One thing I have learned while reviewing years of City records is that Margaret’s financial story is actually a very positive one.

From 2020 through 2025, the City experienced remarkable growth.

Revenue increased, utility operations expanded, development continued and the City’s cash reserves grew to levels many municipalities would be proud of. The financial audits show a community that was growing and generating resources year after year.

In 2020, the City reported approximately $1.78 million in cash. By 2024, that figure had grown to more than $5.5 million. Over that same period, annual revenues increased significantly and both governmental and utility operations generally produced positive results.

That growth deserves recognition.

The City operates through two major financial functions: General Government and Public Works/Utilities. Together, those operations generated increasing revenues and generally positive financial results throughout this period of growth.

Financial Snapshot

2020

• Combined Revenue: $2.28 million

• Combined Operating Result: +$131,365

• Cash & Investments: Approximately $1.78 million

2021

• Combined Revenue: $2.67 million

• Combined Operating Result: +$608,249

• Cash & Investments: Approximately $2.0 million

2022

• Combined Revenue: $4.19 million

• Combined Operating Result: +$1.52 million

• Cash & Investments: Approximately $3.0 million

2023

• Combined Revenue: More than $5 million

• Audited Operations: Positive

• Cash & Investments: Approximately $4.3 million

2024

• Combined Revenue: More than $5 million

• Audited Operations: Positive

• Cash & Investments: More than $5.5 million

2025

• Combined Revenue: $6.64 million

• General Government Operations: Approximately +$1.47 million

• Cash & Reserves at Transition: Approximately $5.78 million

Looking at those numbers, two things become apparent.

First, Margaret experienced significant financial growth. Revenues increased, reserves accumulated and the City’s financial position strengthened dramatically between 2020 and 2025.

Second, that growth created new responsibilities. As revenues increased and reserves accumulated, the City’s financial systems did not always evolve at the same pace. Margaret remained a relatively small-town operation managing increasingly large-town responsibilities.

Money accumulated because revenues often exceeded expenses, development continued and utility operations performed well. What is less clear from the records is the existence of a long-term strategic plan for how those growing reserves would eventually be deployed to improve infrastructure, expand services or address future needs.

That is not unusual for rapidly growing communities. In many cases, growth happens faster than governments can adapt.

As a result, the City entered 2025 with substantial reserves, but also with opportunities to strengthen budgeting, planning, project management, capital improvement planning and financial controls.

That is where our administration’s focus has been.

Over the past several months, we have worked to improve budgeting, strengthen financial procedures, increase transparency, pursue grants and begin developing a more strategic approach to long-term planning and capital investment.

• That means creating clearer budgets.
• It means improving financial procedures and internal controls.
• It means identifying infrastructure needs before they become emergencies.
• It means pursuing grants and outside funding opportunities.
• And it means putting reserves to work strategically rather than simply measuring success by the size of a bank account.

The City is fortunate to be in a strong financial position today because of years of growth and positive operating results.

Our responsibility now is to build on that foundation by pairing financial strength with long-term planning, transparency and accountability.

Margaret’s story is not one of financial decline.

It is the story of a growing city entering its next chapter.

That brings us to where we are today.

Since taking office in November 2025, our goal has been to maintain the City’s strong financial position while beginning to address long-standing needs, prior obligations and strategic investments that will benefit residents for years to come.

When we took office in November 2025, the City had approximately $5.78 million in cash and reserves. Today, the City has approximately $4.6 million in cash on hand.

At first glance, it may appear that the City has spent more than it brought in. However, that does not tell the full story.

Over the last eight months, the City has continued to generate positive operating results while also paying for a number of one-time expenses that were not part of the original budget.

These include:

• Approximately $837,000 in holdover expenditures carried over from prior year

• Approximately $735,000 in council-approved discretionary projects, equipment purchases and capital improvements

• Approximately $100,000 in additional personnel costs resulting from council’s decision to add five employees beginning in January

When these one-time expenses are separated from normal operations, the City’s day-to-day operations remain positive.

Through May 28, 2026:

• General Fund operations generated approximately $2.28 million in revenue and produced an operating surplus of approximately $98,000.

• Public Works and Utilities generated approximately $1.78 million in revenue and produced an operating surplus of approximately $471,000.

Combined, City operations generated approximately $569,000 more than they spent.

The simple math looks like this:

Beginning Cash Balance (November 2025)               $5,780,500

Plus Operating Surplus                                                +$569,000

Less Holdover Expenditures                                        -$837,093

Less Council Approved Projects                                  -$735,225

Less Additional Staffing Costs                                     -$100,000

Expected Cash Balance                                              $4,677,182

Current Cash Balance                                                 $4,602,341

Difference                                    Approximately            $75,000

In other words, after paying prior-year obligations, funding council-approved projects, expanding staffing and continuing to reduce debt, the City’s actual cash position is within approximately $75,000 of what would be expected.

The City currently maintains approximately $4.6 million in cash across all accounts.

The City has also continued pursuing outside funding opportunities.

Recently, Margaret secured:

• $2,500 from American Village to help advertise and promote activities related to the upcoming 250th Anniversary of the signing of the Declaration of Independence.

• $45,000 from the Community Foundation of Greater Birmingham to resurface the basketball courts at Dillard Park and Wilson Park.

Councilmember Martrece Bell is currently organizing a Juneteenth Celebration for our community. Following that event, the City is planning a Fourth of July Celebration. The American Village grant will help advertise those activities, and council will soon discuss the budget for fireworks and related event expenses.

The financial records tell a story that is often very different from the public speculation.

The audits show that previous 5 years in Margaret were a period of significant growth and the City accumulated substantial reserves. Those reserves were not created through a single project or a single decision. They were the result of years of growth, increasing revenues and generally positive operating performance.

Today, the responsibility of this administration is not simply to preserve a number on a bank statement. It is to ensure those resources are managed responsibly, invested strategically and used in ways that strengthen the City for the future.

That means maintaining strong reserves while also addressing infrastructure needs, paying obligations, improving services, pursuing grants and investing in projects that improve quality of life for residents.

The City continues to operate from a position of financial strength. Operations remain positive. Reserves remain substantial. Debt obligations continue to decline. New grants and funding opportunities continue to be secured.

The goal is not to spend every dollar, nor is it to leave every dollar untouched. The goal is to strike the right balance between preserving financial stability and making thoughtful investments that move Margaret forward.

The foundation built over the last several years remains strong. Our focus now is making sure that financial strength is matched with planning, accountability and long-term vision so that the next chapter of Margaret’s growth is even stronger than the last.