Mayor, city staff present 2026 budget balanced at $35.9M; sanitation fee increases and SPLOST projects highlighted

City staff presented a proposed 2026 general fund budget balanced at $35,900,000 and outlined capital projects and fee changes the council will consider this year.

"We were able to balance this budget at a flat budget over last year at $35,900,000," the presenter said, describing the proposal as focused on "strategic investments" to sustain the city's growth. The presenter said the 6.25-mill figure is a projection; the council will set the millage in June.

The presentation traced the budget's context to recent credit-rating work and several years of planned capital spending. The presenter said growth in the prior five years created operational needs and that planned capital catch-up after the COVID period contributed to operating deficits in 2022, 2023 and 2024.

Key investments called out in the presentation included continuing debt service for property purchases on Broad Street and a new public works facility, construction of Fishbowl Park, and technology and staffing for a real-time crime center (the presenter referenced Flock and Axon agreements and a proposed investigator position).

Special revenue funds reflect the parks general obligation (G.O.) bond issued in 2024, the presenter said, noting roughly $30,000,000 is incorporated into those programs. Under SPLOST and grant funding, the city anticipates about $1,200,000 next year to begin right-of-way acquisition for Rail Trail segments 7 through 12, with a transfer and local match coming from a multiple grants fund.

The budget also includes continued design and engineering for a downtown City Hall Green, funding for Dresden Trail phase 2 and other park projects (Huntley Hills Park; Nancy Creek Trail; Savoy Trail; Wood Acres/South Chamblee Park; and implementation of the Keswick Park master plan), and property acquisition for Parsons Drive and the Perimeter Park Connector.

On operations, the presentation flagged a roughly 7% increase in employee health and benefits versus the prior plan, ongoing increases in custodial service costs, and new operating costs tied to recently completed facilities such as the Dresden Park community room and the public works facility. The city plans to procure budgeting software to consolidate requests and improve transparency for staff, elected officials and the public.

The presenter said the stormwater inventory and assessment contract approved last month is on the order of $1,000,000, with roughly half remaining to complete the scope. The presenter also said about $1,500,000 in stormwater repairs are scheduled and that debt service is included in that enterprise fund.

To address a recurring deficit in the sanitation enterprise, the presenter proposed phased residential fee increases of about $70 per year for each of the next three years (raising the residential charge to $355 in 2026 and to $495 by 2028). The presenter said, without the increase, the general fund would need to subsidize sanitation by approximately $1,100,000 annually. For commercial services the presenter said the city proposes moving from a flat $23.75 per month to $30 per month and an additional $8 per month for each additional "part" a business has, as described in the presentation.

Mayor praised staff for the work on the proposal and opened the floor for public comment. No members of the public spoke at the hearing. The presenter reminded the council that this was the first of three public hearings on the 2026 budget, with another scheduled for 6 p.m. tomorrow and a third at noon on Thursday. The mayor then moved to adjourn; the motion was seconded and the meeting closed (no roll-call vote was recorded in the transcript).

The council will consider the millage and any formal actions on the budget at subsequent meetings.