Alabama mayor details tough financial situation: ‘We don’t have any cushion’

Tough decisions are ahead to stabilize finances, secure employees and maintain services in a struggling Birmingham-area town, the new mayor declared.

Tarrant Mayor Tracie Threadford recently presented details about the city’s financial condition, which she describes as “the elephant in the room.”

“We don’t have any cushion,” Threadford told council members at the most recent meeting.

The city of 6,000 people just north of Birmingham has about $1.57 million in the bank. According to the city’s finance office, Tarrant spends about $701,000 a month in expenses and takes in about $750,000 in revenue monthly.

The mayor said she’s already taken steps to slow spending, including eliminating the privilege of police officers parking at home. They now must park at the station. She is also reviewing the city’s cell phone policy and vehicle allowances.

“We’re looking at ways to cut and ways to save, ” Threadford told AL.com. “We’ve got to increase our business base and tax base. We’ve got to dig deep and find the best way to reduce debt and increase revenue.

For example, Threadford cited an “extremely poorly negotiated” police vehicle contract with Enterprise where the company pays for maintenance only on cars that are not used in pursuit.

As a result, the city spends $200,000 yearly to repair the vehicles used for emergencies, she said.

Threadford defeated former mayor Wayman Newton in a September runoff to become the second female mayor in the city’s history. She took office Nov. 3.

Ongoing litigation also adds to Tarrant’s expenses. The city is only partially insured.

The city’s liability insurance covers costs over $75,000, but verdicts below that amount come from city funds, she explained. Tarrant has faced a series of lawsuits stemming from political and personnel disputes at city hall.

“We’ve got litigation that is going to have to come out of our coffers,” she said.

Threadford promised a financial report will be delivered at every council meeting. The city will also increase efforts to enforce collection of business license fees.

“Yes, I made some very tough calls in the first two weeks, and this is the reason why I made those calls,” she told the council, explaining the city’s current condition.

Financial uncertainty is longstanding in Tarrant. The city has not passed an operating budget since 2022 as the council refused to approve the spending plan put forward by the former mayor.

City officials warned in September that spending must slow down, or the city will run out of money. Few details were provided at that time. But emails obtained by AL.com included a notice from Tarrant’s finance department notifying employees that all purchases must be pre-approved.

Threadford bristled at the notion of hiring a consultant to assist with finances. There’s no money to do it anyway as the city struggles to pay employees already on staff, she said.

“I’m my own consultant unless someone wants to volunteer,” Threadford said. “I’m going to have to consult myself, I’m going to have to consult the Lord. But I can’t pay a consultant. I’m going to always keep the citizens and the employees at the forefront on everything I do.”