Marietta finance committee advances FY 2026 recommended budget; council to review after public hearing

Marietta's finance committee reviewed the recommended fiscal year 2026 budget and voted to forward it to the agenda work session for further council consideration after public budget hearings.

Finance staff summarized the FY 2026 recommended budget as $428,392,732 and described a year of tighter revenue conditions and higher costs. "This year was a little bit more challenging," the finance presenter said, noting slower growth in major revenue lines and an anticipated 2% countywide digest increase used in revenue assumptions. The presentation detailed a reduced capital allocation, uses of reserves in certain funds, and built-in placeholders for potential mid-year salary adjustments.

Key figures and assumptions: The recommended budget includes no millage increase, no general fee increases, a projected $2,000,000 in salary-savings (down from $2.8 million last year), a reduced capital budget of $1,000,000 (down from $1,500,000), and placeholder projections for a 4% mid-year review of eligible employees. The Board of Lights and Water (BLW) portion showed a use of reserves ($4,000,000) for capital and a wholesale/retail rate adjustment between BLW and the general fund. The budget also anticipates a $750,000 payment for the final ladder truck installment.

Personnel and cost-savings: The recommended FY 2026 budget adds two full-time employees to bring downtown sanitation work in-house; staff said the change will cut costs long-term because the city already owns required equipment. Staff also plans a $400,000 annual transfer from the golf fund to general fund as part of standard practice.

Committee action: The finance committee moved the recommended budget forward to the agenda work session to allow the council to review outcomes from scheduled public budget hearings (a separate public hearing was scheduled for June 3 at 6 p.m.). A motion to "move this forward to the agenda work session" passed unanimously.

Why it matters: Staff warned that capital needs outpace current resources and that if the proposed SPLOST (special purpose local option sales tax) does not pass in future elections, the city could face substantial pressure to raise taxes or reduce services. Officials said many capital and operating costs are increasing while revenue growth is largely flat.

Next steps: Staff will incorporate public hearing input and present any recommended changes at the council agenda work session before the formal council vote on the budget.