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Hiram Council approves $760,000 loan for facility renovations; audit warns general fund reserves may be exhausted
Summary
At its December meeting the Hiram City Council approved a 10-year $760,000 GMA loan to renovate two administrative facilities, authorized about $66,000 in additional streetscape funding, approved use of 2026 LMIG funds for Nebo Road, and adopted budget amendments after an auditor reported significant year-over-year losses and warned reserves could be gone by mid-2026.
The Hiram City Council on Tuesday moved ahead with a package of facility and road projects while receiving an auditor's caution that continuing budget gaps could deplete the general fund by June 30, 2026.
Auditor Whitaker told the council he had "issued an unmodified opinion" on the city's financial statements for the fiscal year ending June 30, 2025, and then laid out the numbers: total general fund assets of $3,575,225 (about $3.3 million in cash and investments), liabilities of $342,000 and a fund balance of roughly $3,232,000. Whitaker said general fund revenues were $4,868,000 while expenditures totaled $7,025,000, producing an excess of expenditures over revenues of $2,156,000 and a net change in fund balance of negative $1,581,000. He warned, "If that holds true, the city will not have any reserves in the general fund at 06/30/2026."
That financial backdrop set the context for several votes. The council adopted resolution 2025-11 authorizing execution of documents related to renovations of two city facilities and agreed to a 10-year loan through the Georgia Municipal Association (GMA). City manager Jody explained the loan terms and purpose: "The total amount is $760,000 at this time," she said, adding that the funds will cover renovations and HVAC reapportionment so administrative offices can be relocated and police operations have room to expand. Jody said closing on the loan was expected within two weeks and renovations would begin in January.
Council members also authorized an additional allocation of approximately $66,145 to the Harris Drive streetscape project after public works staff reported unexpected subgrade failures that require more than a mill-and-pave. Public works staff advised the $66,145 figure is a maximum estimate and that they will work to lower actual costs where possible.
The council adopted resolution 2025-12 to use 2026 Local Maintenance & Improvement Grant (LMIG) funds for engineering and construction on the Nebo Road improvement project. Staff explained that Nebo Road has premature alligatoring and undermining in areas where water infiltration has compromised the subbase; the engineer recommended remedial subbase work to prevent repeat failures.
Separately, the council approved housekeeping budget amendments for the water and sanitation funds to apply remaining prior reserves and to balance those funds heading into the new year. Staff said sanitation code enforcement and billing actions will begin in January, with code marshal John Wilkins taking an enforcement role.
The council also approved a contract with Talley, Richardson & Cable for city attorney services for 2026 and adopted ordinance 2025-19, an alcohol ordinance amendment. Most votes were voice approvals; the transcript records seconds and "All in favor? Yes," but does not include roll-call tallies.
The actions leave Hiram with capital projects ready to begin in January, but the auditor's warning about continued operating losses highlights a near-term fiscal challenge for the council and staff as they implement renovations and roadway repairs.
Votes at a glance
- Minutes (11/05/2025 regular; 11/18/2025 work): adopted (voice vote, tally not specified) - Ordinance 2025-19 (alcohol amendments): adopted (voice vote) - Contract with Talley, Richardson & Cable (city attorney services for 2026): authorized (voice vote) - Resolution 2025-11 (authorize documents for facility renovations; GMA loan $760,000): adopted (voice vote) - Additional funding for Harris Drive streetscape (approx. $66,145): approved (voice vote) - Resolution 2025-12 (use 2026 LMIG funds for Nebo Road engineering/construction): adopted (voice vote) - FY2025 year-end budget amendments (water/sanitation and other housekeeping): adopted (voice vote)
What happens next
Staff said the GMA loan closing should occur within about two weeks, with renovation work slated to start in January; engineering and construction scheduling for Nebo Road will follow standard LMIG and contract processes.
Sources and limitations
Reporting here is based solely on the council meeting transcript and the statements made there. Vote outcomes are reported as recorded in the meeting (voice approvals); specific roll-call tallies were not provided in the transcript and are therefore listed as "not specified."
