Alpharetta Council reviews budget constraints amid floating homestead tax challenges

Alpharetta City Council members are grappling with budget constraints as they prepare for the upcoming fiscal year, following a meeting on May 19, 2025. The council discussed the implications of a flat commercial growth rate and the impact of the floating homestead exemption, which limits property tax increases to 3%. This policy, while beneficial for homeowners, has led to tighter budgets for the city, as revenues have not kept pace with inflationary pressures on salaries and operational costs.

City finance officials indicated that the current budget is projected to remain around $5 million, significantly lower than previous years when the fund balance reached upwards of $10 million. The council acknowledged that the inability to raise property tax revenues has resulted in challenges for funding capital projects, including maintenance of roads, sidewalks, and parks.

To address these financial constraints, discussions included the potential implementation of an occupational tax to bolster capital funding. The council is also looking forward to the anticipated TSPLOST (Transportation Special Purpose Local Option Sales Tax) revenues, which could alleviate some pressure by providing additional funds for infrastructure projects without directly impacting property taxes.

The council emphasized the importance of proactive budget discussions to avoid future shortfalls and ensure that capital maintenance and improvements can be adequately funded. As Alpharetta continues to grow, the council's decisions will play a crucial role in balancing the needs of the community with fiscal responsibility. The next steps will involve presenting a comprehensive project list for TSPLOST 3 to residents, aiming to secure their support for future funding initiatives.