Hoover Could End Year With $2.8 Million Deficit

HOOVER, AL - The City of Hoover could finish the 2018 fiscal year in some serious debt, according to a financial consultant hired by the city. The council met Tueday night and heard a report from Jim White, a consultant with Birmingham's Porter, White & Co., and learned the city could be facing a $2.8 million deficit by the end of the fiscal year.

A report from the Hoover Sun said sales tax revenue has dropped, and that the city is looking at ways to counter that drop to avoid a major deficit. Sales tax revenue dropped from $71.5 million to less than $71.4 million, records show. Total revenue for all governmental funds decreased by $1.9 million in fiscal 2017, with most of that coming from the general fund. Overall tax revenues rose only $280,352 in 2017, while license and permit revenue fell by $573,038, money from other governments fell by $990,652, and fines and forfeiture money decreased by $544,640. These decreases are the worst since 2009.

The city's expenses, in the meantime, have increased 3.19 percent. The bulkof those expenses come from the city's increased financial pledge to Hoover City Schools ($2.45 million), adding more full time city employees ($3.5 million) and the addition at the Hoover Metropolitan Complex ($4.4 million).

The city is reviewing options to offset the increased costs, and while a tax increase is one of those options, mayor Frank Brocato said he is not going to make any rash decisions and would make a recommendation for dealing with the financial issue to the City Council in two weeks.

Photo by Michael Seale/Patch