The Hoover City Council approved a $15 million Fiscal Year 2026 Capital Budget on Monday night (Feb. 23, 2026), marking a significant step toward restoring long-range financial planning and strengthening Hoover’s infrastructure, public safety assets, and public facilities.
The approved budget represents the first installment toward addressing a much larger list of identified infrastructure needs throughout the city.
The newly adopted plan reflects a comprehensive, multi-year capital strategy developed after Mayor Nick Derzis directed each city department to submit detailed three- to five-year capital needs assessments. The process marks the first time in many years that Hoover has operated under a structured, forward-looking capital improvement framework.
“This budget represents a return to responsible, long-term planning,” Mayor Derzis said. “For too long, Hoover has addressed capital needs by reacting to problems instead of preparing for them. Last night, we took an important step in changing the way we do business. But we have a long way to go until we are where we need to be.”
Identifying Long-Term Needs
Departmental submissions identified approximately $150 million in capital needs over the next five years, illustrating the scale of infrastructure, facility, and equipment investments facing the city.
That total equals about 80 percent of the city’s annual general fund operating budget and is roughly twice the size of Hoover’s $74 million general fund reserve balance. The identified needs total does not include potential additional costs associated with the I-459 Exit 9 interstate project, which is scheduled for bid in 2026.
“These requests are not wish list items or projects we would simply like to do,” Derzis said. “These are real capital needs with real costs that we must address in order to maintain our current facilities, replace aging equipment, and proactively maintain the infrastructure that our residents rely on every day.”
Priority Projects
Priority projects identified in the plan include:
- Repairing and replacing aging facilities, including roof replacements across multiple city buildings
- Stormwater infrastructure improvements
- Road resurfacing and reconstruction
- Improvements to athletic fields, public parks, and public-use facilities
- Upgrades to public safety communications and dispatch systems
- Replacement of aging fleet vehicles, including police patrol units, fire vehicles, and new fire apparatus
Addressing Deferred Maintenance
Mayor Derzis emphasized that years of deferred maintenance have contributed to rising costs and emergency repairs, a trend the new capital plan is designed to reverse.
“When assets are pushed beyond the point of failure, taxpayers ultimately pay more,” Derzis said. “Planned investment is always more efficient than emergency replacement, and it prevents unnecessary disruptions to the services our residents depend on.”
Derzis stressed that the adoption of the capital budget should be viewed as a proactive decision rather than a response to crisis.
“The City of Hoover is not in a crisis, but this should absolutely be viewed as a call to action,” he said. “The real risk would be ignoring the financial realities in front of us. Responsible cities don’t wait for failure; they plan for durability.”
Mayor Derzis added that investing now helps avoid significantly higher emergency repair costs in the future and allows Hoover to prioritize projects strategically while maintaining public assets at the high standard residents expect.
“We have a long way to go to meet these needs,” Derzis said. “We are investing today so Hoover is stronger, safer, and more resilient tomorrow.”