Amanda Long, interim finance director, presented the Villarrica proposed FY2026 budget at the Aug. 26 called meeting, calling for a $56.7 million total budget and recommending the council maintain the adopted millage rate at 5.588 to fund operations and rising debt service. The council opened a public hearing on the budget; the council did not vote on the budget at that meeting and scheduled a vote for Sept. 9.

Long said the total proposed budget of $56.7 million breaks down roughly as: general fund 42%, water and sewer 24%, Eastside TAD 12.2%, and debt service 7.8%. She said the TAD debt-service line in the budget is increasing sharply and that the general fund will need to cover a substantial portion. Long summarized revenue assumptions: holding the millage at 5.588, a projected $220,000 increase in franchise taxes, $265,000 in additional sales tax revenue, $120,000 more in insurance premium tax, a $76,000 decrease in interest revenue, and increased transfers from enterprise funds of $118,000.

On expenditures, Long said departments requested $3.96 million in budget improvements; the council-funded portion was $2.13 million, leaving $1.83 million unfunded (general-fund unfunded requests about $1.7 million). Personnel costs are the single largest line at $16.7 million (a 3% increase). The proposed budget adds four police officers; those positions are funded only for a quarter of the year in recognition of hiring timelines. The budget includes a proposed 2% cost-of-living adjustment for all employees (approximately $248,000) and a one-time $306,100 bonus for part-time and full-time employees funded from the self-insurance fund.

Capital requests highlighted by Long included $487,000 for six police vehicles (four for new officers and two replacements), $225,000 to replace water lines on North Candler and West Gordon streets, $105,000 to replace gym flooring at Gold Dust, $233,000 for meters tied to new builds, and assorted equipment for parks, grounds, and utilities. Long said water purchases from Douglas and Carroll counties were budgeted at $1.8 million, an increase of $500,000 from last year. She summarized debt-service obligations: water/sewer bonds require principal and interest payments that produce approximately $2.4 million in debt service; TAD bonds for 2026 total about $1.96 million, of which roughly $1.1 million will be charged to the general fund absent other revenue.

Long also addressed follow-up items raised at prior public meetings: traffic-calming funds were moved from Douglas SPLOST to Carroll SPLOST where the projects are located; the city will maintain its current approach to budgeting sick and vacation pay under compensated-absences guidance; and a line for recreation dues and memberships was detailed (VSA Arts of Georgia, USA Gymnastics, SurveyMonkey, Adobe, American Camp Association, GRPA). Long said the proposed water and sewer fees would not increase in 2026 because rates were raised in 2025 and the department will assess impacts this year.

During the public hearing on the budget, a resident raised concerns the Eastside TAD has not produced visible neighborhood investments and questioned whether the $80,000 figure the city has discussed will be sufficient to complete park work or infrastructure. The resident said construction and equipment costs make an $80,000 allocation insufficient to complete a new park and urged the council to allocate funds for Ward 1 infrastructure if TAD or grants do not cover it.

Long and other staff answered procedural and line-item questions from council members and confirmed several clarifications submitted after the prior meeting. The council did not take action on the budget at the Aug. 26 meeting; the transcript records the council will vote on the FY2026 budget on Sept. 9.