City Budget – City of Walhalla

Part 1: General Fund Revenues

Let’s start with a look at where the money comes from. All the numbers listed are projections and may change as the fiscal year goes on, but this is the foundation on which we build the budget.

Property Taxes account for 24% of our general fund revenues, about $1.02 million.
Sanitation Fees, about $1 million, makes up around 23% of general fund revenues.
Business Licenses is projected to be around $625,000 in FY 2026, accounting for 15% of the general fund revenues.
Local Receipts, which make up 12% of the general fund revenues, are things like building permit fees, fines, accommodation taxes, recreation fees, park admissions and other monies that residents (and non-residents) pay to the city. The total dollar amount of local receipts in FY 2026 is projected to be around $500,000.
Other Funding Sources includes things like franchise fees, grants, sale of capital assets and other miscellaneous income. The total from Other Funding Sources in FY 2026 is about $1.09 million, 26%.

Other funding that contributes to the General Fund are transfers from the Hospitality Tax fund to cover tourism, events and recreation expenses; and the Utility Fund to cover shared resources/general overhead.

Part 2: General Fund Expenses

The next question to address, after learning where revenues come from, is how that money is spent.

Below is a general breakdown of spending by department for the FY 2026 draft budget:

Administration – $6,462,950
Police – $1,390,000
Sanitation – $877,000
Streets & Facilities – $1,265,450
Fire – $1,124,600
Recreation – $636,700
Court – $86,500
Depot – $9,000
Pool – $9,000
Stumphouse Park – $100,000
Retiree Healthcare – $20,000
Capital Improvement – $250,000

The pie chart below groups expenses by function.

Here’s a bit more detail about what each “slice” includes:

Administration: This slice covers the functions/expenses for Administration/Finance, City Attorney, Human Resources, Planning & Zoning, Business License, HTAX/ATAX, City Council and other administrative services for the entire City. This slice also includes capital improvements and retiree healthcare expenses.
Public Safety: This slice covers the functions/expenses for all Police and Fire, including EMT and other services for the City, such as IT, fleet management, and oversight of the Stumphouse Mountain Park. This slice also includes the expenses related to the Municipal Court.
Public Works: This slice covers the functions/expenses for all Sanitation/Solid Waste and Streets & Facilities. In addition to the residential and commercial sanitation services, offerings include debris removal, recycling oil, the maintenance of City buildings and grounds, paving, sidewalk repairs, storm response and more.
Parks, Recreation and Tourism: This slice covers the functions/expenses of recreation, specifically youth sports and staffing. Expenditures related to City sponsored events, tourism and beautification efforts, as well as the City Pool, Depot and Stumphouse Mountain Park are funded from the Hospitality Tax Fund.

Of these expenses, the largest component is wages/benefits.

Part 3: Enterprise Fund Revenues

Enterprise funds exist for a specific purpose, in this instance the water and sewer system. Projected FY 2026 revenues are below:

Water Enterprise Budget – $5,615,000
These funds are generated through water sales, tap fees and connection/service fees.

Sewer Enterprise Budget – $250,000
These funds are generated through sewer user fees and tap fees.

These funds are generated from user fees, both a base rate and volumetric rate for the use of water and collection of wastewater, tap fees, fire sprinklers and other connection and service fees. Another $35,000 is expected in telecommunication revenues.

With an enterprise fund, users pay directly for day-to-day operations of the water and sewer systems. As the term “enterprise” suggests, these funds run like small businesses.

Part 4: Enterprise Fund Expenses

The Enterprise Fund expenses cover the maintenance of the water and sewer system.

Below is a general breakdown of spending by department for the FY 2026 draft budget:

Water Crew – $2,994,350
Water Plant – $2,334,250
Billing – $ 358,150
Sewer – $213,250

The pie chart below groups expenses by department.

Water Crew expenses include the maintenance, repair and replacement of the distribution lines in the water system.
Water Plant expenses cover the treatment of the water at intake prior to its distribution, as well as bond payment obligations for the new water treatment plant.
Billing expenses include the preparation of monthly bills, new taps and accounts, work orders and customer service.
Sewer expenses cover the maintenance, repair and replacement of the sewer collection lines within the City’s system. Oconee Joint Regional Sewer Authority (OJRSA) is responsible for the treatment of sewer in Oconee County.

The largest expense item in the Enterprise Fund includes maintenance for the water and sewer system (34% of the total Enterprise budget). Staffing costs account for 32% of the Enterprise total budget, followed by the bond payment for the new water treatment plant (22.2%). We must continuously maintain, repair and replace our water mains and other parts of the system. In FY 26, additional capital funds (2.5%) are proposed to replace water meters, as part of an on-going meter change-out project. Over 2,000 meters have been replaced to date, of the approximate 6,000 in the system. Finally, 9.3 percent of the budget goes to indirect costs. This covers the cost of services provided by our other city departments, that handles accounts payable, payroll, legal, facility maintenance, as well as certain capital expenses and assistance in line maintenance.

Part 5: Special Revenue Funds

Coming Soon

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