Montgomery City Council approves budget that includes pay raises for police, city employees

The Montgomery City Council has approved a fiscal 2025 budget that includes pay raises for sworn police officers and all other city employees.

The budget that passed Tuesday night totaled $331,625,628.

The budget includes a 15% pay raise for all Montgomery Police Department sworn officers and a 5% cost-of-living adjustment for all other city employees.

Police, fire department, sanitation workers and others saw pay increases in the 2022 budget.

“As I have stated before, I am truly thankful for the tenacity of our employees, citywide, to ensure that services are provided to the citizens of Montgomery uninterrupted,” Montgomery Mayor Steven Reed said. “Being competitive with salaries will allow the city to continue its efforts of hiring and retaining qualified employees to best serve our citizens.”

The overall budget figure is a 6.5% increase from the 2024 budget.

This is the first cost-of-living adjustment provided to city employees since 2012. The proposed budget also includes the accompanying fringe benefits such as FICA/Medicare, retirement and health insurance expenditures.

The increases were made possible by stable growth for the City of Montgomery in key revenue sources, including sales and use taxes, ad valorem taxes and business licenses, as well as savings from a reduction in long-term debt, which now stands at $26 million, according to a news release from the city.

Additional strategic efforts, such as securing over $50 million in grant funding and a $5.15 million inter-fund transfer, have further strengthened the city’s financial position under Mayor Reed.