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Selma dealing with unsure finances ahead of looming budget deadline

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  Published in Business and Finance on Sunday, September 28th 2025 at 18:17 GMT by WSFA
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Selma Faces Financial Uncertainty as Budget Deadline Looms

The city of Selma is confronting a steep fiscal cliff as the deadline for the 2025 municipal budget approaches. In a comprehensive report released by WSFA on September 28, 2025, officials outlined a series of looming cash‑flow problems that could force drastic cuts to public services, jeopardize city infrastructure projects, and erode community confidence in local governance. The article, which draws on interviews with city officials, data from the city’s finance office, and footage from the most recent city council meeting, paints a stark picture of a municipality trying to balance an uncertain economy with an increasingly demanding budget.

The Core of the Problem: A $2.4 Million Deficit

At the heart of Selma’s financial predicament is a projected deficit of approximately $2.4 million for the 2025 fiscal year. City Finance Director Maria Sanchez explained that the shortfall primarily stems from a combination of declining property‑tax receipts and a sharp drop in the city’s economic activity following the post‑COVID recovery slowdown. “The pandemic left a legacy of lower business activity and a slowdown in new residential development that has yet to fully recover,” Sanchez said. “Without a corresponding increase in property taxes or a boost in other revenue streams, we’re staring at a deficit that can’t be absorbed by the existing budget.”

A link in the WSFA article directs readers to the city’s latest quarterly financial statement, where the numbers are laid out in detail. According to that statement, property‑tax revenue fell by 12% year‑over‑year, and commercial licensing fees—an important source of revenue for the city’s public works and recreation departments—declined by 8%. On the debt side, Selma is scheduled to make several major payments in 2025, including a $1.1 million loan repayment tied to the city’s water‑system upgrade, and a $500,000 payment due on a bond issued last year to fund a new community center.

The Budget Deadline and Potential Cuts

Selma’s city council will vote on the budget on October 10, just one week after the deadline for the 2025 budget cycle. The WSFA report cites council member Thomas Reed, who warned that “if we don’t secure additional funding, we may have to cut services such as street‑light maintenance, the summer recreation program, and the ongoing maintenance of the historic downtown area.” Reed emphasized that the city’s ability to keep its public‑works crews on schedule is directly tied to the budget’s balance.

In an interview with the WSFA’s senior reporter, city council chairperson Lisa Johnson added a more measured tone: “We’re looking at a balanced approach—some modest cuts, but also looking for new revenue mechanisms.” Johnson referred to the city’s ongoing negotiations with the state of Alabama for a new grant program aimed at supporting small‑town infrastructure projects, which could provide a much-needed infusion of $300,000 if approved.

The article also links to a short video of the council’s budget hearing that aired on the local station’s website. The video shows the council members debating whether to allocate an additional $150,000 to emergency repairs on the city’s aging water main versus preserving current funding for the recreation department. The footage provides a behind‑the‑scenes look at the contentious nature of the budgetary process and the real‑world consequences of fiscal decisions for everyday residents.

Impact on the Community

The article follows up with stories from two local residents. In a brief interview with a Selma‑based florist, Maria Lopez, the florist expressed concern that “budget cuts could delay the maintenance of the public parks, which we rely on for customers and community events.” Another segment features a local school administrator, who explained how potential funding cuts could reduce school bus routes and limit extracurricular activities.

Linking further to a separate piece on the WSFA website, the original article points to an earlier coverage of the city’s 2024 budget crisis. That piece highlighted a $1.2 million deficit that forced the city to suspend non‑essential services and lay off two city employees. That context underscores the stakes for the current budget: failing to secure a balanced budget could repeat a cycle of layoffs and service reductions.

Moving Forward

Despite the bleak financial landscape, city officials are working on a multi‑pronged strategy. Sanchez highlighted that the city is exploring a mix of cost‑saving measures, including a renegotiation of long‑term contracts with vendors and a potential modest property‑tax increase of 2%. Meanwhile, the city’s economic development office is pursuing new business incentives that could boost commercial activity and, in turn, increase licensing revenue.

In the WSFA’s conclusion, city council member Reed summed up the mood: “Selma has weathered storms before, and we will come out of this with stronger community ties and a clearer financial path.” The article urges residents to stay informed and engaged by attending upcoming council meetings and participating in public comment periods.

With the budget deadline only a few weeks away, Selma’s leadership faces a challenging task of securing enough revenue to cover its obligations while keeping essential services intact. The WSFA’s coverage provides a thorough, data‑driven snapshot of the crisis, and the linked resources give readers the opportunity to dive deeper into the numbers and community stories that shape the city’s financial future.