As the City of Helena prepares for upcoming elections and confronts serious budgetary challenges, city officials are weighing a proposed 1-cent sales tax increase that would raise the rate from 9% to 10%.
The measure is intended to generate approximately $2 million annually to support public services and infrastructure investments, according to reporting by WBRC.
Councilman Chris Willis introduced the proposal during a recent City Council work session. He and other city leaders have framed the increase as a way to help the city manage its rapid growth and fund essential services.
Helena, one of the fastest-growing municipalities in Shelby County, currently operates with fewer resources than many neighboring communities.
City leaders plan to hold at least one public hearing, with a second possible, to allow residents and business owners to weigh in on the proposed tax hike. The hearings are expected to begin in June, and a final vote could take place by the fall.
The proposal comes after an audit revealed that Helena exceeded its budget by over $11 million in the last fiscal year.
AL.com reported that the city ended the year with a significant budget deficit and overspending in several departments, particularly related to large-scale capital projects such as a new city hall and sports complex.
Sungho Park, a University of Alabama assistant professor of public policy and administration, conducted an analysis of the city’s finances for AL.com.
He found that Helena’s debt ratio was 0.896 — well above the widely accepted threshold of 0.03 — and identified the city’s long-term liabilities as high-risk. Park also noted that Helena’s per-resident cost for the new city hall was significantly higher than national averages for similar projects.
City leaders have acknowledged the audit findings but have attributed the deficit in part to outdated budget practices.
Mayor Brian Puckett, who has announced he will not seek re-election, previously stated that the audit was a snapshot of city finances prior to a bond sale that replenished reserve funds. However, concerns remain about the long-term sustainability of the city’s financial plan and whether additional revenue alone will be sufficient without structural changes.
The city’s political landscape is also shifting. Municipal elections are scheduled for August, and most current council members, including the mayor, are not seeking re-election. Only Council President Alice Lobell and Councilman Andy Healy have announced plans to run.
The new city council will ultimately decide how to allocate any new revenue generated by the proposed tax.
Calls for transparency and fiscal responsibility have grown louder in recent months, as residents question the decision-making behind major expenditures. While the tax increase could provide some budget relief, unresolved concerns about oversight and financial governance continue to shape the public conversation.
City officials say the upcoming hearings are a chance for the community to be heard before any final decisions are made. If the tax increase is approved, it could take effect as early as this fall.
Sherri Blevins is a writer for Mountain Valley News and a staff writer for Yellowhammer News. You may contact her at [email protected].
