Stronger sales tax collections, increased water and sewer revenues and rising expenses for open records requests were among the topics discussed as the City of Rome Finance Committee reviewed the city’s July 2026 financial statements during its Aug. 26 meeting.
Finance Director Toni Rhinehart presented an overview of the city’s major funds, highlighting revenue trends, spending levels and potential budget adjustments as the city moves toward the end of the fiscal year.
Local Option Sales Tax revenue continued to perform well, bringing in $880,000 in July, compared with $849,000 during the same month last year. Revenue from the Georgia Power franchise fee also increased, reaching $3.5 million in 2026 compared with $3.3 million in 2025.
However, real estate transfer tax collections were down more than $49,000 from the previous year. Business license revenue also declined slightly, while facility rentals and City Auditorium revenue increased. Rhinehart attributed the auditorium’s improved performance in part to recent cosmetic improvements.
Red Speed fines were up from last year, while traditional police fines and interest earned on investments were down. The city continues to earn approximately 3.5% interest on investments.
Open records requests drive administrative costs
Several departments may require budget adjustments before the end of the year, Rhinehart said. General Administration will need a budget revision because it is currently over budget, primarily due to expenses associated with open records requests.
More than $40,000 has been spent in 2026 on legal expenses related to those requests.
City Manager Sammy Rich explained that some records requests can be handled by city employees at no cost to the requester, while others require the city attorney to conduct research, provide legal opinions or redact information.
Although city staff generally do not charge for their time, some requests require additional legal review, Rich said.
Other departments may see adjustments in either direction. The City Manager’s Office could require a small adjustment because of a position change, while the Clerk’s Office and Finance Department may be reduced slightly.
The City Commission appears to be near its budget limit, Rhinehart said, although significant training and education expenses remain. Some costs incurred late in the year must be recorded in December as part of the city’s year-end closing process, even if the payments occur later.
Public Safety spending was higher than at the same point last year but remained below the year-to-date budget. Rhinehart noted that payments to the Floyd County Jail for inmate services pushed the department over budget at the end of 2025.
Rich explained that the city must pay the county for jail services because Rome does not operate its own jail. City Clerk Joe Smith added that money collected from traffic tickets is divided among several entities, including the state police pension fund, training programs and jail operations.
Water and sewer revenues continue to grow
The Water and Sewer Fund reported operating revenues of $17.1 million in 2026, up from $16.1 million in 2025. Sewer revenue was above both the previous year’s figures and the year-to-date budget.
Committee members discussed how new subdivisions and continued development could affect water usage, revenue and future budget needs.
Rhinehart also reported that approximately $9 million remains to be received from the expected $184 million settlement. Interest earned on the settlement funds has totaled approximately $22 million, providing additional resources to help cover construction expenses.
In other areas, Building Inspection Fund permit revenue was down from 2025, as expected. Expenses were slightly over budget, but accumulated fund balance earmarked for the fund is being used to offset the increase.
Transit Fund revenue remained consistent, with fares generating approximately $7,500 per month. Paratransit revenue also remained steady, and expenses were in line with expectations.
Tourism and golf revenues show gains
Tourism Fund revenue was higher than last year, reflecting operations and rentals associated with the city trolley, campground, History Museum and History Center.
Hotel and motel tax revenues were also higher than expected. Rhinehart said the increase did not appear to be tied to an increase in available hotel rooms. Instead, weekday conferences at The Forum and additional weekday events at the Tennis Center may be contributing to the growth.
The committee also discussed the possibility of placing a marketing sign in a central location in the city. Rhinehart said the idea was under discussion.
The Golf Fund reported $1.2 million in revenue through the end of July, compared with $1.094 million during the same period in 2025. Although expenses were higher than last year, they remained below budget, leaving the fund with a gain of approximately $83,000 for the year.
The Health Insurance Fund reported claims and expenses above 2025 levels but below budget. Year-to-date revenue was slightly behind budget while remaining ahead of the previous year.
Rhinehart cautioned that the final three months of the year typically bring the highest insurance claims. The city needs to build its cash balance to cover those costs without requiring a transfer from the Workers’ Compensation Fund.
SPLOST projects move forward
The committee received updates on projects funded through Special Purpose Local Option Sales Tax revenue.
Rich reported that renovations to the Clocktower funded through the 2023 SPLOST program have been completed. The Jackson Hill Trail contract and the Enterprise Corner water contract were authorized earlier in the week.
Work at Eagle Park is awaiting further funding arrangements, with Purchasing Director Becky Smyth expecting an update in September.
When Commissioner Jill Fisher asked whether any 2017 SPLOST funds remained, Rhinehart said those funds had been depleted. Money remains available from the 2013 SPLOST program for the Unity Point/South Broad bridge project.
The committee also briefly discussed the Tax Allocation District fund and zoning regulations.
Retirement costs and future budget planning
Rhinehart reported that the city had received its GMEBs report, which showed an $839,000 increase in the required retirement contribution for 2027.
Capital budget forms are expected to be distributed to city departments within the following week, with submissions typically due around the beginning of October.
The committee also discussed the Solid Waste Commission Fund. In response to a question from Commissioner Fisher, Rhinehart said approximately $24 million in interest-earned funds is available for Phase 9 of the landfill, which is currently under construction.
Commissioner Bill Collins asked how artificial intelligence is being incorporated into city operations. Rich said AI-related spending is distributed across various department budgets, so a separate, citywide AI budget line is not necessary.
The possibility of adding another indoor tennis facility also came up. Rich said the issue is being discussed with the director of tourism. Public Relations representative Doug Walker noted that Rome lost revenue last year when weather-related tournament cancellations could not be accommodated because of a lack of indoor courts.
Collins also requested that the city devote more attention to revitalizing the South Rome Community Center during a discussion of the General Fund’s Diversity Programs line item. Rhinehart explained that the funding primarily supports citywide events, including Martin Luther King Jr. Day activities, international events and festivals.
The committee additionally discussed the proposed City of Rome Enrichment Grant Program, or COREG, which was presented to commissioners during a recent retreat. Rich said the program would need to go before the full City Commission for consideration and a vote after review by the city attorney. Director of Strategic Initiatives Kelley Ledford outlined the program and its potential benefits.
The meeting concluded with Rhinehart indicating that a possible budget revision would be discussed at the committee’s next meeting.
Committee Chairman Wayne Robinson presided over the meeting, which also included commissioners Fisher and Collins and other city officials. The committee approved the minutes of its July 10 meeting by common consent before adjourning.
