Birmingham Mayor Randall Woodfin’s proposed 2020 general operating budget will increase funding for the city pension fund and neighborhood revitalization efforts. [See the mayor’s proposal]

The budget was presented to the city council during Tuesday’s meeting. The new fiscal year begins in July.

The $451 million budget will include a $5.8 million increase in the pension contribution and a $14 million increase to neighborhood revitalization efforts.

This overall budget increase of $11 million marks a 2.4 percent increase over last year’s amended budget of $440 million. The city anticipates a $6.5 million increase in tax and license revenue.

Woodfin said he has a “moral obligation” to fund the pension, public safety and public infrastructure.

“We’re as lean as we come. There’s no room to tinker. With this budget, the only money to tinker with would come from paving or pension,” Woodfin said last week.

Meeting the city’s funding obligation for the pension had to be a priority this year, he said. Over the last few months, both Moody’s and Fitch Ratings downgraded the city’s bond rating, citing pension underfunding.

“We will not stay idle while our employees’ futures suffer,” Woodfin said at Tuesday’s meeting.

Instead of giving what Woodfin called “a $3 million blank check” to Birmingham City Schools, the new budget will provide funding for college scholarships for students and funding for a yet to be created workforce development program that aims to train students for real jobs.

The new budget will provide $14.2 million to neighborhood revitalization efforts by way of $8 million designated for street paving, $4.7 million for demolition and weed abatement, $1 million to the land bank and $300,000 toward recycling.

“We can’t ignore the moral obligations of public safety and infrastructure,” Woodfin said. “Paving has been kicked down the road for so long that we can no longer kick the can down the road.”

The budget also includes a $1 million increase in funding for economic development incentives, which Woodfin hopes can help the city attract a grocery store.

However, funding for nonprofit organizations this year is not a priority, he said.

The proposed budget gives $362,896 to nonprofits and non-government agencies. Last year’s approved budget gave $1,032,896 to such agencies.

However, city councilors will be getting more money. Councilors will also see their discretionary funds doubled to $100,000.

The Council will be hosting a public hearing regarding the FY2020 budget on Thursday, May 30 at 5:30 pm in the Council chambers — Bham City Council (@citycouncilbham) May 14, 2019

The mayor is hosting an event for residents to learn more about the budget at the CrossPlex tonight. The event starts at 6:30 p.m.

Submit your questions about the 2020 budget about Birmingham’s finances below:

This is a developing story. This story will be updated as more information becomes available.