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Johns Creek proposes balanced $78.6M FY2025 budget, warns of sharp health‑care cost rise
Summary
City officials presented a balanced FY2025 budget of about $78.6 million that trims revenue forecasts by roughly 2% because of a $2 million decline in local option sales tax, adds six positions (four in police, two in municipal court), and flags a projected 73% rise in employee health premiums leading to a roughly $2.8 million cost increase.
Johns Creek officials on July 8 presented a proposed FY2025 budget that keeps revenues and expenditures roughly in balance at about $78.6 million while flagging revenue pressures and sharply higher employee health‑care costs.
Mayor (S2) and Director Campbell (Director Campbell) said the city forecasts overall revenues down about 2% from 2024, driven primarily by an anticipated $2,000,000 decrease in local option sales tax receipts following a 2023 renegotiation of how lost revenues are split with Fulton County. "FY 2025 revenues are down by 2% compared to 2024," Mayor (S2) said during his remarks.
Campbell outlined the spending side: operational expenditures would rise roughly 11% year over year, mainly to fund six new personnel — four police positions (two crime‑suppression officers, one detective, one intelligence officer) and two municipal court positions for insourcing probation services. He said personnel and benefits account for the majority of the general fund budget. "The growth in operational expenditures is driven by 6 personnel additions for public safety and rising health care costs for city employees," Campbell said.
The presentation identified a projected 73% increase in health‑insurance premiums based on preliminary broker projections. Campbell said that increase would amount to about $2,800,000 over the previous year to maintain current coverage levels. "Premiums are very unfortunately anticipated to rise by 73% based on preliminary projections from our broker," he said.
Despite those pressures, the proposed budget programs several capital priorities. The council previously adopted a five‑year capital improvement plan and singled out replacement of Fire Station No. 63 and construction of a Police South Substation as top priorities; staff said FY2025 would include approximately $7.3 million toward those projects and roughly $7.7 million in overall capital enhancements. Campbell said the city expects modest revenue cushions from stronger-than-expected interest earnings and certain taxes that performed above projection, producing a projected FY2024 surplus of about $700,000 that staff has programmed toward the fire station.
Campbell walked council through accrual funds and vehicle‑replacement accounts, saying the FY2025 budget recalibrates contributions so the vehicle and equipment replacement funds remain positive. He also summarized long lists of transportation projects funded by the Transportation Local Option Sales Tax (TSPLOST) and said staff will continue monthly monitoring of the top 10 revenue sources.
Council members pressed staff for follow-up analyses, asking for (1) a breakdown showing how much the city lost in sales tax receipts because of the 2023 renegotiation with Fulton County, and (2) clearer beginning balances on accrual‑fund tables shown in the binder. Campbell agreed to provide both items before the next meeting.
The council has scheduled public hearings on the proposed budget for July 29 and Sept. 9, with staff aiming for final adoption at the Sept. 9 council meeting to allow entry of budget data before the Oct. 1 fiscal year start.
