City Council Special Call Budget Work Session

CITY COUNCIL SPECIAL CALL BUDGET WORK SESSION MINUTES Wednesday, May 13, 2026 Council Chambers 3:00 PM 70 S. Clayton St, GA 30046 Call to Order PRESENT Mayor David Still Mayor Pro-Tem Bruce Johnson Council Member Victoria Jones Council Member Randy Travis ABSENT Council Member Bryant Harris Approval of Agenda Motion to approve Work Session Agenda made by Council Member Jones, Seconded by Mayor Pro- Tem Johnson. Voting Yea: Mayor Still, Mayor Pro-Tem Johnson, Council Member Jones, Council Member Travis Council Business There is no public comment during this section of the agenda unless formally requested by the Mayor and the Council. 1. Fiscal Year 2027 Budget Work Day Keith Lee, Chief Financial Officer presented this item and answered questions from Council. Presentation Only. Final Adjournment Motion to adjourn City Council Special Call Budget Work Session made by Council Member Travis, Seconded by Council Member Jones. Voting Yea: Mayor Still, Mayor Pro-Tem Johnson, Council Member Jones, Council Member Travis Minute Signatures David R. Still, Mayor Karen Pierce, City Clerk FY 2027 Proposed Budget June 10, 2026 Agenda • Overview • Revenue • Expense – Personnel • Proposed Salary Adjustments • New Positions • Changes at the Fund Level • Capital Projects Plan FY 2027 Budget Calendar • Developed revenue projections in late December 2025 & early January • Departments submitted operating, personnel and capital requests in January and February • Finance Citizen’s Committee meetings and input during the month of March • City Manager review of the requests in March • Budget submitted to Council in April – Council input and public hearings in April and May – Adoption of Budget in June • Adoption of Millage Rate in July FY 2027 Revenue Projections • HB 581 Changes (FY 2026 was first year) – The City chose not to opt out of the Value Offset Homestead – Homesteaded properties will be capped at the inflationary rate published by the Department of Revenue Commissioner • FY 2026 Impact: -$136,599 • Estimated FY 2027 Impact: -$34,268 – Value Growth for Residential Property was $1.9% for Tax Year 2026 – Estimated Rollback: 3.097 Mills – Budget based on 3.26 Mills  FY 2027 Revenue Projections • Budget assumes no change to Millage Rate: 3.26 – Millage Rate the same as FY 2025 and FY 2026 – General Fund Revenue Budget increase of $946,856 • Tax Revenue matches five-year model and is conservative based on the initial digest – The City will hold 3 millage public hearings and advertise a “Tax Increase” if we do not use the rollback rate FY 2027 Revenue Projections • Occupation Tax – $2,000,000 – Increase of $600,000 for the third year of new Occupation Tax Ordinance • Insurance Premium Tax – $3,365,840 – Increase of $365,840 • Other Revenue - DDA Rental/Lease Property, Sale of Assets – $770,000 – Increase of $68,540 due to lease increases FY 2027 Revenue Projections con’t • Fines & Forfeitures Court – $2,052,000 – Increase of $201,000 – School Zone Speed Cameras not in General Fund, but only for Public Safety • $1,700,000 • Decrease of $300,000 • Licenses and Permits - Alcohol Licenses, Building Permits, Zoning Fees – $629,050 – Decrease of $142,600 • Interest Revenue – $445,000 – Decrease of $155,000 FY 2027 Revenue Projections con’t • Operating Transfers–in $14,588,228 – $10,429,662 Gas – $3,598,566 Electric – $560,000 Speed Cameras (PD Overtime