HUNTSVILLE – The Huntsville City Council was given a mid-year update at its regular meeting Thursday night and the report was “fiscal stability.”
City Finance Director Penny Smith said General Fund finances are on track for fiscal year 2024 projections and that the city is operating within budget. The council approved the administration’s proposal, based on analysis of the first six months of the fiscal year, to increase the General Fund by $1.15 million on both revenue and expenditure sides.
“We are on budget for both revenues and expenditures,” Smith said. “We’re holding our own. We’ve got some great plans already built into this budget that will continue.”
Sales & Use Tax, the city’s largest revenue source, increased more than 3% over the first half of the year compared to the first half of the 2023 fiscal year. Huntsville also saw a significant uptick in revenue from investments, bringing in 428.5% of its budget this fiscal year. An evaluation by Huntsville Utilities resulted in the city saving more than $1.3 million in its fiber lease rate.
The city saw a decline in revenue from permits due to the completion of large projects in recent years, the current economic environment and increased cost of financing.
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