Savannah presents $602 million FY25 budget with no tax-rate increase; $78.3M in capital allocations

City Manager (unnamed) presented the City of Savannah’s proposed $602,000,000 FY25 budget at a Nov. 26 council workshop, saying the plan is balanced and calls for no tax-rate increase.

The manager described the proposal as one that “is balanced, and I believe it delivers high quality and improved services, for our residents.” The draft budget would maintain the millage at 12.20, keep general fund spending at about $291,000,000 and set the capital program at $78,300,000 in new allocations for FY25. Staff also identified approximately $11,100,000 set aside for a 3% cost-of-living adjustment and about $5,300,000 in strategic budget cuts and efficiencies.

Why it matters: maintaining the current millage rate while funding a large capital plan aims to preserve municipal services without raising property taxes. Council members pressed staff on how one-time emergency spending from 2024 — notably hurricane debris removal — affects year-to-year figures and how reimbursements will be treated in accounting.

Budget details and revenue context Sancia Joseph Jarvis, interim director of the Budget Office, summarized resident input gathered over a roughly two-month summer survey (about 4,000 clicks and 783 submissions, 756 of which were Savannah residents). Residents prioritized stormwater infrastructure first, then housing and human services, Jarvis said. Citywide revenues were listed at roughly $601.6 million; staff noted a projected decrease of about $13.4 million (roughly 2.2%) from FY24 projections and flagged volatility in some non-tax revenue streams.

Jarvis and other staff explained that personnel costs (salaries, wages and benefits) account for more than half of general fund expenses, and the proposed budget includes funding to address compensation stagnation and city pension contributions.

Capital and project-management plans Victoria Keller and other capital staff said Savannah’s active ledger includes 271 active projects with an available balance of roughly $340 million across funding sources. Staff proposed $78.3 million in new FY25 capital allocations across 78 projects and described a five-year PAYGO plan totaling about $260 million. The presentation noted potential bond issuances — largely for water and sewer work — and that SPLOST 7 authorization expires in 2026.

On project delivery, the City Manager said staff are finalizing an RFP to hire third-party project managers for major horizontal infrastructure projects to accelerate delivery and make use of the city’s current bonding capacity.

Accounting, reimbursements and SPLOST Council members repeatedly sought clarity on hurricane-related emergency spending and FEMA reimbursements. Staff explained that reimbursable emergency costs incurred in FY24 will be applied to FY24 accounting, and FY25’s proposed revenues exclude those one-time emergency expenses. Council also discussed the prior practice of dedicating growth from a maintained millage to stormwater (about $7 million in past contributions) and early planning for a potential SPLOST 8, which staff said will require coordination with county governments and other municipalities.

What’s next Staff said the council will receive the budget on first reading with an approval deadline of Dec. 31 for the FY25 budget to take effect Jan. 1. Staff invited council members to follow up with budget office staff and OMB for details and to review the electronic budget book and active capital projects site for project-level information.