Powder Springs budget approved at $11.5 million

Following the third reading and third public hearing on June 17, the Powder Springs City Council voted 5-0 to approve the city budget that will go into effect July 1 to June 30, 2020.

Their ordinance says the budget “includes an increase in the compensation of the municipal governing authority in its new term” which would begin on Jan. 1.

However, in an email on June 19, Powder Springs City Manager Pam Conner told The Atlanta Journal-Constitution that the budget ordinance does not change the salaries of the mayor and City Council.

Their salaries “would remain the same unless they take some action to change,” she said.

Since 2005, their annual pay has remained at $18,000 for the mayor and $12,000 for each of the five City Council members, Conner added.

Also during the new budget year, each Powder Springs household is expected to pay $12 more - as an annual charge - for storm water management services.

Including six months of reserves, the balanced budget is $11,512,710 and based on the current millage rate of 9.5 mills.

Including 87 city employees, the Fiscal Year 2020 budget includes $5.1 million for pay, healthcare benefits and retirement contributions for all employees which is 45 percent of all major fund budgets.

Also, the budget includes an incentive structure for employees that will add about $92,000 to the annual budgets.

The cost of all employee benefits is estimated to be $900,000 with retirement contributions at $252,000 for all funds.

Among other major changes to the Fiscal Year 2020 budget are:

• Maintains employee health care costs of approximately $550,000 per year through the plan year with Kaiser. Increases will be capped at 8 percent renewal in April 2020.
• Establishes a proposed 2.8 percent cost-of-living increase in January 2020 for all staff, excluding the city manager, with a retention pay out in July for all staff of $95,000.
• Hiring seven more employees across Public Safety, Community Development, Economic Development, Parks and Rec, Finance and Administration.
• Retains professional services to use experts to best address delivery of city services.
• Implements Community Development Software to streamline planning.
• Increases Facilities Improvement Budget by $50,000.
• Funds general election expense for November 2019.