Baldwin moves 2027 budget toward adoption with modest surplus

BALDWIN, Ga. — The City of Baldwin moved closer to adopting its fiscal year 2027 budget Tuesday night, presenting the first detailed financial picture of the spending plan and outlining a projected small surplus as officials continue working to resolve accounting issues uncovered earlier this year.

City leaders reviewed the budget during a special called meeting and second public hearing at the Baldwin Municipal Courtroom, where Finance Director Angela Adams presented updated revenue and expenditure estimates and described ongoing efforts to clarify the city’s financial records.

No members of the public signed up to speak during the public hearing, and no residents were in attendance when the meeting opened. The council kept the hearing open for approximately 25 minutes, but no one from the public came forward to comment on the proposed FY 2027 budget.

First full FY 2027 numbers presented

Adams told the council the proposed budget assumes no change in the current millage rate and projects about $8.79 million in revenue and roughly $8.74 million in expenditures, resulting in a small surplus of about $43,800.

“Right now we are at a small surplus,” Adams said.

The presentation marked the first time the public has seen detailed FY 2027 figures as city officials continue a comprehensive review of prior-year finances and revenue sources.

Accounting cleanup and restricted funds

Adams also detailed continued efforts to restructure how the city tracks and reports its finances following the discovery of accounting gaps in prior years.

She said the city is working to separate and clearly identify restricted funds, including school zone funding, legacy-related accounts and other designated revenue sources, so officials can better distinguish between available and restricted cash.

The changes are part of a broader effort to produce more accurate financial statements for fiscal year 2026 and beyond, Adams said.

She also said a review with City Engineer Fletcher Holliday resulted in confirmation of water and wastewater budget assumptions, with no significant changes made to those funds.

The only notable adjustment to the proposed budget was the addition of excise tax revenue that had not previously been included, which the city plans to invoice.

Staffing changes and employee pay

City Manager Tiera Morrison said the proposed budget includes a reallocation of staffing positions across departments, including the restoration of an administrative assistant position in general administration and the elimination of a front-desk position in the Public Utilities Department.

Morrison said the change reflects an effort to better align staffing levels with workload demands.

Councilman Joe Elam asked whether the adjustment was intended to “right size” staffing, to which Morrison responded yes.

The budget also includes a 3% cost-of-living adjustment for all city employees.

Council response and fiscal outlook

Councilman Joe Elam said the budget process reflects the council’s effort to align spending with available revenues.

“My primary job here, and I believe my reason I was elected was to right size the budget,” Elam said. “I think they’re honoring facts.”

Councilman Erik Keith said the improved financial clarity marked a major change from earlier budget uncertainty.

“Before, a lot of this stuff was just inflated or not in the right spot,” Keith said. “It makes all the difference in the world.”

Elam added that the improved numbers make budgeting decisions easier and said the council may eventually be able to begin funding a rainy day reserve if additional surplus materializes.

Mayor: budget reflects financial turnaround

Mayor Doug Faust said the council will meet again June 23 for a special called meeting to consider final adoption of the FY 2027 budget.

That meeting will also include discussion of Banks County Local Option Sales Tax (LOST) allocations and the intergovernmental agreement governing distribution of funds.

Faust also said Habersham County is moving forward with a Floating Local Option Sales Tax (FLOST) proposal, which could eventually be used to offset property taxes. He said the program would take up to a year and a half to implement.

In comments following the meeting, Faust credited city staff — particularly Adams — for helping stabilize the city’s financial picture.

“Miss Adams has dug into the budget, dug into our revenue sources, looked at our banking records… and now that we have a surplus, that’s absolutely amazing,” Faust said. “I’m stoked.”

Next steps

The council is expected to consider final adoption of the FY 2027 budget at its June 23 meeting.