2026-09-29 · City Council · Agenda Packet · Work Session Meeting · Agenda Packet

STOCKBRIDGE CITY COUNCIL Mayor At–Large Work Session Meeting Agenda September 29, 2026 6:00 PM Vacant Mayor Pro Tem Elton Alexander Council District 5 Councilmember LaKeisha Gantt Council District 1 Councilmember Antwan Cloud Council District 2 Councilmember Kyle D. Berry, Sr. Council District 3 Councilmember Yolanda Barber Council District 4 CITY MANAGER Stockbridge City Hall Shawn Edmondson 4640 N. Henry Blvd. INTERIM CITY CLERK Stockbridge, GA 30281 Cassandra Lester CITY TREASURER Frank Milazi CITY ATTORNEY Quinton G. Washington Website: www.stockbridgega.org Phone: 770-389-7900 Fax: 770-389-7912 Translation and Interpretation Services are available with (7) days prior notice. Please contact the City’s Human Resource Manager at 770-389-7908 for assistance. AGENDA WORK SESSION MEETING CITY OF STOCKBRIDGE TUESDAY, SEPTEMBER 29, 2026 6:00 PM CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL ADOPTION OF THE AGENDA REVIEW OF THE MINUTES 1 Review the meeting minutes of: August 25, 2026, Work Session; September 12, 2026, Investigative Hearing; September 14, 2026, Council Meeting. PUBLIC COMMENTS - All persons wishing to speak for public comment must sign in with the City Clerk prior to the beginning of the meeting. You must sign your name, address, and phone number. You will be able to address the Mayor and Council for three (3) minutes. Speakers must respect all members of the elected body, officials, and staff. Defamation, unruliness and/or swearing will not be tolerated while meetings are in session. PRESENTATION 2 Council consideration for 2025 Audit Report Approval. - Presented by: Frank Milazi NEW BUSINESS 3 Council Consideration to approve the first (1st) of four (4) one-year renewal options for Request for Proposals No. 2025-0007 with Crabapple Landscape Experts, Right-of-Way Maintenance and Other Services for the term of January 1, 2027 through December 31, 2027 in the amount of $197,040.00. Council approved the award through Resolution R25-1851. Funding Source: Account Number 100-42200-522000 (ROW Maintenance) in the Public Works budget. - Presented by: Decius Aaron 4 Council consideration to approve the contract with Dianna Hunt & Associates, Inc. to provide acquisition services for approximately 52 parcels in connection Page | 3 with the Neighborhood Legacy Project right-of-way acquisitions in the amount of $140,400.00. Funding source is TSPLOST Account Number 335-42500541436. - Presented by: Decius Aaron and Jeremy Andrews. - Presented by: Decius Aaron 5 Council Consideration to approve Change Order No. 1 with East Coast Grading, LLC in the amount of $140,131.00 for the resurfacing of the Merle Manders Conference Center parking lot. Funding source is from SPLOST VI account number 321- 15650-541331. - Presented by: Decius Aaron, Public Works Director. - Presented by: Decius Aaron MAYOR'S COMMENTS (MAYOR PRO TEM ELTON ALEXANDER) EXECUTIVE SESSION (Exemptions to the Georgia Open Meetings Acts) ANNOUNCEMENTS OF UPCOMING MEETINGS & EVENTS City Council Meetings are held on the second Monday of each month, and Work Sessions are held the last Tuesday of the month at the Stockbridge City Hall - City Council Chamber. Meeting times and dates may change. Please visit www.stockbridgega.org for updates. The City of Stockbridge adheres to the Americans with Disabilities Act (ADA). If you need auxiliary services to participate in the meetings, please contact City Hall at 770-389-7900 in advance. ADJOURNMENT September 29, 2026 6:00 PM4640 N. Henry Stockbridge, GA 30281 Phone: (770) 389-7900 CITY COUNCIL MEETING SUMMARY MINUTES MONDAY SEPTEMBER 14, 6:00 P.M. Mayor & City Council Vacant – Mayor At-Large Mayor Pro Tem Elton Alexander – Council District 5 Councilmember LaKeisha Gantt – Council District 1 Councilmember Antwan Cloud – Council District 2 Councilmember Kyle D. Berry, Sr. – Council District 3 Councilmember Yolanda Barber – Council District 4 Administration Shawn Edmondson – City Manager Frank Milazi – City Treasurer Cassandra Lester – Interim City Clerk Quinton Washington – City Attorney Mission: To provide visionary leadership and superior municipal services that enhance the quality of life for citizens while creating a welcoming business atmosphere focused on sustainability and expansion of tourism and cultural events. Call to Order Mayor Pro Tem Elton