The city of Vestavia Hills' general fund revenues have grown 69% between fiscal 2018 and fiscal 2024.

The city of Vestavia Hills on Monday night announced record revenues for the fiscal year that ended Sept. 30.

City Manager Jeff Downes told the Vestavia Hills City Council that the city ended fiscal 2024 with $71.2 million in general fund revenues, a 7.39% increase over fiscal 2023. Downes said the growth in the city’s coffers continues a trend that has grown revenues by 69% over the last six years.

"I think it's important to note that, if you look at FY 2018, our total general fund revenues were $42.1 million," Downes said. "Over the course of several years here, there has been a significant and healthy growth in revenues.”

The increase in general fund revenue is largely driven by increases in three major categories: sales and use taxes, property tax revenue, and licenses and permits, Downes said. The city took in $16.5 million in sales and use taxes in fiscal 2018, and that has grown steadily over the years, peaking at just more than $29 million for the last three years, he said.

However, Downes said the city has seen “significant increases” in property tax revenues and revenue from licenses and permits. Property tax revenue rose from $21.3 million in 2023 to $23.4 million in 2024, and revenue from licenses and permits climbed from $6.4 million to $8.9 million.

Downes also highlighted the city’s investment earnings, which rose from $963,000 in fiscal 2023 to $1.7 million in fiscal 2024, which was a significant improvement over fiscal 2022, in which the city realized a loss of $250,000 in its investments.

The growth in investment revenue is due to several factors, including improving interest rates, new investment strategies and a $4 million surplus that allowed the city to invest more funds, Downes said.

"All these things combine to show a very healthy general fund budget,” Downes said. “We have grown our surplus every single year, so you have more money being invested to bring investment income.”

Lastly, Downes pointed to several other factors contributing to Vestavia Hills’ positive financial situation, including excellent home values and growth in the city’s business sector.

“If you look at the previous several years, we've had some of the best years we've ever had in commercial and residential new construction, and those properties are coming on the tax rolls," Downes said. “And we're going to see that in the next two years as well. … So it's a combination of home values, real estate values and new construction coming on board. It's paying dividends for us, and it allows us to do the things that our residents want us to do.”

Also Monday night, Vestavia Hills Mayor Ashley Curry and the City Council recognized several members of the Vestavia Hills Fire Department’s swift water rescue team deployed recently to Florida and North Carolina to assist with recovery efforts from Hurricane Debby and Hurricane Helene.

“I am honored and really thrilled to recognize some personnel that you see with us tonight," Curry said. “We want y'all to know how proud we are of you and that our city was able to respond when the call came.

"We are certainly appreciative of y'all representing our city the way that you did," Ashley added, "and I can't say enough about the importance of being prepared, being trained and ready to go if something like this happens."

Fire Department personnel deployed to Florida on Aug. 3-7 were Battalion Chief Christian Elliott, Battalion Chief Scott Hunter, Capt. Jacob Jones, firefighter/medic William Davis, firefighter/medic Pierson Paddock and firefighter Micah Cunningham.

Those deployed to North Carolina from Sept. 27 to Oct. 5 were Capt.Jacob Jones, apparatus operator Terrell Robinson, apparatus operator Jacob King, firefighter/medic Eben Leeman and firefighter/medic Lawrence Pugliese.

The next Vestavia Hills City Council meeting is scheduled for 6 p.m. on Monday, Oct. 28 at City Hall.

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Vestavia Hills ends fiscal 2024 with record general fund revenues