues are projected to increase 6% to $26.4 million, while business license revenues are expected to jump 16% to $7.8 million. A new Walmart Neighborhood Market is scheduled to begin construction in January, though officials do not expect it to impact 2027 revenues.