Last updated: October 2026 · By Byron Bennett, The Williams Group at Keller Williams Realty
QUICK SUMMARY
As of October 2026, Mountain Brook is operating under a new budget. The Mountain Brook City Council approved a $58 million budget for fiscal 2027 on Monday, September 28, 2026, covering October 1, 2026 through September 30, 2027. For homeowners, the headlines are a $20 million capital plan that includes a $6 million O’Neal Library renovation, $2.5 million for sidewalks, $1.1 million for street resurfacing and a replacement fire engine, a 2.5% raise for city employees, and a projected $23.2 million general fund reserve. Real estate taxes are the city’s largest revenue source, at about 39% of revenue.
KEY TAKEAWAYS
1. Budget revenue of $59.3 million against about $49 million in expenses, with $10 million transferred to capital and debt service and a surplus of about $570,000. 2. Capital highlights: library ($6M, $4M of it from the Mountain Brook Library Foundation), sidewalks ($2.5M, $1.9M federal grants), infrastructure ($1.6M, 80% federal), high school sewer upgrades ($1.2M), Public Works equipment, Fire Engine No. 1 and resurfacing ($1.1M each). 3. Real estate taxes bring the city about $23 million; sales tax about $15.6 million. 4. The reserve is projected at about 173 days of expenses, close to the city’s 180-day target. 5. No change to property tax rates was reported with the 2027 budget.
What is in Mountain Brook’s 2027 budget?
According to Village Living’s coverage of the September 28 meeting, the council adopted a budget with about $59.3 million in revenue and $58 million in total spending: roughly $49 million in operating expenses plus about $10 million moved to capital projects and debt service. That leaves a projected surplus of about $570,000.
Councilman Lloyd Shelton, who has served on the city’s Finance Committee since 2001, said that if the city hits budget, the general fund reserve should land at about $23.2 million, or 173 days of expenses against a 180-day target. “It’s a solid budget,” he said. City employees receive a 2.5% raise.
What projects will Mountain Brook homeowners see?
The capital side is where residents feel a budget day to day. The 2027 plan, as reported by Village Living:
O’Neal Library renovation: $6 million, with $4 million coming from the Mountain Brook Library Foundation.
Sidewalks: $2.5 million, with $1.9 million covered by federal grants. The council also approved $30,720 to design a pedestrian crosswalk project that is 80% federally reimbursable.
Streets: $1.1 million for resurfacing in the budget, plus a $904,300 resurfacing contract with Dunn Construction and $491,500 to Highway Management Systems for restriping.
Infrastructure: $1.6 million, about 80% federally funded.
Public safety and public works: $1.1 million to replace Fire Engine No. 1 and $1.1 million for Public Works equipment.
Mountain Brook High School sewer upgrades: $1.2 million, with $600,000 from Mountain Brook Schools.
Mayor Graham Smith also said the city will begin maintaining the landscaping at the roundabout near Mountain Brook Village, which sits just inside Birmingham, and that an anonymous donor plans to add a sculpture there in time.
Thinking about buying or selling in Mountain Brook? Our Greater Birmingham team can walk you through neighborhoods, taxes and pricing. Call or text 205-292-7142.
Why do property taxes matter more to Mountain Brook than to other cities?
Most Alabama cities run mainly on sales tax. Mountain Brook does not. Real estate taxes bring in about $23 million, or 39% of revenue, compared with about $15.6 million (26%) from sales tax. Shelton called Mountain Brook “the only city in the state whose No. 1 source of revenue is real estate taxes.”
For homeowners, that ties the city’s finances closely to property values. Mountain Brook’s total property tax rate is 109 mills under the Alabama Department of Revenue’s millage schedule, the highest municipal rate in Alabama, after voters approved a 10-mill school tax increase in 2019. Alabama assesses homes at 10% of value, so a rough estimate is:
| Home value | Estimated annual property tax (homestead) | Per month |
|---|---|---|
| $400,000 | about $4,300 | about $359 |
| $916,300 (Census ACS median home value, 2020–2024) | about $9,900 | about $830 |
| $1,500,000 | about $16,300 | about $1,360 |
Our arithmetic: value × 10% assessment × 109 mills, minus the standard state ($4,000 assessed) and county ($2,000 assessed) homestead exemptions. Estimates only; your bill depends on the assessor’s appraised value, exemptions and any storm-water fee. Homeowners 65 and older may qualify for additional exemptions.
Homestead exemptions are not automatic and do not transfer from the seller; our Alabama homestead exemption guide explains how to file in Jefferson County.
How does Mountain Brook’s budget compare with Hoover, Vestavia Hills and Homewood?
Four Over the Mountain cities adopted 2027 budgets in late September. Hoover approved about $206 million with a 2% raise and no new positions; Vestavia Hills adopted $146 million with a large Liberty Park capital package; and Homewood adopted a general fund of about $77 million with a 1% raise. Mountain Brook is the smallest of the four by spending, and by Shelton’s account the only one whose biggest revenue source is property tax rather than sales tax.
Local TWG perspective
The Williams Group at Keller Williams Realty works with buyers and sellers in Mountain Brook and across the Over the Mountain suburbs. When buyers compare Mountain Brook with Homewood or Vestavia Hills, property tax is the line item that surprises them most, so we build it into the monthly payment from the first conversation. Using the same estimate method, a $400,000 home runs about $4,300 a year in Mountain Brook versus roughly $2,950 in Homewood and $3,650 on the Jefferson County side of Vestavia Hills. For sellers, the budget is a useful talking point: sidewalks, resurfacing and the library renovation are visible investments buyers ask about. If you are thinking about a project at home, our guide to Mountain Brook’s home business rules and our Brookwood Village redevelopment update cover two other questions we hear often. For the full picture, see our Complete Guide to Living in Mountain Brook.
Frequently asked questions
How big is Mountain Brook’s 2027 budget?
About $58 million in total spending, with about $59.3 million in projected revenue and a surplus of roughly $570,000. The City Council approved it on September 28, 2026, for the fiscal year that began October 1, 2026.
Did Mountain Brook raise property taxes in its 2027 budget?
No property tax rate change was reported with the 2027 budget. Mountain Brook’s total rate remains 109 mills, the highest municipal rate in Alabama, following a 10-mill school increase approved by voters in 2019.
What is Mountain Brook spending on the O’Neal Library?
The 2027 capital plan includes $6 million for the O’Neal Library renovation, $4 million of which comes from the Mountain Brook Library Foundation.
Where does Mountain Brook get most of its money?
Real estate taxes, about $23 million or 39% of revenue, followed by sales tax at about $15.6 million or 26%. A city councilman described Mountain Brook as the only city in Alabama whose largest revenue source is real estate taxes.
If you are weighing a move to Mountain Brook, The Williams Group can help you compare neighborhoods and true monthly costs before you choose.
Buying or selling in Mountain Brook?
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Sources
- Village Living: Mountain Brook council passes $58 million budget for 2027 (Sept. 29, 2026)
- Village Living: Mountain Brook City Council to consider $58 million budget for 2027 (Sept. 26, 2026)
- Village Living: Mountain Brook residents say yes to tax hike (2019)
- Alabama Department of Revenue: Property tax