Alexander called the meeting to order at 6:30 PM. Invocation & Pledge of Allegiance The invocation was delivered by Councilmember Kyle D. Berry, Sr. and the Pledge of Allegiance was recited by all in attendance. Roll Call Interim Clerk Lester proceeded with roll call and a quorum was established. Adoption of the Agenda Prior to adoption, the following modifications were approved: Item 1 (2025 Audit Report) was removed due to the auditor's unavailability and rescheduled to the September work session. Item 4 was removed from the Consent Agenda at the request of Councilmember Barber for separate discussion. Items 18 and 19 were removed from the agenda by staff request from Community Development. Motion to remove Item 1 from the agenda was made by Councilmember Berry and seconded by Councilmember Gantt. Motion carried unanimously. Motion to remove Items 18 and 19 from the agenda was made by Councilmember Cloud and seconded by Councilmember Berry. Motion carried. 1|Page The remainder of the agenda was approved as amended with a motion made by Councilmember Gantt; seconded by Councilmember Cloud. Motion carried unanimously. Public Comments Two public comments were received. Kathy Walker addressed the council regarding the proportionality and process of the mayor's removal, questioning whether less severe corrective actions had been seriously considered before removal and raising concerns about the council serving as both prosecutor and decision-maker. Former Mayor Lee Stewart urged the council to commission a forensic audit from an out-of-state firm as a means of establishing transparency and restoring public trust. Ceremonial: Swearing in Ceremony for Youth Council The 2026–2027 Stockbridge Youth Council members were sworn in by Mayor Pro Tem Alexander and signed their certificates of office. Henry County Commissioner Neat Robinson, who was instrumental in founding the Youth Council, offered remarks. Officers for the new term were recognized: Youth Mayor, Mayor Pro Tem, City Manager, and Parliamentarian. Members of the Jonesboro Youth Council and Clayton County Youth Commission were also in attendance in a show of inter-municipal youth support. Presentation 1. Council Consideration for 2025 Audit Report Approval This item was removed from the agenda. The auditor was unable to attend due to an emergency. Mayor Pro Tem Alexander noted that the audit reflects a fund balance of approximately $17,900,000 at the end of FY2025. The item will be rescheduled to the September work session. 2. Presentation Seeking Support to Establish an Externship Partnership Between the City of Stockbridge and the Interactive College of Technology (ICT) HR Director Dwayne Pollock introduced representatives from Interactive College of Technology (ICT), who presented the college's externship program. The program provides students 135 hours of realworld work experience prior to graduation at no cost and with no liability to the city. Councilmember Berry disclosed he is an ICT graduate and business owner in HVAC, a direct result of the program. The City Manager holds authority to sign the affiliation agreement; council approval of support was sought. Motion to approve the externship affiliation agreement with Interactive College of Technology was made by Councilmember Gantt and seconded by Councilmember Berry. Motion carried unanimously. 3. Presentation and Adoption of the Updated Employee Policy Manual HR Director Pollock and consultant Tisha Carter of Quad Vision Consultants presented a comprehensive revision of the Employee Policy Manual. Key updates included modernized employment practices, revised PTO accrual schedules, a PTO buyback program, expanded tuition reimbursement, an employee referral incentive program, updated technology and social media policies, and improved document structure. Councilmember Barber indicated she was not prepared to approve the item that evening and had outstanding questions, including regarding the gifts and gratuities policy. Council agreed to defer the item to allow more time for review. 2|Page Motion to table the Employee Policy Manual to the October regular council meeting was made by Councilmember Gantt and seconded by Councilmember Berry. Motion carried unanimously. CONSENT AGENDA Items 5 through 9 were initially on the Consent Agenda. Item 4 had been pulled for separate discussion. Councilmember Barber subsequently requested the remaining consent agenda items be taken individually. 