Mobile Mayor Spiro Cheriogotis presented his first budget proposal on Thursday, a $404 million spending plan for the fiscal year beginning Oct. 1 that builds on initiatives from his predecessor while advancing several of his own campaign priorities.
The proposal marks a 13.9 percent decrease from this year’s $416 million budget, a drop driven largely by an anticipated $89.75 million reduction in interest income from bonds and investments. Despite the smaller top-line number, the plan calls for continued investment in public safety, the under-construction Regions Arena, the newly created Stormwater Management Department, and a reimagined citywide transit system, along with raises for city employees.
“We do not have to choose between protecting that foundation and thinking big,” Cheriogotis wrote in his budget message to the Mobile City Council. “A great city must do both. Our responsibility now is to build on it wisely, ensuring that Mobile’s progress is reflected not only in the transformational projects we all love and celebrate, but also in the everyday experiences of the people who call Mobile home.”
Reserves and Fiscal Priorities
Cheriogotis reaffirmed former Mayor Sandy Stimpson’s longstanding practice of maintaining a two-month financial reserve to protect against emergencies such as hurricanes. This year, that reserve totals $67 million. Beyond serving as a financial cushion, city officials say the reserve helps preserve Mobile’s strong bond and credit ratings. The mayor’s budget message notes the city remains on track to retire older debt by 2030.
Public Safety and Transit
Public safety spending would total $135 million under the proposal, roughly flat compared with the current year. However, Cheriogotis said the budget allows the city to add law enforcement personnel by consolidating vehicle expenditures elsewhere in the budget.
The plan also sets aside $14.9 million to support Second Line Transit, the city’s rebranded bus system set to formally launch later this year. That funding covers the city’s contract with Via Transportation to operate the system, pension costs for transit employees, and the purchase of trolley-style buses, one of the mayor’s stated priorities.
City employees would see a merit pay raise of 2.5 percent beginning in April under the proposal.
Africatown and Community Investment
The budget includes $757,345 for the Africatown Welcome Center, which is expected to open in the coming months. The funding is a new expense for the city. Cheriogotis described the investment as part of a “broader commitment to preserve, honor, and share Africatown’s extraordinary significance to Mobile and to the nation.”
The proposal also places new emphasis on pursuing outside grants to fund what the mayor called “smarter investments” in services ranging from animal control to stormwater drainage to park maintenance.
Capital Projects and Economic Development
Cheriogotis pointed to the Mobile Alabama Cruise Terminal as an example of a past investment that has boosted the local economy, and he said he expects Regions Arena and Mobile International Airport to have a similar impact once they open.
The proposed fiscal year 2027 capital budget totals roughly $43 million, or $77 million when debt service is factored in. Similar funding has previously supported projects such as Brookley by the Bay, Langan Park, the Three Mile Creek Greenway Trail, and renovations to St. Louis and Broad streets.
“These priorities – and others that follow – will be evaluated, not simply by what we can build, but by what we can sustain,” Cheriogotis wrote. “Costs, funding, operational requirements, and long-term public benefit must all be considered from the beginning.”
The Mobile City Council will now review the proposal ahead of the new fiscal year, which begins Oct. 1.