Mayor and council were present with the exception of Councilwoman Paulette Chavers.
City Manager Charles Penny presented the FY 2026 Annual Operating Budget to council members on Tuesday afternoon in a work session at city hall.
“This was a challenging budget to put together,” Penny said, noting the objectives included recruitment and retention of employees, utility infrastructure growth, tax base and revenue growth, and an emphasis on public safety.
Penny reported that the city currently employs 350 people out of 360 authorized positions, to which Penny said should be credited to the pay structure put in place by council. He also stated the police department is hovering at 82-83 employees, which is full employment of authorized positions. “The chief has overhired by four at this point,” he said, adding that the city has also purchased land for a new fire station.
Budget Overview
- 6% total decrease from FY 2025 (partly due to lacking ARPA funds)
- 8% General Fund increase
- No increase in personnel – departments asked but were told ‘no.’
- Recommended pay plan adjustment of 4% per Condrey & Associates as well as Pay for Performance for employees
- 18 months in to plan, but needs market adjustment, per Penny
- No increase in Employee health premiums
- Increase in convenience fee, water & sewer rates, aid to construction fee, stormwater, gas, solid waste collection, solid waste disposal rates, and police and fire extra duty fees.
Desire to position the city for regional growth, grow downtown city center, keep pay plan up to date, and advance ‘Creative, Inclusive and Professional Culture.”
Penny said outside investors have said Statesboro looks like ‘the next Auburn (AL)
Budget in Brief
- $27,372,225 in FY 2026 up from $25,340,025 in FY 2025
- Total operating budget is $58,859,225 in FY 2026
Fire Services
- Expenditures at $7,681,481 in FY 2025 and to increase to o $8,096,930 in FY 2026
- $7,6 10,761 from the Statesboro Fire Service Fund in FY 2025, increasing in FY 2026 to $7,966,885
- Fire Station 3 – anticipated online by July 1, 2026
- Operational costs for Station 3 will not be in FY 2026
- Plan to study the feasibility of a fire fee, which is already in progress
To fund the department, $3.87 million in loans will be taken from Enterprise Funds to be repaid over 10 years
- Water Sewer Fund – $1,800,00
- Natural Gas Fund – $680,000
- Solid Waste Collection Fund $707,000
Penny said these loans can only be done one time. Other options include millage rate increases and ‘difficult decisions,’ but noted he thinks they can hold off until FY 2027 to take different actions, like instituting a fire fee.
Next year, however, it is expected that 2,500 additional homes to generate revenue are expected to ‘come online’
“Personnel is just expensive. Fire service, you can’t live without it and it’s just expensive,” Penny said of the 69 fire personnel.
Revenue Review
- 7.5% increase in overall General Fund Revenues
- 12% property tax digest growth
- Franchise fees remain flat
- Loss of Fire District Tax – $2.3 million
The budget relies on $17,423,000 in tax revenue, of which $9.6 million is property taxes. The revenue projections are up from the $16,223,555 in projected tax revenue in FY 2025, of which $9.1 million was projected property taxes for FY 2025.
Millage Rates
- Compared to ‘everybody else’ : Statesboro is 8.625 mills (Bulloch is 11.35 and BOE is 7.392 mills)
- Not proposing a property tax increase in this budget, but not recommending the city roll it back either
$1.1 million for every mill assessed by the city
Highest rate in 8.625 in 2025, lowest rate was 6.358 from 2008-2018
- 10% fee increase for all water & sewer funds – previous increases were only for wastewater, not water rates which haven’t been increased since 2012. The proposal is for both.
- 10% increase on stormwater fund from $5 to $5.50 to maintain fund reserve and implement capital projects
- 10% increase for Gas Distribution charges for system growth and expansion
Also anticipated is approximately $1 million in interest earning to balance the budget. Prior to FY 2023, the city was averaging less than $25,000.
Penny offered caution on balancing the budget with interest, however, because interest rates can change.
Expenditure Review
- $928,755 in Fund Balance to Balance the General Fund
- Maintain 25% targeted fund balance.
- 64.8% of the General Fund is Salary and Benefit costs
Penny said the city cannot determine what the ending fund balance will be for FY 2024 because the fiscal year is not complete.
Increased expenditures (not total costs – these are increases over last year)
- $1,227,000 salaries and benefits
- $70,000 credit card fees
- $95,000 police cloud storage
- $60,000 police taser contract
- $90,000 for street lights
Capital Project Priorities
- Housing Rehabilitation – hope is to apply for CBDG grants to assist
- Sewer installation in unserved areas – ARPA funds have assisted with this initiative
- Enhance roadways, sidewalks, and intersection improvements to accommodate growth.
You can view the full budget presentation below. The complete budget as proposed is not yet available online, but will be published by the city as council works through the budget process. A paper copy will also be available at city hall.
A public hearing is scheduled for June 3 with final adoption slated for June 17.
