CULLMAN, Ala. – The Cullman City Council on Monday passed a fiscal year 2026 budget totaling $194,634,790, up over $6 million from last year but behind peak years in 2024 ($207,986,624) and 2023 ($195,819,380). Highlights of the budget as reported in the meeting include:
• General Fund (the City’s primary operating fund) increased to $59,186,795 (the largest ever for that particular fund) based on actual revenue collected in 2025
• General Fund budget increased by 6.6% over 2025
• 4% pay increase and annual pay supplement of $800 in November for full-time employees
• Employee Benefits
o City absorbed the 4.75% increase to health and dental insurance for full-time City employees.
o City covered the 9.25% increase to the retirement match for full-time City employees
o City renewed Air Evac plan for employees and their families and covered the increase.
o CWAC memberships for City employees and continue to provide a discount for their families
o City continues providing cancer insurance for firefighters
• Cullman City Schools to receive a projected total of $12.05 million in local funding
• Administration
o New or updated software for Administration, Risk Management, IT and Human Resources
• Public Works
o City Garage lower shop renovation
o City traffic study
o Application made for $30 million to widen U.S. Highway 278 at St. Bernard Bridge
o Street paving budget – $2.135 million
o Downtown Streetscape – $1 million, including $800K TAP grant
o CDBG Neighborhood Project – $1 million, including $500K CDBG grant
o Rosemont Avenue and Dripping Springs Northwest improvements
o Traffic equipment upgrades
o No rate increase for residential sanitation customers in the city of Cullman
o Two new garbage trucks and other sanitation equipment
o Adding one more sanitation driver
• Public Safety
o Seven new police patrol units
o Adding one more investigator
o Radio system upgrade and other equipment
o New pumper truck, rescue truck, command truck and tools for Fire Department
o Training facility at Fire Station No. 3
o Dispatch/communications system upgrades
• Tourism
o $7.5 million to develop Lazy River at the water park
o $1 million to renovate East Side (Lions Club) Park
o $1 million to renovate Community Theater facility
o City Tennis Courts improvements
o Donald E. Green Senior Center improvements
o Airport apron, hanger, taxi lane construction and improvements, funded mostly through grants
• Utilities Committee
o No rate increase for residential water and sewer customers in the city of Cullman
o 30-inch water line replacement – $12 million SRF funded
o Mann Basin sewer improvements – $4.5 million SRF funded
o Four new service trucks and three new crew trucks
o Five new crew trucks and new mowing equipment for the right-of-way crew
o Digester rehabilitation, new pump and chopper pump at the Wastewater Treatment Plant
The City’s main daily operating costs are paid through the General Fund, while a number of other designated funds cover specific expenses, such as multiple gas tax funds that pay for area road work, an Industrial Purpose Fund that provided capital outlay for land, a Park and Recreation Construction fund for projects like the OmniPlex and park renovations and a Property and Sales Tax fund that goes to local education. This list is not complete.
