End-of-Year Finance Update for the City of Sugar Hill
The city ended 2024 in a strong financial position.
Hey everyone. I hope you are well and enjoying a new year.
As we are starting a new year, I would like to take several minutes to provide you with a finance update for the City of Sugar Hill. I just finished my third year as Mayor, and our finances continue to be strong and healthy.
We ended 2024 strongly, with nearly $37.8 million cash-on-hand and a fund balance of $24 million. I am most proud of the fact that we currently have $14.5 million in unrestricted reserves. Our reserve fund is our city’s rainy-day fund and savings account, which we have continued to grow each year due to our fiscally conservative budgeting habits. In 2004, the city adopted a policy stating it was the city’s goal to maintain an amount of at least 20% of the annual budget, with a recommended level of 30%, for unbudgeted reserves for contingencies, Capital Improvement Projects, and undefined projects. We have actually set aside, in reserves, nearly 100 percent of our annual operating budget. The city also ends 2024 with over $300 million in city-owned assets, which includes the E-Center, the Eagle Theatre, and other past and recent community investments.
In December 2024, the City Council approved, and I signed a 2025 General Fund Budget that totals just over $16 million. This is $2.3 million less than the 2024 General Fund Budget. The overall budget also includes additional funds from SPLOST and other revenue sources in the amount of approximately $34.4 million to make a total budget of $50.6 million. It includes community investments, in a five-year capital plan, for new parks and other amenities that help us continue to move forward as a live, work, and play community.
As a city, we will soon begin working on our annually required financial audit for 2024. This annual audit is completed by a third-party auditing firm, and I am confident that, as in the past several years, we will achieve an unqualified result. An unqualified audit is great, because the auditor is stating that they have reviewed and analyzed the books of account of the city and can say, without qualification, that they are accurate, sound, and meet all legally required standards.
As 2025 begins, we continue to make progress paying down our mortgage on the E-Center, Solis Parking Deck, and Solis Commercial Spaces. Looking back on the decision made by the City Council to first issue municipal bonds in 2016, had we waited, the E Center, Gym, the Eagle Theatre, and nearly all our Downtown Sugar Hill commercial, retail, and restaurant activity would still be a dream and an aspiration because the cost to build would have outpaced any pay-as-you-go savings plan. As of the end of 2024, the city has paid nearly $41.1 million in principal and has only $30.1 million left on the mortgage. A portion of the mortgage will be paid off in 2033 and completely paid off in 2035.
This financial success also includes savings for the residents of Sugar Hill. In 2023, the City Council approved, and I signed a cut from 3.80 mils to 3.69 mils. In addition, in 2024, the City Council approved, and I signed a cut from 3.69 mils to 3.50 mils. This is in addition to homestead exemptions approved in 2023 that increase the city’s general homestead exemption and senior homestead exemption from $2,000 to $10,000. Prior to these last two reductions, the millage rate remained level at 3.80 mils for nineteen consecutive years. I am proud to say that these last two years of millage rate reductions coupled with homestead exemption changes are the only, much less largest tax reductions in nearly 20 years, providing much-needed relief to the pressures of economic growth in Gwinnett County.
I am excited about our financial strength and health as a city. Our financial successes would not be possible without a dedicated team of elected officials, as well as city employees led by our City Manager and executive team. Please reach out to me if I can answer any questions, and I look forward to an amazing 2025 for the City of Sugar Hill.