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City manager flags first measurable sales‑tax downtick; urges budgeting caution ahead of next fiscal year
Summary
City Manager Sharon D. Subadan told council South Fulton saw a measurable downturn in sales tax, prompting caution in the next budget and a directive to department heads to be conservative. She said there is no hiring freeze planned but staff will scrutinize new position requests.
City Manager Sharon D. Subadan alerted council on Tuesday that sales‑tax receipts showed “a little bit of downtick,” the first measurable decline she could recall in recent years.
“We saw a little bit of downtick in our sales tax numbers,” Subadan said in presenting the finance materials. “I am concerned about a recession. As we get ready to prepare our budget, we will be talking to you all about your priorities, but I'm also cautioning department heads to be conservative as we go into the next budget year.”
Subadan said she had submitted the finance report through April (March figures finalized in the packet) and asked council members to prioritize needs as staff drafts the coming year’s budget.
Several council members asked whether a hiring freeze or other immediate personnel actions would be imposed. Subadan said the city is “in very good financial shape” and she did not anticipate an across‑the‑board hiring freeze. “I don't see a need to do a hiring freeze,” she said, but added that she would “be looking really hard at any request for additional positions in the budget.”
She also warned that gaps could emerge if federal funding changes and told department heads to plan for tighter spending in noncore areas.
What’s next: City staff will return with budget‑planning materials and ask council about priorities for the next fiscal year. Subadan said she would follow up with any departments that need to tighten spending and will flag material changes to revenue as they occur.
