$150 million of deferred work, and a budget three months late
The city owes more than $180 million in bonds and pension liability, identified about $150 million in deferred infrastructure needs, and did not adopt its FY2026 budget until nearly three months into the fiscal year.
Where it stands
Not fixed
Hits residents
6/10
Years covered
2023–2026
Sources
3 linked
- $245.7M
- Total future principal and interest on general obligation warrants through 2043
- $150M
- Capital needs department heads identified over three to five years
- $15M
- FY2026 capital budget actually approved
As of 2024-09
As of 2026-02
As of 2026-02
What happened
As of the fiscal 2024 audit, Hoover owed $167 million in governmental warrants plus $16.3 million in sewer warrants, with $245.7 million in total future principal and interest through 2043, on top of a $127.8 million net pension liability. Its credit ratings remain top-tier: S&P AAA and Moody’s Aa1, both from February 2023. Hoover began fiscal 2026 on October 1, 2025 with no adopted budget, operating on a carryover of the prior year’s figures, and did not adopt a new budget until December 29, 2025, amending it four more times through May 2026. In February 2026 the new administration disclosed that department heads had identified about $150 million in capital needs over three to five years, a figure the city says had never previously been compiled, and funded $15 million of it for the year. The council also replaced its hard $60 million reserve floor with a rule sweeping fund balance above 40 percent of general fund revenue into capital projects.
Timeline
Series 2023 warrants issued; $84,980,000 outstanding at fiscal 2024 year end.
City of Hoover FY2024 annual financial report (hooveralabama.gov) ↗FY2026 operating budget adopted, nearly three months into the fiscal year.
City of Hoover Resolution 8764-26 (hooveralabama.gov) ↗Council adopts a new reserve policy tying the fund balance to a percentage of revenue.
Hoover Sun (hooversun.com) ↗Council approves a $15 million FY2026 capital budget against roughly $150 million in identified needs.
Hoover Sun (hooversun.com) ↗
Who's involved
Mayor Nick Derzis
Presented the capital backlog figure in 2026
Melinda Lopez
Interim chief financial officer
Councilman Robin Schultz
Council sponsor of the reserve policy change
The other side
Mayor Derzis called the $15 million capital budget “a return to responsible, long-term planning” after years of “reactive spending,” saying the city is “not in a crisis” but faces “a call to action.” The administration says the $15 million comes from existing funds with no new tax impact.
Open questions
- Whether the fiscal 2025 audit was completed on time is not established in any source reviewed.
- No published document confirming how the $150 million total was itemized has been located.
Sources (3)
- 1City of Hoover Annual Comprehensive Financial Report, FY2024City of Hoover · Sep 30, 2024 · hooveralabama.gov
- 2Hoover City Council approves $15 million capital budget for fiscal 2026Hoover Sun · Feb 25, 2026 · hooversun.com
- 3Hoover City Council changes reserve fund policy for more flexibilityHoover Sun · Feb 11, 2026 · hooversun.com
Last checked July 29, 2026