Alpharetta council reviews $162 million FY2026 budget, flags fire-truck lease and EV charger investments

Director Harris, the city’s presenting director for the budget, opened a June 2 work session with a high-level review of the proposed fiscal year 2026 budget, saying the total package is about $162,000,000 and that departments will return for public hearings on June 16 and June 23.

The budget matters because it sets the city’s operating priorities, capital projects and the staffing and service levels for the next year. Harris told council the package assumes modest revenue growth, relies on roughly $5 million in carry-forward fund balance for capital and includes $214,500 set aside for new operating initiatives.

Harris said the general fund transfer to capital in the proposal is $2,262,000 and that debt service is roughly $6.6 million this year. He described revenue pressures that limit growth: the floating homestead exemption (which caps residential growth at the lesser of CPI or 3%), a one percent contraction projected on commercial values, slow hotel-motel growth compared with pre-pandemic levels, and local-option sales-tax dynamics that reduce city shares. Harris also said the budget proposes an average 3% pay increase for city employees.

Council members pushed staff on specific capital and replacement items in the five-year capital improvements program (CIP). Councilman Hipes praised the expanded CIP detail and asked how conservative projected fund balances are; Harris said the projections aim to rebuild reserves slowly and are intentionally conservative. Hipes and other council members pressed on fleet and equipment timing.

On fleet and public-safety apparatus, staff described two related budget lines. A fleet-replacement pool for general vehicles appears in the CIP; staff said replacement timing should be data-driven (miles and maintenance), not a fixed age alone. Separately, the budget shows a $4,000,000 capital lease for two engines and one ladder truck in the CIP; staff explained the city uses capital leases for large fire apparatus and said, if approved later, annual lease payments would be roughly $400,000 and would be presented to council for formal approval before procurement.

Council and staff also discussed a proposed $260,000 investment in direct-current (DC) fast chargers, initially budgeted with no first-year revenue offset. Mr. Lagerbloom, staff leading that work, noted case studies showing much faster returns at some sites (18–20 months) and said the chargers would produce operating revenue, not capital offset, once in service. Staff said site-specific negotiations with Georgia Power and installation logistics remain to be completed.

Public-safety equipment requests drew questions. Chief Robinson described a $75,500 proposal for a forensic/scene-scanner (sometimes called a “Faro” scanner in practice); he said the unit is currently borrowed from Roswell for major crash, crime-scene and arson investigations and that local ownership would avoid delayed response. Staff noted recurring annual software/license costs of roughly $4,000–$6,000.

Other capital items noted in the CIP discussion included a parking-garage maintenance allowance budgeted at $50,000 per year for two garages, and a generator replacement line of roughly $100,000 that staff said reflects an all-in, delivered-and-installed quote (equipment, pad, connection to natural gas and site work).

Council members emphasized budget discipline in a tight cycle, questioning several $50,000 operating requests (including a Christmas tree lighting increase) and asking staff to prioritize core maintenance and safety items. Harris said the city maintains a 25% emergency reserve target and uses audit results and carry-forward balances to fund one-time capital needs rather than recurring operations.

No formal votes were taken at the workshop; staff were asked to return with supporting analysis and will present the budget again at the June public hearings.

What’s next: the council will hold two public hearings on the FY2026 budget, June 16 and June 23, before taking final action on the ordinance to adopt the budget.