Cobb County staff presented a proposed 2026 budget that would increase the county’s operating budget by roughly $49.4 million, driven primarily by personnel updates, higher water costs and adjustments to claims and indirect cost allocations.

Budget staff described a starting shortfall of about $7,000,000 from earlier estimates and said they had narrowed that gap to a balanced proposed budget by combining revenue updates, finalized health‑care rates and expenditure adjustments. The general fund was shown increasing by about $18,300,000, primarily for personnel (an estimated $16,000,000) that staff attributed to roster updates, filled vacancies and benefit costs.

As part of the 2026 proposal, staff recommended a 2% across‑the‑board pay‑scale adjustment (a cost‑of‑living adjustment, or COLA) for all employees plus continuation of a merit program. Staff said the combined maximum increase would differ by employee category: non‑step (non‑step‑in‑grade) employees would have a proposed maximum of 5% (2% COLA plus up to 3% merit), while step‑in‑grade employees could receive a combined maximum of about 4.5% (2% COLA plus step/merit). County staff said the COLA and merit increases would be processed on separate payrolls to avoid confusing performance‑based awards with general cost‑of‑living adjustments.

Staff reported filling 106 positions since the 2025 snapshot and said the proposed 2026 budget includes funding for four new positions (two in fire and two in water). The county earlier had 290 position requests in March; the current proposal funds four of those requests. Staff explained that budgeted vacancies remain funded at 50% as a standard forecasting practice to allow for natural turnover.

Water operations were cited as a major budget driver: the water fund and related water operations were shown increasing by roughly $11,400,000–$13,800,000 depending on the slide, with staff attributing the majority of that increase to higher water purchases paid to the regional water provider and to higher costs for chemicals, electricity and parts. Staff said that over $7,000,000 of the water increase was specifically related to water purchases.

Staff also warned of a structural pressure in the county’s 9‑1‑1 fund. The fund’s primary revenue source remains the per‑line fee (described in the presentation as capped at $1.50 per line). Staff said 2024 was the first fiscal year the 9‑1‑1 fund showed a net loss, and they recommended the board consider legislative or budgetary options going forward because the fund will continue to show deficits unless the revenue cap is changed or the county provides additional general fund support.

Other budget items noted by staff included a $5,100,000 contingency accumulation in the fire fund (driven by digest growth and the fund’s lack of a floating homestead exemption), a claims/core benefits increase of about $5,900,000 (an accounting double count across funds), a $2,500,000 increase in indirect cost allocations and the removal of one‑time contingencies tied to the All‑Star event and a $1,000,000 Board of Commissioners contingency to help balance the plan.

Staff outlined the budget schedule: a special called meeting moved from July 15 to July 16, followed by a final public hearing and adoption scheduled for July 22 (meeting materials and a budget binder were to be posted on the county website). Staff also said health‑care rate negotiations came in slightly better than previously estimated, which reduced the shortfall.

Commissioners asked clarifying questions during the work session about how COLA and merit would be administered, vacancy funding at 50%, the stadium capital maintenance fund cap and the timeline for addressing the 9‑1‑1 fund shortfall. Staff said they would share detailed schedules for capital contributions and provide additional documentation for the budget binder and audit comparisons.

Ending: The budget will proceed through the public hearings and formal adoption process; staff said they would provide commissioners with follow‑up materials and detailed schedules ahead of the adoption vote.