At this time, I call to order the Clayton County Board of Commissioners meeting.

The date is June 9th, 2026, and the time is 751 p.m.

We will move into our budget hearing.

District one for our role.

Let's move to our roll call, district one.

Here.

All right, district three, present, district two, present.

And district four.

Present.

All right.

Next on our first on our agenda would be our budget hearing.

And is that you, Mr.

CFO?

Yes.

Okay.

You didn't zoned out on the subject.

All right.

Good evening, Board of Commissioners.

Tonight I am pleased to present the proposed fiscal year 2027 budget for Clayton County Board of Commissioners.

This budget reflects the board's commitment to maintain a central services, supporting our employees, preserving financial stability, and investing in the future of our community.

This proposed budget is balanced, fiscally responsible, and positions Clayton County for continued success.

Some of the budget goals and priorities that were discussed throughout this budget process included maintaining a central county services.

Now before jumping into the budget, I'd like to review our current financial position.

So this government enters fiscal year 2027 from a position of financial stability.

Through April 30th, 2026, revenues exceed expenditures by approximately 26.2 million.

Because our financial position provides a solid foundation as we plan for the upcoming fiscal year.

This chart illustrates the county's general fund balance over the last four fiscal years.

So as of June 30th, 2025, the fund balance was 90.9 million.

So on an average, the county expends about roughly 27 million or so in operating expenses.

So in order to meet the objective of the resolution 2025-53, by having a four-month minimum reserve, the county would need at least 111 million to meet that requirement.

And as I mentioned currently, or as of uh June 30, 2025, the fund balance was at 90.9 million.

Now we do expect that number to grow as we approach the end of this fiscal year.

Um however, we still have two months left as of this report.

The proposed fiscal year 2027 budget totals approximately 347.6 million for the general fund, representing an increase of approximately 4% over the fiscal year 2026 adopted budget.

This budget reflects a balanced approach that maintains essential county services, supports our workforce, invests in public safety, and preserves the county's long-term financial stability.

I am pleased to report that the proposed budget maintains a current millage rate for the MMO for 14.522, which remains unchanged from fiscal year 2026.

The proposed budget includes a fire fund millager adjustment from 4.146 mills to 4.50 mills.

This adjustment is intended to address growing service demands and support critical investments in fire protection, emergency response, staffing and equipment.

Other taxes and assessments contribute approximately 80.9 million.

Charges for services provide approximately 26.3 million.

While our revenue structure remains stable, future growth will require continued economic development and expansion of commercial tax base.

On May 11, 2026, Governor Brian Kemp signed the home ownership opportunity and market equalization act, commonly known as the Home Act and also House Bill 33.

The legislation was designed to provide property tax relief for homeowners by limiting the growth of taxable assessed values on homestead residential properties.

While the law provides tax certainty for homeowners, it also creates new challenges for local governments that rely on property tax revenues to fund essential services.

For Clayton County, the Home Act is expected to slow the future growth of the county's tax digest, which may reduce one of the most significant sources of reoccurring revenue moving forward.

As revenue growth becomes more constrained, local governments will need to place greater emphasis on operational efficiency, strategic financial planning, economic development, and expansion of the commercial and instant and industrial tax base.

So with this slide, it it illustrates the projected impact of the Home Act on the county's tax digest growth.

Historically, growth in assessed property values has helped support county operations without significant tax increases.

The highlighted area you see below with the red box demonstrates a widening gap between historical tax digest growth and projected growth under the Home Act.

As property value growth on the homestead residential properties becomes more limited, the county's tax digest is expected to grow at a slower pace over time.

With regard to the general fund expenditures, the proposed fiscal year 2027 budget allocates resources towards services residents expect and exert and deserve.

The largest investment remains courts and law enforcement at approximately 128.7 million.

General government operations account for a little over 107 million.

Public safety represents approximately 69.3 million.

These investments reflect the board's continued commitment to safety, service delivery, and operational success.

The fiscal year 2027 budget includes several strategic.

Oh, I went a little bit too far.

The fiscal year 2027 budget includes several strategic investments.

First, a 2% cost of living adjustment for sworn and non-sworn employees at the cost of approximately $4.1 million.

Our employees remain one of the county's most valuable resources, and this investment supports recruitment and retention efforts.