Last updated: September 2026
QUICK SUMMARY
As of September 2026, Hoover has a new budget. The Hoover City Council approved the fiscal 2027 budget on Monday, September 28, 2026: about $206 million in total government spending, including a $178 million general fund and $10.4 million for capital projects. For homeowners, the headlines are $3 million for street resurfacing, $1.8 million for stormwater drainage, new public safety equipment, a 2% employee raise, no new city positions until a staffing study is done, and a reserve that grows to about $74 million. Fiscal 2027 starts October 1.
KEY TAKEAWAYS
1. $206M total spending; $178M general fund (Hoover Sun). 2. Capital: $3.75M Public Safety Center roof, $3M resurfacing, $1.8M drainage, $1.65M fire engine and medical transport unit, $1.6M police vehicles, $1M body cameras and drones. 3. 31 requested positions deferred pending a staffing and pay study. 4. The city says online-sales tax rules cost it about $10M a year and calls relief a top 2027 legislative priority. 5. The city lists more than $150M in capital needs over the next three to five years.
What did Hoover approve for 2027?
According to the City of Hoover and the Hoover Sun, the council approved the budget Mayor Nick Derzis proposed, which he called “a responsible budget grounded in reality.” The main numbers:
Total spending: about $206 million, including the $178 million general fund (which the Hoover Sun reports is up 4% from 2026) and $17.7 million from special revenue accounts.
Revenue: the city says general fund revenue growth is only about 0.4%, which is why the budget leans on savings.
Savings: about $1.5 million a year from efficiency moves, roughly $2.6 million less in debt service, and about $1.2 million a year from restructuring the employee health plan and closing the employee clinic.
Reserve: $500,000 added, bringing the general fund balance to more than $74 million by September 30, 2027, which the city describes as roughly five months of operating costs.
Employees: a 2% cost-of-living adjustment. Department heads asked for 31 new positions (about $2.76 million) plus $635,000 in upgrades and overtime; those were left out while the city runs a classification and compensation study, which CFO Melinda Lopez said is targeted for completion during fiscal 2027.
What does the budget mean for Hoover homeowners?
Most of what a homeowner feels from a city budget shows up in roads, drainage, parks and response times. The 2027 capital plan, per the city and the Hoover Sun:
$3 million for street resurfacing. This is city work, separate from ALDOT projects like the I-459 resurfacing and ramp closures this fall.
$1.8 million for stormwater drainage improvements. If you are buying in a low-lying neighborhood, drainage history is worth asking about; our Alabama flood zone guide explains how to check a property.
Public safety: $3.75 million to replace the Hoover Public Safety Center roof, $1.65 million for a replacement fire engine and medical transport unit, $1.6 million for police vehicles and $1 million for police body cameras and drones.
Parks: $500,000 for improvements at city parks and sports facilities, plus funding for a public-use facility at Howard Lake.
The city also flagged a $1.8 million increase in the residential garbage contract, driven by inflation adjustments and fuel surcharges. Neither source says the budget raises city property taxes.
Thinking about buying or selling in Hoover? Our Greater Birmingham team can walk you through neighborhoods on both sides of the county line. Call or text 205-292-7142.
Why does Hoover say online sales tax is costing it $10 million?
Sales tax is the backbone of Hoover’s budget. Online purchases shipped into Alabama by remote sellers are taxed under the state’s Simplified Sellers Use Tax (SSUT), a flat 8% rate no matter where in the state the package goes. The Alabama Department of Revenue distributes the local share to cities and counties based on population, not on where the purchase was delivered. Hoover says that setup costs it about $10 million a year compared with what local sales tax would bring in. Derzis told the Hoover Sun the impact “is not sustainable” and that relief is one of the city’s highest legislative priorities for 2027.
For residents, the practical takeaway is that Hoover’s budget is tight on growth even though its reserves are healthy. The city itself lists more than $150 million in capital needs over the next three to five years across public safety, vehicles, facilities, roads and parks.
How does Hoover compare with Vestavia Hills and Homewood?
Several Birmingham-area cities adopted 2027 budgets in the last two weeks of September. Vestavia Hills adopted a $146 million budget with money for Liberty Park turf and a new fire station, and Homewood adopted a general fund of about $77 million under its new council-manager government. Hoover is the largest of the three, and like Homewood it chose to hold back on new hires this year. Mountain Brook adopted a $58 million budget the same night, with a $6 million library renovation and a 2.5% raise.
Local TWG perspective
The Williams Group at Keller Williams Realty works with buyers and sellers across Hoover, from established neighborhoods off Highway 150 to newer communities like Everlee. One thing we always explain to Hoover buyers: the city sits in both Jefferson and Shelby counties, and the county side changes your property tax and sales tax. Our Hoover Jefferson vs. Shelby County breakdown shows the millage on each side. A city budget does not change that split, but road, drainage and park spending is worth knowing when you compare neighborhoods. For a full picture of the city, see our Complete Guide to Living in Hoover.
Frequently asked questions
How big is Hoover’s 2027 budget?
About $206 million in total government spending, including a $178 million general fund, $10.4 million in the capital projects fund and $17.7 million from special revenue accounts. The council approved it on September 28, 2026.
Does Hoover’s 2027 budget add new city employees?
No. Department heads requested 31 positions, but the mayor deferred them until a staffing and compensation study is finished during fiscal 2027. Employees received a 2% cost-of-living adjustment.
How much is Hoover spending on roads and drainage in 2027?
The capital plan includes $3 million for street resurfacing and $1.8 million for stormwater drainage improvements.
How large are Hoover’s reserves?
The city says the general fund balance will exceed $74 million by September 30, 2027, about five months of operating expenses, after a $500,000 addition this year.
If you are weighing a move to Hoover, The Williams Group can help you compare neighborhoods, school zones and tax sides before you choose.
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