By Rebecca Gaunt

The city of Kennesaw held the first public hearing for the proposed 2026 $34.38 million operating budget last week.

The budget has undergone adjustments since it was first presented in July, including an overall decrease from the original recommendation of $34.56 million. 

The updated budget is a 7.13% increase over the 2025 budget and maintains last year’s millage rate of 7.75 mills.

Due to slowing development, revenue streams from permits, intangible taxes, and other sources are predicted to decrease. However, costs such as employee health insurance, maintenance, and supplies are rising, making the budget “the most financially constrained and challenging in recent memory.”

Uncertainty about tariffs, high interest rates, and inflation were also factors, according to budget documents.

Seven months into the 2025 fiscal year, building permits, architectural plan review services, plumbing, HVAC, grading, and electrical permits are only at 44% of the projected revenue. Annual revenues for these six items were projected to be $842,000. Actual revenue at seven months into FY 25 is $371,436.

Revenue streams from business taxes, alcohol sales, and recreation program fees remain steady.

Highlights of the FY 2026 budget include: 

•Property tax revenue budgeted at a 2% increase

• Council approved bond millage rollback to 1.4 mills from 1.5 mills

• $395,581 to fund the city’s reserve account

• A 3% cost of living adjustment for staff

• Salary budgets in all departments include budgeting the cost of employees selling sick & vacation time as allowed by city policy

• Projected benefit and health care costs increased by approximately 7% and retirement

contributions decreased by approximately 5%– both are spread throughout each department

The proposed budget allows for the hiring of a full-time building maintenance custodian and a full-time horticulture technician at Smith-Gilbert Gardens. It also adds two part-time seasonal positions in the parks and recreation department.

No citizens spoke on the matter at the first hearing, but there is another opportunity at the next hearing scheduled for September 15 at 6:30 p.m. at City Hall in the City Council Chambers.