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Mobile City Council adopts ordinance establishing 16.66% general fund reserve; civic center financing and questions remain

January 03, 2025 | Mobile City, Mobile County, Alabama


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Mobile City Council adopts ordinance establishing 16.66% general fund reserve; civic center financing and questions remain
The Mobile City Council on Jan. 2 adopted Ordinance 01066, amending the city code to establish a general fund reserve equal to 16.66% of the budgeted general fund. The ordinance passed after a brief motion, with no roll-call tally recorded on the meeting transcript.

The measure codifies an existing administrative practice aimed at maintaining fiscal stability and preparing the city to take on long-term debt for the Civic Center project. “The city has maintained a an administrative policy requiring 16.6 6% of the budgeted general fund to remain in reserves,” said Councilman David Romes, District 4, during remarks after the vote. “And we made that a part of our law today.”

The ordinance drew public questions about how the new reserve relates to other fund balances. Reggie Hill, a resident who spoke during public comment, asked, “What is the general fund reserves? I know that we have a unassigned fund balance,” and pressed for clarity on whether other reserve-style balances exist and how they are being used. The transcript shows Hill requested detail on unassigned and unallocated balances and raised concerns about possible reallocation of budgeted general fund amounts.

Council members also discussed the Civic Center financing during the meeting and signaled follow-up work. Councilman Daves, District 5, announced a meeting of the council's finance committee for an update on the civic center construction project and associated financing; the meeting was scheduled for Tuesday at 1 p.m. in the council conference room on the ninth floor of the south tower. Romes and other members said the reserve ordinance was intended to help the city remain “on solid financial footing” while the administration moves forward with Civic Center plans.

Transcript entries show a reimbursement resolution for Civic Center financing (resolution 041250) was introduced earlier in the agenda and held over for further review; no final vote on that specific resolution is recorded in the segments tied to the reserve ordinance discussion. The council referred several finance-related resolutions to committee and laid over other items for one week under council rules.

Formal action recorded in the meeting transcript: adoption of Ordinance 01066 to establish general fund reserves. Questions raised by public comment and multiple council members about the relationship between the new reserve, the unassigned fund balance, and planned Civic Center bond reimbursements were left for staff or committee follow-up.

The council made no other binding changes to Civic Center financing terms during the Jan. 2 session; members directed staff and committee follow-up that could produce additional action at a subsequent meeting.

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Scribe from Workplace AI
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