Key points:
• The Sandy Springs City Council will approve a proposed budget for fiscal year 2027, totaling $1.15 billion, after two public hearings in June.
• Since its incorporation in 2005, Sandy Springs has invested more than $500 million in capital projects, including roadway expansions, sidewalks, paths, and parks.
The Sandy Springs City Council met with staff for a third and final budget workshop on May 26, reviewing operating costs, tax revenues, and fiscal pressures.
Despite uncertain economic headwinds, next year’s proposed operating budget is balanced. The city has 25% of its annual revenues, or about $35 million, in its reserve or general fund balance.
Forecasting revenues, property taxes
The proposed fiscal year 2027 budget, running July 1, 2026, through June 30, 2027, has an operating budget of just over $170 million. In the current fiscal year, which wraps at the end of June, the city projects it will spend about $145 million.
The first public hearing is at 6 p.m. on June 2. At the final public hearing on June 16, elected officials are expected to vote and approve the fiscal year 2027 budget.
Sandy Springs officials conservatively estimate revenues, most of which come from property taxes. For example, officials projected the city would collect about $115.5 million in taxes when creating the 2026 budget. Now, they estimate the city will collect $128.8 million in property tax revenue this fiscal year.
Despite a nearly 10% gap between actuals and forecasts, city officials are projecting $124.5 million in revenue next year.
While the city’s operating budget is about $170 million, its all-funds budget is $1.15 billion after including the Sandy Springs Public Facilities Authority’s $675 million.
City Manager Eden Freeman, who spearheads the city’s budget process with Mayor Rusty Paul, said the all-funds figure is misleading.
“The reason it is so large is because of the way we come to account for the debt that was issued for this campus [City Springs], for police headquarters, after all of our fire stations,” Freeman said. “The public facilities authority is what is bumping our all-funds number up. We are unable to reduce that number until we fully pay off the debt on those.”
With $50.5 million in new debt issued for three new fire stations last summer, the city’s annual transfer from its operating fund to the public facilities authority is projected to increase from $12.6 million to $15.5 million next fiscal year.
On the Sandy Springs radar
Freeman said Sandy Springs officials project hotel/motel tax revenue will decrease to about $5 million in fiscal year 2027. The city projects a second consecutive year of declining revenues, “given changes to travel and the economy.”
Diving into the city budget and its specific funds reveals a decrease in consumer spending. City officials expect the Sandy Springs Performing Arts Center to collect $7.45 million this fiscal year, representing another year-over-year decline from $8.09 million in fiscal year 2024.
After a question about the performing arts center’s declining revenues, Freeman said city officials are seeing the public’s austerity elsewhere. She said it’s getting more difficult for residents and visitors to afford $100 tickets.
“Economic factors … people are not buying as many tickets,” Freeman said. “We’re seeing it across the board, not just for our performing arts center … [we] are working to try to bring in some acts that are going to be a more family-friendly price point to try to make that up.”
Related story:
• Economic outlook: Opportunities and obstacles for U.S. economy in 2026
Freeman shared her “favorite slide,” showing the city’s investments in capital projects, including roadways, bridges, sidewalks, and stormwater systems.
“Since the city was incorporated in 2005, we have invested back more than $500 million in our community,” Freeman said. “This does not include this campus [City Springs], the police headquarters and municipal court complex, or any of our fire stations. That is money that would have been spent in other parts of Fulton County had Sandy Springs not been incorporated.”