4. Council Consideration to Approve the First (1st) of Four (4) One-Year Renewal Options for RFP No. 2025-0007 with Crabapple Landscape Experts – Right-of-Way Maintenance and Other Services, $300,000.00 Public Works Director Decius Aaron presented the renewal. Councilmember Barber raised concerns regarding the original procurement process and questioned whether the $300,000 figure reflected the contract amount or a combined budget figure. Director Aaron clarified that the contract itself is $197,000–$198,000, with the balance covering additional right-of-way maintenance items being shifted from the Public Works operating budget to the proper right-of-way account. Councilmember Cloud noted the agenda item should also reflect the word "amend" when a contract amount is changing. The item was tabled to allow staff to return with a cleaner presentation and to address Councilmember Barber's procurement process concerns. Motion to table Item 4 to the September work session was made by Councilmember Gantt and seconded by Councilmember Barber. Motion carried unanimously. 5. Council Consideration to Approve the First (1st) of Four (4) One-Year Renewal Options for RFP No. 2025-0004 with CGS, LLC – On-Call Sidewalk Repairs and Replacement, Not to Exceed $200,000.00 Director Aaron explained that CGS, LLC performs the city's annual sidewalk maintenance and repair program, with city engineering staff identifying damaged or hazardous sidewalks throughout neighborhoods. The approved amount is not to exceed $200,000. A discrepancy between the resolution ($300,000) and the agenda ($200,000) was noted; the correct figure is $200,000. Mayor Pro Tem Alexander also requested that staff address a buckled sidewalk on Jodeco Road near the I75 northbound entrance ramp. Motion to approve the first one-year renewal for RFP No. 2025-0004 with CGS, LLC in the amount not to exceed $200,000 was made by Councilmember Gantt and seconded by Councilmember Berry. Motion carried unanimously. 6. Council Consideration to Approve the Fourth (4th) and Final Renewal Option for RFP No. 20220006, On-Call General Engineering Services – Falcon Design Group, LLC, $200,000.00 Director Aaron noted that Falcon Design Group handles the city's civil engineering projects, including the LMIG program, Country Club Drive intersection improvements, stormwater billing, the alleyway project, and the Norfolk Southern parking lot. This is the final renewal term. Motion to approve the fourth and final renewal of on-call general engineering services with Falcon Design Group, LLC in the amount of $200,000 was made by Councilmember Gantt and seconded by Councilmember Cloud. Motion carried 4-0-1, with Mayor Pro Tem Alexander abstaining. 3|Page 7. Council Consideration to Approve the Fourth (4th) and Final Renewal Option for RFP No. 20220006, On-Call General Engineering Services – Carter & Sloope, Inc., Not to Exceed $200,000.00 Director Aaron explained that Carter & Sloope handles the city's utility infrastructure projects, including the wastewater treatment plant expansion application to EPD, and sewer and water line replacements in Willow Springs. Director Aaron also announced that a federal appropriation of $1,500,000 (split equally between water and sewer) had been secured through the late Congressman David Scott's office. Motion to approve the fourth and final renewal of on-call general engineering services with Carter & Sloope, Inc., not to exceed $200,000, was made by Councilmember Barber and seconded by Councilmember Gantt. Motion carried unanimously. 8. Council Consideration to Approve the First (1st) of Four (4) One-Year Renewal Options for RFP No. 2025-0006 with Site Engineering, Inc. – On-Call Utility Services, $400,000.00 Site Engineering, Inc. serves as the secondary on-call utility contractor for emergency repairs exceeding city resources, effective January 1, 2027. Motion to approve the first one-year renewal for RFP No. 2025-0006 with Site Engineering, Inc. in the amount of $400,000 was made by Councilmember Barber and seconded by Councilmember Berry. Motion carried unanimously. 