Pelham City Council Meeting – December 15, 2025

The Pelham City Council met at 7:00 p.m. on December 15, 2025, at Pelham City Hall. The council unanimously approved the consent agenda, heard the city manager's 2025 State of the City report, and voted to join Simplified Sellers Use Tax (SSUT) litigation and to approve an ABC license application. One resident offered public comment. No public hearings were scheduled.

Consent Calendar

• Approved the December 15, 2025 council agenda and the December 1, 2025 regular meeting minutes.
• Authorized a non-exclusive parking license agreement in the Pelham Entertainment District (Resolution 2025-12-15-01).
• Authorized Human Resources to provide the applicable pay plan step for an employee returning after an on-duty injury (Resolution 2025-12-15-02).
• Accepted a proposal and agreement with Professional Turfgrass Services for the Ballantrae Golf Club Driving Range Tee Box Renovations, budgeted for FY2026 (Resolution 2025-12-15-03).
• Affirmed the mayor's appointments for Municipal Judge, Municipal Prosecutor, and Municipal Public Defender (Resolutions 2025-12-15-04 through -06).
• Accepted a proposal from Jim House & Associates, Inc. to replace two pumps at Sewer Lift Station T, budgeted for FY2026 (Resolution 2025-12-15-07).
• The consent agenda passed unanimously by roll-call vote, with Council President Leverett and Councilmembers Power, Towns, Snowden, and Harris voting yes.

Public Comments & Testimony

• Russell Platt, 2233 Richmond Lane, thanked the council for taking action on the SSUT issue, noting it was an issue he had campaigned on.

Mayor's Report

• Mayor Walsh wished everyone a Merry Christmas and praised the Christmas parade, including the new route suggested by the police chief.
• In response to Tom Robinson's earlier question, the mayor said the flyover project is about $55 million, with the city responsible for about $10 million. The city has budgeted and set aside over $1 million; the mayor said he would provide the exact amount. The project is currently frozen by the federal government, and the city is waiting for it to be unfrozen.

City Manager's 2025 State of the City Report

• City Manager Gretchen DeFonte presented a year-in-review emphasizing financial stewardship, recreation, public safety, and infrastructure.
• Financial highlights: balanced budgets each year since 2017, average year-over-year revenue growth of 4%, expenditure growth of 3%, no audit findings, and 2025 figures noted as unaudited. Business license revenue is up, building permit revenue has averaged 30% year-over-year growth, and sales tax was down very slightly from 2024 to 2025.
• The city has shifted from paying for capital projects out of operating cash to proactively saving for them. Tax audits recovered approximately $50,000 in roughly one-third of a year, and the city saw $650,000 in new first-time revenue at Ballantrae Golf Club and the Civic Complex.
• Ballantrae Golf Club reported a 95% increase in gross revenue since 2010, record revenues, and an operating profit over $400,000. Since 2019, rounds played increased 66%.
• Recreation additions since 2018 included beach volleyball, outdoor basketball, a splash pad, senior center pickleball, a playground, disc golf, soccer, and a roller sports rink. Recreation center membership is up nearly 200% since 2022, and special event attendance rose 74% despite four rainouts.
• Senior center membership is up 160% since the pandemic, and 12,308 tennis lessons were provided in 2025, a 6% increase over the last two years.
• The Civic Complex and Ice Arena reported 119,000 unique visitors in 2025, an almost 80% increase, and its first-ever net operating profit over $100,000. Total visits rose from 201,000 in 2021 to 302,000 in 2025.
• The Pelham Public Library was named family favorite library branch by Birmingham Parent Magazine.
• City-owned recreation, arts, and culture amenities drew over 1.1 million visits in 2025, about 21% more than Oak Mountain State Park's 936,700 visits.
• EMS transport completed its first full year with 1,896 EMS responses and over 1,000 transports through September 8, 2025, an average response time of just over eight minutes, and a net gain of 16 mutual aid transports. The department responded to 4,188 calls in FY2025.
• Police hiring was streamlined from about 60 days to under three days; promotion assessment centers were introduced; a master sergeant rank was created; a virtual reality firearm simulator was approved; and planning began for a 2026 youth police academy. A second motor unit and a drug detection canine were added.
• Public works and infrastructure: 10,802 requests were entered in the 311 system in FY2025, with a 93% closure rate; 87% of requests related to waste collection. Water leaks dropped 72% over the last decade, monthly water loss fell 31% over two years, saving about $250,000 annually and avoiding a $240,000 plant capacity upgrade. The water infrastructure replacement timeline was reduced from 21 years to about 10.5 years.
• Traffic improvements: AI traffic cameras were installed at major intersections, with a 10% improvement in vehicles arriving on green at one corridor and I-65 since May 2024, a northbound I-65 ramp wait time cut from 26 to 16 seconds, and a 48% improvement in arrival on green on Chandalar and US 31 since May 2025.
• The 2025 paving plan was completed ahead of schedule and under budget, allowing 10 additional streets to be paved. IT upgrades included a citywide fiber optic WAN, redundant internet, upgraded Civic Complex Wi-Fi, and a tenfold increase in backup and security systems.
• Upcoming projects include a greenway trail section, Highway 31 lighting, Highway 261 utility work, and master developer selection for the former Live Nation property.
• The city has 260 full-time general fund employees, 54 employees in other funds, about 15 vacancies, and about 25 part-time/seasonal positions. DeFonte highlighted employee awards, including FBI LETA trilogy awards, World Police and Fire Games medals, and all four wastewater treatment staff earning Level IV licenses.

Discussion Items

• Resolution 2025-12-15-08 (SSUT): City staff explained that the SSUT was originally designed for out-of-state retailers but now also affects local delivery transactions. Data from Tuscaloosa's initiative showed 76% of Pelham households purchased online from Amazon in the last six months and 28% from Walmart. The SSUT rate is 8%, with local governments receiving 4% (counties 1.6%, municipalities 2.4%), compared to Pelham's traditional 10% sales tax. The estimated FY2025 loss to Pelham was about $5.5 million, offset by about $2.2 million in SSUT distributions, leaving a net estimated loss of $3.3 million; education tax losses were estimated at $1.4 million. The resolution authorized the City Attorney to file on behalf of Pelham in the Tuscaloosa-led litigation. The council approved it unanimously.
• Resolution 2025-12-15-09 (ABC license): The council considered an ABC license application for Encore Franchises, LLC, operating as Gallops Liquors and Spirits, at 3569 Pelham Parkway, Suite 10, for Lounge Retail Liquor – Class II (Package) and Tobacco Only. The council approved it unanimously.

Council Comments

• Council members thanked the city manager and staff, praised the Christmas parade and community events, recognized Pelham High School athletics, and highlighted the city's strong financial position and debt-free approach to recently completed capital projects.

Key Outcomes

• Consent agenda approved unanimously.
• Resolution 2025-12-15-08 approved unanimously, authorizing the City Attorney to join SSUT litigation.
• Resolution 2025-12-15-09 approved unanimously, approving the ABC license for Gallops Liquors and Spirits.
• Public announcement: City offices will be closed December 24-25, 2025, and January 1, 2026.
• The meeting adjourned.