During a hearing on the proposed budget for FY2027, Statesboro mayor Jonathan McCollar pointed at county officials as the cause of the anticipated millage rate increase in the city limits.
Tuesday’s council meeting included a public hearing on the proposed budget set to be voted on by city officials at the second meeting in June. City Manager Charles Penny presented the draft version with a powerpoint, offering highlights and justifications for what is to come.
Specifically, the anticipated millage rate increase of a little more than two mills will increase property taxes almost $350 annually on a $225,000 home with a homestead exemption.
Penny said the city’s budget totals $111.3 million, an approximate 5% increase over the FY2026 budget of $106.9 million. He described the budget as balanced and focused on public safety, employee retention, utility infrastructure, and preparing for continued growth.
Key Points from the presentation:
- Operating expenses are increasing while capital spending declines slightly from FY2026 levels.
- General Fund operating expenses rise from approximately $24.0 million to $25.2 million.
- To balance the FY2027 General Fund budget, the city proposes using $205,210 in fund balance.
- The city’s major operating funds ended FY2025 with a combined fund balance of approximately $50.7 million, up from $48.1 million in FY2024. The largest reserves are held in:
- Water & Sewer Fund: $19.0 million
- Natural Gas Fund: $10.1 million
- Stormwater Fund: $8.2 million
- General Fund: $6.85 million
- An expected 22.8% overall increase in General Fund revenues is anticipated.
- The budget projects approximately 10% growth in the property tax digest, which officials cite as a major contributor to revenue growth.
- A 2% pay plan adjustment is included with continued pay-for-performance raises
- Funding for an expected 15% increase in employee insurance premiums
- No planned increases for water and sewer rates.
- Water and Sewer Fund revenues increase from $16.3 million to $18.2 million, while operating expenses rise from approximately $12.0 million to $12.4 million.
- Still, Penny told council that the need to prepare for a $100,000,000 wastewater treatment plant is ahead.
- No increase in natural gas rates
- No increase in stormwater rates
- No increase in Solid Waste Collection or Disposal fees, but a need exists to expand the inert landfill
Major expenditure increases include:
General Fund salaries and benefits: +$803,581
Fire Fund salaries and benefits: +$252,937
Police Flock camera equipment: +$170,000
Streetlight electricity costs: +$100,000
Credit card processing fees: +$80,000
FUSUS public safety technology contract: +$80,000
According to the budget presentation, 75.7% of the combined General Fund and Fire Fund budget is devoted to salaries and benefits.
Penny said in order to balance the FY 2027 budget, a 2.129 mill increase will be required. “This is due to the County’s decision to dissolve the Fire District. This year FLOST is estimated to be $1.4 million. The increase will be offset next year by the FLOST funds, which are estimated at $3.5 million,” his presentation read.
Fire Department Expenses
Mayor Jonathan McCollar said Tuesday that the dissolution of the fire department agreement is why the city was slated to increase the millage rate.
“If the agreement between the city and the county had not been abruptly dissolved after 47 years, we would be rolling our rate back today from 8.625 to 7.225. That was an agreement that was in place for 47 years. Eighteen months ago, we warned the community that that was a move that was going to increase the cost of fire and be a heavier burden for all citizens in Bulloch County and eighteen months later that’s where we are.”
One of the most notable changes is a dramatic increase in support for the Statesboro Fire Service Fund. In the proposed budget, the transfer from the General Fund to the Fire Fund rises from $3.2 million to $7.48 million, an increase of more than $4.2 million, accounting for the anticipation of $2.76 million lost in in Fire District tax revenue.
It also accounts for:
- the expiration of a federal SAFER grant
- continued staffing of 69 firefighters
- the addition of of 4 dispatchers for fire ground management
- opening of Fire Station No. 3, expected in late summer 2026 and funded through SPLOST revenues.
The Fire Fund will also repay loans received from enterprise funds over a ten-year period, including $1.8 million from the Water & Sewer Fund, $707,000 from the Solid Waste Collection Fund, and $680,000 from the Natural Gas Fund.
Other Budget Notes
Penny told council that the capital project priorities in FY 2027 include:
- Housing Rehabilitation
- Sewer Installation in Unserved areas
- Enhancement of roadways, sidewalk installation, and improved intersections to accommodate growth
He also lamented that the city must ‘continue to expand the tax base’ through voluntary annexations and new commercial and retail developments.
Councilwoman Shari Barr said she believed the budget was better than it was a few weeks ago when the process first began and the anticipated increase is less than initially believed. She thanked staff for their efforts.
No one from the public was present Tuesday to speak for or against the proposed budget.
Another public hearing is slated for June 16 ahead of the council vote to adopt the budget during the same meeting.
