City of Montgomery Affirms Strong Financial Health for Proposed $375 Million Bond Initiative

Montgomery, AL - The City of Montgomery today announced that it is in exceptionally strong financial standing and fully prepared to responsibly support the proposed $375 million bond. This investment marks a bold step toward accelerating growth, expanding opportunity, and delivering long-term improvements that will benefit Montgomery residents for generations.

"This is a moment defined by optimism and momentum," said Mayor Steven L. Reed. "Montgomery is prepared, Montgomery is ready, and Montgomery is financially positioned to move confidently into its future."

The City's comprehensive fiscal review underscores four key strengths that demonstrate Montgomery's ability to comfortably support this bond while continuing to provide excellent public services:

1. Revenues Are Growing Every Year
Montgomery's General Fund revenues are rising at a steady and predictable pace - about 3% annually. This upward trend strengthens the City's budget year over year, creating a dependable, expanding financial foundation for future investment.

2. The City Has Significantly More Revenue Than Needed to Cover New Debt
For every dollar required to pay the annual costs of the new bond, the City currently brings in roughly 16 to 26 times that amount in revenue. This exceptionally high coverage ratio reflects affordability and ensures Montgomery can easily meet repayment obligations without strain.

3. Overall Debt Levels Remain Well Within Healthy Ranges
Even when all existing bond payments and obligations are combined, Montgomery still maintains nearly nine times the revenue needed to cover them. This strong margin illustrates disciplined long-term financial management and a stable outlook for the years ahead.

4. Debt Payments Will Decrease Over Time, Strengthening Future Budgets
Beginning in FY2032, total debt service will naturally decline as older obligations mature. For Montgomery residents, this means stronger financial flexibility in future budgets while still retaining the ability to invest in projects that improve neighborhoods, infrastructure, and quality of life.

In addition to these strengths, Montgomery continues to benefit from major new revenue sources - such as the newly constructed convention center, projected to generate approximately $70 million annually. This recurring income further boosts the City's ability

to maintain fiscal stability while expanding public amenities, infrastructure, and economic development.

The $375 million bond will allow Montgomery to invest in community assets, modernize facilities, enhance transportation and safety, and stimulate regional growth. The City will continue employing responsible financial strategies - including refinancing options, strategic planning, and revenue-aligned budgeting - to secure long-term affordability and protect taxpayer interests.

Montgomery is entering a new chapter grounded in confidence, stability, and opportunity. This bond represents not just an investment in infrastructure, but an investment in people - the residents, families, and communities who make Montgomery strong.

"Our future is bright," Mayor Reed said. "This bond is part of a larger vision of building a Montgomery that thrives today, tomorrow, and for generations to come."