Johns Creek council hears FY 2027 budget presentation, flags county digest uncertainty

Finance Director Harpreet presented the proposed FY 2027 budget to the Johns Creek City Council, saying "The FY '27 budget is balanced, maintains all current service levels, funds vehicle replacements, infrastructure maintenance, equipment maintenance and does not draw on fund balance." The presentation laid out a general fund of $83,200,000, with the local option sales tax the largest revenue source at $28,500,000 and property tax revenue projected at $23,462,174 based on an assumed $100,000,000 growth in the Fulton County digest.

The presentation framed the budget around the city's fund-balance policy, which Harpreet described as a three-part approach of a three-month operating reserve, a cash-flow stabilization component and a surplus allocation policy. Harpreet told the council the audited unassigned fund balance at the end of FY 2025 was a little over $29 million and the current projection for the end of FY 2026 is about $32 million, including a surplus estimate of a little more than $2 million.

Councilmembers asked detailed questions about the revenue assumptions and contingency plans after staff said Fulton County had not yet finalized the digest. Staff said the county had directed municipalities to proceed with last year’s millage rate as a temporary measure and that any discrepancy from the eventual digest would be recalibrated later. Council members pressed on how elasticity would work if the actual digest or rollback changed, and were told operational funding was fully funded in the proposed budget and discretionary adjustments would most likely come from capital enhancements rather than across-the-board personnel cuts.

The proposed budget packages several public-safety investments and new positions. Harpreet listed 14 planned police vehicle replacements, a public-safety response vehicle, a tethered drone, and replacement of fire engine 63; personnel costs are budgeted for 291 full-time employees at a total personnel cost of about $46.2 million. The budget also includes a facilities manager position, a stormwater grants coordinator/inspector, continued funding for a stormwater grant program and a new pond-dredging matching grant program to assist neighborhoods dealing with sediment and stormwater that comes from outside their boundaries. In parks and recreation, the budget sets aside funds to replace the synthetic turf field at Newtown Park and advance trail and facility projects.

Staff also described benefit and compensation assumptions included in the plan: step increases (3.3% for full-time employees, 3.5% for department heads), a 2.99% COLA and an 8% cumulative increase in health benefits that includes a 16% increase projected for health and vision premiums effective Jan. 1, 2027; dental benefits remain unchanged. The personnel budget includes an increase of $285,580 to the overtime budget, largely to right-size fire-department overtime.

Harpreet closed with the budget calendar and next steps: a work session on July 27, followed by the first public hearing that same day, additional work sessions on Aug. 10 and Aug. 24, a second public hearing on Sept. 14 and final adoption at the council meeting on Sept. 14. Councilmembers requested additional detail on 10-year accrual forecasting and vehicle replacement schedules and asked staff to provide supporting materials in advance of the upcoming work sessions.

The council did not take final action on the budget at this meeting; the presentation sets the hearing schedule and staff will return with updated materials and potential adjustments after Fulton County releases the official digest.