9. Council Consideration to Approve the First (1st) of Four (4) One-Year Renewal Options for RFP No. 2025-0006 with Professional Pipeline, LLC – On-Call Utility Services, $400,000.00 Professional Pipeline, LLC serves as the primary on-call utility contractor under the same RFP, funded through SPLOST VI accounts. Motion to approve the first one-year renewal for RFP No. 2025-0006 with Professional Pipeline, LLC in the amount of $400,000 was made by Councilmember Gantt and seconded by Councilmember Cloud. Motion carried unanimously. NEW BUSINESS 10. Council Consideration to Approve Professional Pipeline to Replace the Culvert and Repair a Sinkhole at 286 Northwind Drive, $76,795.00 Director Aaron reported that following a resident complaint, staff conducted a CCTV inspection and discovered a collapsed storm pipe. The correct address was noted as 286 Northwind Drive (not "Nightwind" as written in the agenda). Funding is split between SPLOST VI account 321-15110542515 ($60,780) and the Stormwater Repairs account ($16,015, corrected from the $19,015 figure in the agenda). Motion to approve Professional Pipeline to replace the culvert and repair a sinkhole at 286 Northwind Drive in the total amount of $76,795, funded from SPLOST VI and the Stormwater Repairs account, was made by Councilmember Barber and seconded by Councilmember Berry. Motion carried unanimously. 11. Council Consideration to Approve Public Works to Apply to the Georgia Department of Natural Resources for Land and Water Conservation Fund Assistance for Clark Community Park – Phase 2.2, Committing the Required Local Match of $750,000.00 Director Aaron presented a 50/50 matching grant opportunity through the Georgia DNR Land and Water Conservation Fund. A successful application would yield $750,000 in grant funds paired with a 4|Page $750,000 local match from SPLOST VI, for a total of $1,500,000 in park improvements at Clark Community Park guided by the adopted master plan. Councilmember Barber requested a copy of the project description referenced in the draft resolution, which staff indicated would be provided upon completion of the application. The resolution was needed immediately to meet the grant application deadline. Motion to approve Public Works to apply to the Georgia Department of Natural Resources for Land and Water Conservation Fund assistance for Clark Community Park – Phase 2.2, committing the required local match of $750,000 from SPLOST VI, was made by Councilmember Gantt and seconded by Councilmember Cloud. Motion carried unanimously. 12. Council Consideration to Approve the Third (3rd) of Four (4) One-Year Renewal Options for RFP No. 2024-0005, Janitorial Maintenance Services with Intercontinental Commercial Services, Inc. (ICS), $152,100.00 The contract increases by $9,000 per year due to the addition of the new Police Substation. Funding covers janitorial services across all city facilities. Motion to approve the Third (3rd) of Four (4) One-Year Renewal for RFP No. 2024-0005 with Intercontinental Commercial Services, Inc. in the amount of $152,100 was made by Councilmember Gantt and seconded by Councilmember Cloud. Motion carried unanimously. 13. Council Consideration to Approve Change Order No. 3 with Prime Contractors, Inc., $78,814.39 Director Aaron explained that this change order relates to the construction of the new Public Works maintenance facility at 351 Taylor Drive. Unforeseen conditions required additional fill dirt due to unusually thick concrete found during demolition, a turnaround expansion, and an upgraded electrical service connection to accommodate three-phase power from Georgia Power. Motion to approve Change Order No. 3 with Prime Contractors, Inc. in the amount of $78,814.39 was made by Councilmember Berry and seconded by Councilmember Gantt. Motion carried unanimously. 14. Requesting Council Approval for the Establishment and Implementation of a Real Time Crime Center (RTCC) for the Stockbridge Police Department, Not to Exceed $157,881.19 Police Chief Orrin Hamilton presented the Real Time Crime Center proposal, describing it as a technology suite enabling crime analysts to monitor live camera feeds from partner businesses and relay real-time descriptions and directions of travel to dispatchers during active incidents. The primary funding of $148,500 comes from the Department's Violent Crime Reduction Grant, with the remaining $9,381.19 funded through Red Speed funds. No city general funds are required. Motion to approve the establishment and implementation of the Real Time Crime Center and authorize the purchase of the turnkey RTCC solution from Fountain Head Controls in an amount not to exceed $157,881.19 was made by Councilmember Cloud and seconded by Councilmember Gantt. Motion carried unanimously. 