The city’s financial future was discussed at Hoover’s city council meeting on Monday night. Councilors specifically discussed where the city is headed in the next five years.
Porter White and Company, a local audit company, brought a 5-year projection to the meeting. They shared statistics and data and essentially determined that the city is breaking even financially.
The company said the city needs to make changes because soon, the city could be spending more than they’re getting back.
Mayor Frank Brocato said since 2016, he was aware of the possible financial problems, but he wanted an outside look, so he hired this audit company.
“What happened in the past is in the past,” said Mayor Brocato.
Mayor Brocato was not surprised by the findings of the audit and says part of the cause is the ‘Amazon effect’.
“We depend on retail so much, so that’s having an effect on it and the population of Hoover is not increasing that much, so we’re dealing with the same amount of people,” said Mayor Brocato.
Councilman John Lyda, who is the chairman of the finance committee, said it’s important to know that these are projections.
“There’s no time to panic at all. In fact, revenue is currently outpacing projections by over millions of dollars and expenses are underperforming projections by 3 million, so no need to panic, but it’s good projections to look at,” said Lyda.
Now the big question is how is the council going to avoid falling into a deficit?
“The elephant in the room is a tax increase,” said Councilman Mike Shaw.
Mayor Brocato said the city will look at is job positions that are retiring and if those positions need to be refilled. He emphasized that public safety is the most important thing.
“Everything is on the table. We’re going to look at everything to make sure we’re offering the best services that our citizens can get and what they expect,” said Mayor Brocato.
The mayor plans to come back to the committee with ideas on how to avoid the deficit in two weeks.