Flood Mitigation Account
One-Half Cent Flood Mitigation Account
The One-Half Cent Sales Tax Fund (Fund 120) was established by the City of Muscle Shoals to support critical infrastructure and flood mitigation efforts across the community. This fund, fueled by a dedicated one-half cent sales tax, represents the City’s long-term commitment to safeguarding homes, businesses, public amenities, and natural assets from stormwater-related risks.
Purpose & Impact
The fund is designated for flood mitigation, storm drainage improvements, stormwater management, and related infrastructure projects. Since its inception, the account has enabled the City to address longstanding drainage issues, improve retention ponds, and strengthen overall water control systems—especially in high-risk flood zones.
Major Investment Highlights (FY2018–FY2024)
Over the last several fiscal years, the City has strategically used the fund for:
Storm Drainage Construction: Nearly $3.1 million in storm drainage construction-in-progress and capital outlay as of FY2023, including major retention pond work and storm system expansion.
Retention Ponds & Drainage Enhancements: Annual targeted investments—such as $312,081.85 in FY2021 and $493,762.51 in FY2023—for pond rehabilitation and expanded drainage capacity.
Engineering & Consultant Services: Supporting smart infrastructure with consistent consulting engagements ranging from $11,700 to $107,000 annually.
Equipment & Testing: Purchases and rentals for specialized storm drainage equipment, testing services, and program review fees—ensuring both compliance and durability of infrastructure.
Revenue Sources
The One-Half Cent Flood Mitigation Fund is supported through:
Dedicated Sales Tax Revenue
Transfers from the City’s General Fund — exceeding $2.2 million per year in recent fiscal years.
State & Federal Grants, including:
Strong Fiscal Growth
The fund has steadily grown its asset base from just over $649,000 in 2018 to more than $5.6 million by the close of FY2024, reflecting strong fiscal planning and responsible project execution.
Transparency and Accountability
The City ensures that all expenditures are clearly documented and reviewed annually. The fund is managed in accordance with Governmental Accounting Standards and all revenues, expenditures, and fund balances are audited and publicly reported.