and Differential Pay) – Decrease of $3,261,921 • Charges for Service Indirect or Overhead – $12,250,220 – Increase of $1,250,527 • Utility Statement and Connect Fees – $2,457,000 – Decrease of $13,000 General Fund Transfer-In Trend $25,000,000 42.07% 45.00% 37.91% 40.00% $20,000,000 33.91% 32.16% 35.00% 28.40% 30.00% $15,000,000 25.00% 20.00% $10,000,000 15.00% $5,000,000 10.00% 5.00% $0 0.00% FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Electric and Gas Transfer In General Fund Budget Percent of Budget FY 2027 Revenue Projections con’t • Electric Rates – The Budget reflects the changes in Electric Rates – The Council approved the three-year Electric Rate program in March 2025 • Gas Rates – The Budget Reflects the increase in Gas rates based on the proposed three- year rate plan – The Council approved the three-year Gas Rate program in April 2025 • Sanitation Rates – The Budget reflects the changes in Sanitation Rates – The Council approved the three-year Sanitation Rate program in March 2025 FY 2027 Salary Adjustments • Proposed 3.1% Average Increase for FY 2027 Salary Adjustments- based on Atlanta MSA reports published March 2026 – $1,008,367 • $843,497 Salaries • $92,244 Retirement • $64,106 Social Security / Medicare • $8,520 Overtime – to be implemented on the first full pay period after July 1, 2026 FY 2027 Personnel – New Positions • Total of 13 Positions: $1,391,676 Total • $1,226,676 in salary, benefits, supplies, and operating costs • $165,000 in capital costs • 3 Associated with General Fund Operations • $437,672 • 6 Associated with operating the LAC • $318,795 • 1 Associated with the Electric Fund • $147,970 • 2 Associated with the Natural Gas Fund • $370,172 • 1 Associated with Sanitation Services • $117,067 FY 2027 Personnel – New Positions Department Count Position Title Court 1 Deputy Court Clerk Electric 1 Lineman III Finance 1 Contract Manager Gas 1 Field Service Specialist I Gas 1 Pressure Control Technician LAC 1 LAC Operations Manager LAC 4 PT- Patron Services Associate LAC 1 Patron Services Supervisor Police 1 Emergency Management/ Victim Services Sanitation 1 Sanitation Supervisor $1,391,676 FY 2027 Overview – Operating Fund Revenue Expenses Variance 100 – General Fund ($51,361,938.00) $51,361,938.00 $0.00 210 – Confiscated Assets ($71,000.00) $71,000.00 $0.00 211 – Confiscated Assets ($10,500.00) $10,500.00 $0.00 215 – 911 Fund ($1,425,935.00) $1,425,935.00 $0.00 270 – TAD ($1,300,000.00) $1,300,000.00 $0.00 275 – Hotel/Motel ($550,000.00) $550,000.00 $0.00 280 – Vehicle Rental ($200,000.00) $200,000.00 $0.00 285 – School Zone Cameras ($1,700,000.00) $1,700,000.00 $0.00 510 – Electric ($43,702,655.00) $43,702,655.00 $0.00 515 – Natural Gas ($68,490,570.00) $68,490,570.00 $0.00 540 – Sanitation ($3,665,925.00) $3,665,925.00 $0.00 555 – Special Events/LAC ($4,290,300.00) $4,290,300.00 $0.00 560 – Storm Water ($2,552,100.00) $2,552,100.00 $0.00 610 – Group Health ($9,856,900.00) $9,856,900.00 $0.00 615 – Worker’s Comp ($700,000.00) $700,000.00 $0.00 620 – Fleet ($2,320,880.00) $2,320,880.00 $0.00 625 – Risk ($2,599,400.00) $2,599,400.00 $0.00 ($194,798,103.00) $194,798,103.00 $0.00 FY 2027 Capital Overview Fund Revenue Expenses Variance 326 – SPLOST ($7,248,558.00) $7,248,558.00 $0.00 355 – Capital ($10,284,500.00) $10,284,500.00 $0.00 511 – Electric Capital ($1,950,000.00) $1,950,000.00 $0.00 516 – Natural Gas Capital ($3,150,000.00) $3,150,000.00 $0.00 541 – Sanitation Capital ($204,500.00) $204,500.00 $0.00 561 – Stormwater Capital ($1,000,000.00) $1,000,000.00 $0.00 ($23,837,558.00) $23,837,558.00 $0.00 Operating Budget ($194,798,103.00) $194,798,103.00 $0.00 Total Budget ($218,635,661.00) $218,635,661.00 $0.00  FY 2027 General Fund Revenue Expenses Category Budget Amount Category Budget Amount 31 Taxes ($16,859,990.00) 51 Personal Services $23,450,952.00 32 Licenses & Permits ($629,050.00) 52 Contracted Services $9,123,103.00 33 Intergov Revenues ($881,250.00) 53 Supplies $3,442,004.00 34 Charges for Services ($14,884,220.00) 54 Capital Outlay $0.00 35 Fines & Forfeitures ($2,052,000.00) 55 Interfund Charges $9,149,490.00 36 Investment Income ($445,000.00) 57 Other Costs $4,694,020.00 37 Contributions $0.00 58 Debt Service $877,434.00 38 Miscellaneous ($212,200.00) 61 Other Financing Uses $624,935.00 39 Other Financing ($15,398,228.00) Grand Total ($51,361,938.00) Grand Total $51,361,938.00 Note: General Fund Subsidizes the 911 Fund: $624,935 FY 2027 Community & Econ Dev • $4,290,300 Budget – 2 Full-Time New Positions (LAC) – 4 Part-Time New Positions (LAC) – $498,550 Live Entertainment – $466,200 Contract Labor – $282,650 Rental of Equipment FY 2027 Electric Fund • $43,702,655 Proposed Budget – 1 new position – Fund Transfers-Out • $3,598,566 General Fund Operating • $3,355,324 General Fund Capital • $1,950,000 Electric Fund Capital – Indirect Costs • $3,226,530 – Purchase of Electricity for Resale • $25,435,000 – Sponsorship of the LAC/Special Events • $1,125,975 FY 2027 Gas Fund • $68,490,570 Proposed Budget – 2 New Positions – Fund Transfers-Out • $10,429,662 General Fund Operating • $6,579,176 General Fund Capital • $3,150,000 Gas Fund Capital – Indirect Costs • $6,994,530 – Purchase of Gas for Resale • $25,921,000 – Sponsorship of the LAC/Special Events • $1,330,325 FY 2027 Solid Waste & Recycling • $3,665,925 Budget – 1 New Position – Solid Waste Disposal $973,000 – Indirect Cost $544,560  FY 2027 Capital Projects Plan Department FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 Damage Prevention $0 $7,363 $0 $7,363 $0 $7,363 Economic Development $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Electric $2,137,939 $7,411,000 $6,100,000 $6,375,000 $6,000,000 $7,060,000 Engineering $11,390,000 $4,608,155 $4,016,000 $1,520,000 $2,020,000 $2,020,000 Fleet $1,952,500 $1,910,000 $2,072,500 $2,132,250 $2,270,510 $2,396,040 Gas $3,150,000 $5,010,000 $5,455,000 $5,855,000 $15,350,000 $19,678,000 Gov Bldgs $782,619 $2,187,793 $2,276,891 $445,000 $807,000 $960,000 IT $360,000 $600,000 $600,000 $900,000 $150,000 $150,000 Planning $550,000 $0 $0 $0 $0 $0 Public Works $50,000 $0 $0 $0 $0 $0 Sanitation $204,500 $80,000 $114,000 $80,000 $114,000 $314,000 Stormwater $1,000,000 $1,300,000 $1,300,000 $1,300,000 $1,300,000 $1,300,000 Streets $2,210,000 $2,635,510 $2,416,000 $2,910,000 $2,490,000 $3,068,000 Grand Total $23,837,558 $25,799,821 $24,400,391 $21,574,613 $30,551,510 $37,003,403 FY 2027 Capital Projects • $23,837,558 Proposed Budget – Street Resurfacing: $1,500,000 – Vehicle Replacement: $1,825,000 – Quiet Zones North Clayton @ Maltbie: $1,750,000 – City Bridge Maintenance: $1,000,000 – Orange Parking Lot Expansion: $300,000 – Art’s Commission: $50,000 – Facility Maintenance: $482,000 – Vacuum Truck: $550,000 Upcoming Dates JUNE 2026 • Monday, 22: Adopt Budget at Council Meeting 7pm Questions