15. Council Consideration to Approve the Purchase of 10 RollShieldMH-Handgun Ballistic Shields and 9 RollShieldMH-Rifle Ballistic Shields from Verco Materials, LLC, Not to Exceed $102,875.04 Chief Hamilton presented the purchase as an officer safety enhancement, providing rapidly deployable ballistic protection for high-risk incidents. The purchase is fully funded through the Public Safety and Community Violence Grant. 5|Page Motion to approve the purchase of 10 RollShieldMH-Handgun ballistic shields and 9 RollShieldMH-Rifle ballistic shields from Verco Materials, LLC, not to exceed $102,875.04, was made by Councilmember Gantt and seconded by Councilmember Berry. Motion carried unanimously. 16. WHITLEY ENGINEERING 2027 CONTRACT RENEWAL Community Development Director Ryan Anderson presented the third of four one-year renewal options with Whitley Engineering for civil engineering services at no change from the prior year amount of $100,000. Motion to approve the Whitley Engineering 2027 contract renewal in the amount of $100,000 was made by Councilmember Berry and seconded by Councilmember Cloud. Motion carried 40-1, with Mayor Pro Tem Alexander abstaining due to a donation received from Whitley Engineering in support of the city's back-to-school event. 17. SagesGov Network 2027 CONTRACT RENEWAL Director Anderson presented the second of four contract renewals with SagesGov Network for cloudbased permitting and licensing software, noting the platform has been highly beneficial to the Community Development Department. The amount is $58,318.00, with no change from the prior year. Motion to approve the second contract renewal with SagesGov Network for cloud-based software, licensing, maintenance, and support services in the amount of $58,318.00 for 2027 was made by Councilmember Cloud and seconded by Councilmember Gantt. Motion carried unanimously. 18. DEESCO FIRE PROTECTION, INC. 2027 CONTRACT RENEWAL This item was removed from the agenda prior to the meeting. 19. CPL ARCHITECTS, ENGINEERS AND LANDSCAPE ARCHITECTS 2027 CONTRACT RENEWAL This item was removed from the agenda prior to the meeting. Comments – Mayor Pro Tem Mayor Pro Tem Alexander commended the Stockbridge Youth Council and its leadership board, and he recognized Commissioner Robinson's ongoing partnership with the city. He announced the upcoming Bridgefest event and invited Communications Manager Shana Thornton to provide more details. Ms. Thornton stated that Bridgefest will take place on Saturday, September 26, 2026. The event will feature a free festival starting at 3:00 PM, followed by a concert headlined by Drew Hill, with gates opening at 6:00 PM. City of Stockbridge residents can obtain tickets on Monday, September 21, 2026, from 5:00 PM to 8:00 PM at 4650 North Henry Boulevard. A valid ID is required (one ticket per person, and individuals must be present to claim their tickets). Mayor Pro Tem Alexander also addressed the recent removal of the mayor from office. City Manager Shawn Edmondson read an official statement confirming that the City Council had taken formal action removing the mayor pursuant to applicable city processes, and that all city operations, services, and staff would continue without interruption in accordance with the city charter, ordinances, and Georgia law. The city indicated it would not comment on potential legal proceedings beyond what is contained in the public record. 6|Page Executive Session The council convened in executive session to address matters pertaining to real estate, personnel, litigation, and cybersecurity. Motion to adjourn to executive session was made by Councilmember Cloud and seconded by Councilmember Gantt. Motion carried unanimously. Motion to end executive session and reconvene in open session was made by Councilmember Cloud and seconded by Councilmember Gantt. Motion carried unanimously. Upon reconvening, two personnel actions were announced: Motion to promote Cassandra Lester to the position of Chief Deputy Clerk for the City of Stockbridge was made by Councilmember Berry and seconded by Councilmember Gantt. Motion carried unanimously. Motion to approve the hiring of Marlena Edwards as the new City Clerk was made by Councilmember Berry and seconded by Councilmember Cloud. Motion carried unanimously. Adjournment Motion to adjourn was made by Councilmember