Northport Approves Reserve Increases, $6.6M In Capital Projects Budgets

NORTHPORT, AL — The Northport City Council on Monday approved nearly $7 million in capital projects from its General Fund and Water & Sewer Fund budgets for the coming year.

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A total of $2.7 million was budgeted for Water & Sewer capital projects, including improvements to the both of the city's wastewater treatment plant and developing a Phase 1 master plan for the facility. This will only require a little more than $2 million in this year's funding, City Finance Director Darren McGee said, due to budgeting from the prior year.

Additionally, $400,000 will now been allocated to rehabilitate the Jackson Water Tank.

Water & Sewer 2023 Capital Budget

General Fund & More

On the General Fund side, the City Council approved $3.9 million in funding for capital projects, including $900,000 to remodel the city's Public Works building and $750,000 for the highly publicized push by City Hall to resurface many city streets and high-traffic roads.

In addition to the city's allocation for the Public Works building, $1 million will come from the Alabama Trust Fund.

Other notable General Fund capital project allocations:

• Northport Fire Rescue Engine 3 replacement ($600,000)
• Rescue truck replacements ($300,000)
• Spillman Server Project ($250,000)
• Five new patrol cars for Northport Police Department ($238,481)
• New HVAC for Northport Public Safety Building Police ($250,000)
• New garbage truck ($260,000)

Monday night saw several financial measures approved that city leaders previously said underscore the positive growth over the last decade.

Another measure passed aligns with the city's focus on whittling down debt — a $825,000 allocated to pay off an interfund loan to the city's Water & Sewer Fund after the city in 2016 borrowed money from the Water & Sewer Fund to cover the city's General Fund.

Perhaps the most impactful measure, however, saw $1 million allocated from 2023 Northport First Funds to the city's General Fund reserves — an amount that will see its reserves rise to 15%.

This is also in excess of the 10% required by the city's bond agency.

What's more, the City Council approved $425,000 for Water & Sewer reserves to bring its funding to over 15%.

Northport First Funds are collected as the revenue from the city's 1-cent sales tax. This is notable given past financial turbulence for City Hall and the suggestion by the city's bond rating agency to make it a priority to boost reserves to 15% for both its General Fund and the Water and Sewer fund.

The 1-cent sales tax, while initially received with skepticism by some, has proven quite successful, with the city collecting more than $19 million over the last three years.

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