Dunwoody's 2027 budget would draw $2.8M from reserves

Dunwoody’s proposed budget for 2027 would spend about $2.8 million more on day-to-day city services than the city expects to take in. The gap would come out of reserves.

The city released the Fiscal Year 2027 proposed operating and capital budget on Sept. 28. Mayor Lynn Deutsch and City Manager Eric Linton presented it. The City Council holds two public hearings on it in November before a final vote.

“The City remains in a strong financial position as it heads into FY2027, with a focus on staying adaptable for the future,” Deutsch and Linton wrote in their budget letter. “However, some major revenue sources are showing slow revenue growth while inflationary pressure continues to push expenditure categories higher,” they wrote, as quoted in the city’s announcement.

The headline numbers

The whole budget is $64.4 million. That is 26.3% less than this year’s amended budget of $87.3 million. The budget letter says most of the drop is one-time money running out:

• federal American Rescue Plan funds, the first special purpose local option sales tax (SPLOST I) and capital reserves being spent down on projects
• $8.2 million of reserves the city moved into capital projects this year, including $5 million for parks, $1.5 million for public works and $800,000 for police

Unspent project money from this year will be added to the 2027 budget once the books close, the document says. Most of the drop is project money, not day-to-day spending.

The general fund, which pays for police, parks, street repairs and city offices, is proposed at $41.2 million. That is down 10.8% from $46.2 million, again because of this year’s one-time transfers.

Spending is growing faster than revenue

Strip out the one-time items and the picture is tighter:

Those figures come from the general fund summary in the proposed budget. The city charter requires four months of reserves. Six months is “two months higher,” the budget letter says, and is there to cover emergencies and revenue shortfalls.

On the revenue side, the budget expects:

• real property tax of $11.35 million, $458,000 less than this year’s amended figure of $11.81 million
• insurance premium tax of $6.09 million, up $290,140
• electric franchise fees of $4.08 million, up $156,920
• investment income of $555,200, down 20%

The document does not explain the lower property tax figure. Our property taxes page explains how DeKalb County bills Dunwoody homes.

Where the money goes

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The Police Department is the biggest line by far. Its general fund budget rises 12% to $16.23 million, up $1.74 million. Counting money from other funds, the city puts total police funding at $17.5 million.

Other figures in the city’s announcement:

• $13.4 million for roads, stormwater and other capital projects, including SPLOST and grants
• $5.9 million for parks facilities, programs and capital work

Staff pay and benefits make up 56.5% of the general fund. The budget includes a salary increase from July 1, 2027, and assumes health care costs rise 8%. The city spends an average of $31,400 a year per participant on health care, the document says.

What it means for you

• You can speak at either hearing. Both are at 6 p.m. at City Hall, 4800 Ashford Dunwoody Road: Monday, Nov. 16, and Monday, Nov. 30. Final adoption follows the hearings, the city said.
• Read it first. The full document, with every department’s line items and the city’s fee schedule, is on the city’s budget page.
• Reserves stay above the legal floor. Even after the draw, the city would hold six months of spending, two more than the charter requires.

Who to contact at City Hall is on our who to call at City Hall page. Permits and zoning are covered on our building permits and zoning page.