Cloud and seconded by Councilmember Gantt. Motion carried unanimously. The meeting was adjourned at 9:45 pm. Respectfully submitted by: ______________________________ ______________________________ Cassandra Lester, Interim City Clerk Elton Alexander, Mayor Pro Tem 7|Page WORK SESSION MEETING SUMMARY MINUTES TUESDAY, AUGUST 25, 2026 6:00 P.M. Mayor & City Council Mayor Jayden L. Willams At-Large Mayor Pro Tem Elton Alexander – Council District 5 Councilmember LaKeisha Gantt – Council District 1 Councilmember Antwan Cloud – Council District 2 Councilmember Kyle D. Berry, Sr. – Council District 3 Councilmember Yolanda Barber – Council District 4 Administration Shawn Edmondson – City Manager Frank Milazi – City Treasurer Cassandra Lester – Interim City Clerk Quinton Washington – City Attorney Megan McCullough – Associate Attorney Mission: To provide visionary leadership and superior municipal services that enhance the quality of life for citizens while creating a welcoming business atmosphere focused on sustainability and expansion of tourism and cultural events. Call to Order Mayor Jayden L. Williams called the Work Session to order at 6:04 PM. Invocation The invocation was delivered by Councilmember for District 3, Kyle D. Berry, Sr. The pledge of allegiance followed and was recited by all in attendance. Roll Call A quorum was established. Councilmember Gantt was not in attendance. Adoption of the Agenda Mayor Williams presented the agenda and noted an amendment to add "Wed for Wednesday" initiative from the Municipal Court's office, and Resolution R-26 pertaining to document submission procedures for the September 12th hearing. Both items were designated as Items 10 and 11. Motion to add Resolution R-26 and the Wed for Wednesday item to the agenda was made by Mayor Pro Tem Alexander; seconded by Councilmember Berry. The motion carried 4-0. Councilmember Barber additionally requested the addition of two items for discussion: (1) establishing two at-large council seats or dissolving council districts, and (2) a moratorium on residential development in the downtown area and north of District 4. 1|Page Motion to add Item 1 (at-large council seats/district dissolution) as a discussion-only item was made and seconded. The motion failed 2–0, with 2 abstentions. The motion to add Item 2 (the residential development moratorium) failed for lack of a second. Mayor Pro Tem Alexander noted for the record that neither proposal had been communicated to fellow council members in advance and requested that Councilmember Barber open lines of communication with colleagues before bringing items directly to a public meeting. Councilmember Barber responded that she had raised these issues on multiple prior occasions without action and that the public meeting was an appropriate venue to advance the discussion. Motion to adopt the final agenda, inclusive of all approved amendments, was made by Mayor Pro Tem Alexander and seconded. The motion carried 4–0. Public Comments There were no public comments. Presentation 1. Financial Report as of 7/31/2026 and City of Stockbridge ACFR FY25 City Treasurer Frank Milazi presented both the FY25 Annual Comprehensive Financial Report (ACFR) and the Financial Report as of July 31, 2026. FY25 ACFR Highlights: The City carries two outstanding debt obligations: approximately $5 million on city facilities and a $9.8 million balance on the $14 million community center bond. The city's unassigned fund balance increased from a deficit of approximately $750,000 in FY24 to approximately $16.8–$19 million at the close of FY25 (December 31, 2025). The improvement was attributed primarily to the correction of a long-standing fund co-mingling issue in which capital project expenditures were incorrectly charged to the General Fund rather than the appropriate SPLOST accounts. The City also retired the amphitheater debt and the GFA/waterside debt during FY25. An additional $300,000 in misallocated charges was identified and is being corrected through the TSPLOST account. The City received the Government Finance Officers Association (GFOA) Award for Excellence in Financial Reporting and has reapplied for the current year. Mayor Pro Tem Alexander clarified for the public record that no funds were ever "missing"; rather, expenditures were drawn from the incorrect accounts and have since been properly reallocated. The council directed staff to post the