City of South Fulton City Council Work Session – FY2027 Budget Presentation (August 25, 2026)

Mayor Carmalitha Gumbs called the meeting to order at 4:00 PM on August 25, 2026, and a quorum was established after roll call. The only substantive agenda item was the presentation of the proposed FY2027 budget by City Manager Sharon D. Subadan and the city CFO. No executive session was held, and the work session adjourned at 5:21 PM by unanimous consent.

Discussion Items

• FY2027 Budget Presentation and Overview: City Manager Subadan presented a $390,889,455 proposed FY2027 budget under the theme 'Let's Build,' covering October 1, 2026 through September 30, 2027. The proposal includes a $186 million general fund, $159 million in capital funds, and $44.9 million in other funds. She described the operating budget as one of the most important annual policy decisions and said the budget continues previously approved initiatives while building parks, facilities, and a team that cares.

• Tax Digest Delay and Property Tax Impacts: The CFO explained that the 2026 tax digest is delayed because Fulton County has not fully assessed all real and personal property values, per an August 4 court order. The county is issuing temporary 2026 property tax bills using 2025 millage rates; residents may owe more or receive refunds after reconciliation. She noted a state homeowner tax relief grant expected to save Georgia homestead owners about $500 on 2026 bills, but cautioned that it is not recurring. She also outlined new senior school-tax exemptions: up to 25% reduction in assessed value at age 65 and up to 50% at age 70 for homesteaded properties meeting eligibility criteria.

• Revenue Highlights: The proposed citywide budget includes approximately $283.1 million in operating revenues, $40.8 million in interfund transfers, and $66.9 million in budgeted use of reserves. Property tax is projected at $67.9 million, up $2.5 million; local option sales tax is projected at $40 million, up $2.1 million; and bond proceeds decrease from about $96 million to $64.9 million because of the timing of police and fire construction. General fund recurring operating revenues are projected at $151.6 million. No change is proposed in the millage rate.

• Expenditure Highlights: Public safety remains the largest citywide investment at $136.7 million; the $27 million, or 16.5%, decrease is tied to reduced public safety capital spending and not to operational cuts. Public works increases by about 9.5% to $86 million citywide. General fund personnel costs increase because of annualized merit increases and the collective bargaining agreement. Purchased and contracted services decrease to approximately $19.5 million, a reduction of about 13.3%; supplies decrease by $1.2 million to $6 million; and capital spending drops $3.6 million because fewer vehicle purchases are budgeted. Total general fund transfers out are $38.6 million, including $23.9 million to the capital improvement plan, $7.4 million for public safety bond debt service, $2 million to the E911 fund, and $1.9 million for grant matches. The total proposed general fund budget is $186.2 million. Councilwoman Rowell asked about reserves; staff said the city remains well above the 25% reserve requirement.

• Special Revenue, Enterprise, and Capital Funds: The 2027 budget includes special revenue funds, with the last ARPA grant budgeted at about $284,000. Solid Waste and Wolf Creek enterprise funds total $12.2 million; Wolf Creek, about $994,184, is fully funded by the general fund. The tree fund/refundable escrow is budgeted at $2.7 million, and the South Fulton Development Authority is budgeted at $275,892 using its own fund balance. Capital funds decrease 16% overall due to public safety construction timing; TSPLOST increases; LMIG decreases about 17%; and the capital improvement plan drops from $34 million to $23 million. Debt service increases about 80% because the budget recognizes the full principal and interest payment on the new public safety bond. TSPLOST is budgeted at $55 million, drawing on fund balance, and will be on the November ballot.

• Council Questions and Positions: Councilman Sebastian asked about hiring strategy; City Manager Subadan said mission-critical public safety, public works, and frontline positions continue to be filled, with broader hiring expected to reopen in October if the budget is approved. Councilman Johnson noted Fulton County has not coordinated a citizen communication plan and suggested using the tagline 'don't be alarmed, do stay informed' in outreach. Councilwoman Rowell asked about reserves, Wolf Creek revenue, the tree fund, and the senior exemptions; she called the tax digest page the most powerful slide and requested clear communication materials. Councilwoman Williams Brown flagged a discrepancy between citywide culture/recreation decreases and general fund increases, then said inflation should prompt reconsideration of signature and secondary event funding. Councilwoman Wright asked about the $150,000 Welcome All cooling system line item; City Manager Subadan said it is an estimate for continued improvements to the only pool serving 115,000 people. Councilman Sebastian commended the no-millage-rate-increase proposal.

Key Outcomes

• The Council received the proposed FY2027 budget; no formal vote was taken at the work session.
• City Manager Subadan confirmed the one-pager, PowerPoint, and budget-in-brief booklet will be posted to the city website and shared on social media.
• City staff agreed to prepare and share county property tax bill communication materials for council use.
• City staff agreed to provide a clearer breakdown of citywide versus general fund budget categories and a multi-year tax trend once the tax digest is certified.
• Council requested consideration of inflation-adjusted funding for signature and secondary events and an outward-facing TSPLOST campaign before the November ballot.
• Next budget steps include a public hearing at the same evening's 7 p.m. meeting, an informational presentation on September 8, and a public hearing and adoption on September 22.
• No executive session was held; the work session adjourned at 5:21 PM by unanimous consent.