Kelli S. Hewett
Graham Smith
Mountain Brook mayor Graham Smith
Building for the future: Mountain Brook’s commitment to long-term planning and a strong balance sheet
One of Mountain Brook’s greatest strengths has always been our commitment to thoughtful long-term planning. For decades, city leaders, boards and committees have taken a careful, conservative approach to financial decisions. This approach allows us to deliver first-class services and amenities, as well as maintain one of the strongest balance sheets in Alabama.
Since 2000, this philosophy has guided major decisions. When it became clear that certain revenue sources, including the occupational tax and garbage fee, were no longer necessary to sustain excellent service delivery, the city eliminated them. We did so because we believe every dollar collected from residents and businesses should be justified, strategic and clearly tied to community benefit.
That same discipline defines our capital planning. Mountain Brook does not rush projects or rely heavily on borrowing. Instead, we plan years in advance, assess long-term needs and invest when the timing is right. As a result, the city has traditionally carried little to no debt — an achievement that reflects the prudence and foresight of those who have served before us.
Even with strong planning, however, realities evolve. Today, Mountain Brook faces roughly $30 million in known capital projects that support our quality of life, public safety and infrastructure. In recent years, we have paid outright for transformative investments, including improvements to the athletic complex, the Mountain Brook Junior High field and Jemison Trail, as well as multiple water mitigation projects and the construction of Fire Station No. 2. These investments have strengthened our city, but they have also drawn down our capital reserves.
Recognizing this, the city’s finance committee undertook a detailed review of long-term projections, historical trends and anticipated needs over the next 15 to 20 years. The committee ultimately recommended a measured and responsible step: increasing the local sales tax rate from 3% to 4%, with certain food items exempt from the increase.
The city council adopted this change on October 13, 2025, with an effective date of April 1, 2026. Mountain Brook’s total sales tax rate is now 10%, aligning with surrounding municipalities and marking the first local sales tax adjustment since 1994.
Just as important as the decision itself is how the revenue will be used. Under the ordinance, three-quarters of the revenue will support the general fund, helping sustain the high-quality services residents expect. One-quarter will be dedicated exclusively to capital projects, ensuring resources for major improvements and, when appropriate, responsible debt repayment.
This decision was made carefully, with Mountain Brook’s long-term health firmly in mind. Our goal is simple: preserve the financial strength built over generations and ensure we continue delivering the facilities, safety, infrastructure and quality of life our residents deserve. We are continually focused on building a future that honors our past and secures our next chapter of excellence.