ACFR and budget documents on the city website and to issue a public communication with a link or QR code to access the reports. Staff also announced a forthcoming public "Table Talk" event to provide additional context on the city's financial history. The council further requested that the independent auditors, Mauldin & Jenkins, present directly to the public, whether at a town hall or a future council meeting. Financial Report as of July 31, 2026: General Fund revenues received through July 31 totaled approximately $12.4 million against an annual budget of $34 million. Insurance premium tax revenues (~$3.4–3.5 million) are expected in October. Sales tax collections were noted as underperforming, a trend attributed in part to the two-month reporting lag and broader economic conditions, with improvement anticipated in the Thanksgiving and Christmas periods. General Fund expenditures totaled approximately $20.5 million against a budget of $37.8 million, with all departments within their appropriations. Total other fund revenues received were $18.5 million against a budget of $40.5 million. Water and sewer revenues were identified as a concern and are being closely monitored. Staff 2|Page confirmed that budgetary controls implemented under the current administration have eliminated non-budgeted spending. The ACFR acceptance was deferred to a future meeting to coincide with a public presentation by Mauldin & Jenkins. The following two items were moved to the top of New Business by unanimous consent of the Council prior to the standard New Business agenda items. New Business Item 10 — Wed for Wednesdays (Municipal Court Initiative) The Municipal Court Administrator Genea Stanley presented the "Wed for Wednesdays" initiative, a program offering wedding ceremonies officiated by Chief Judge Wanda Dallas on the last Wednesday of each month from 2:00 to 4:00 PM, beginning with a trial run in September and October 2026. The program requires no additional budget expenditure and is intended to strengthen community engagement, support downtown economic activity, and expand court services. Motion to approve the Wed for Wednesday’s initiative was made by Mayor Pro Tem Alexander; seconded by Councilmember Berry. The motion carried 4–0. Item 11 — Resolution R-26: September 4th Witness List and Exhibit Exchange Deadline City Attorney Quinton Washington presented Resolution R-26, which memorializes September 4, 2026 at 5:30 PM as the deadline for all parties to submit witness lists and exhibits to the Interim City Clerk in preparation for the September 12th hearing. The deadline was previously agreed upon by all parties during the prior Saturday's hearing proceedings. Councilmember Barber abstained, citing insufficient time to review the six-page document prior to the meeting. Motion to approve Resolution R-26 was made by Mayor Pro Tem Alexander; seconded by Councilmember Cloud. The motion carried 3–0–1 (Councilmember Barber abstaining). 2. Council Consideration to approve the purchase of furniture from HON Furniture in the amount of $123,530.35 for the New Maintenance Shop. Public Works Director Decius Aaron advised that the new maintenance shop building is scheduled for completion in November 2026 and that furniture requires six to eight weeks for delivery. Advance approval was requested to avoid occupancy delays. Funding is from SPLOST VI. Motion to approve the furniture purchase from HON Furniture in the amount of $123,530.35 was made by Councilmember Berry; seconded Councilmember. The motion carried 4–0. 3. Council Consideration to approve the competitively solicited contract pursuant to RFP No. 20260007, City of Stockbridge Comprehensive Residential Waste and Disposal Services with Waste Industries of Atlanta, LLC d/b/a GFL Environmental, in the amount of $2,450,000.00. Public Works Director Aaron reported that five proposals were received in response to the RFP; three firms were interviewed. The evaluation committee recommended GFL Environmental (operating as Waste Industries of Atlanta, LLC) as the most qualified and lowest-cost respondent at $17.75 per customer per month. The next lowest bid was Arrow Waste at $21.33 per month. As a condition of the RFP, all residential customers will receive new garbage carts under the new contract. The initial contract term is two years, with an effective date of February 1, 2027. 3|Page Mayor Pro Tem Alexander requested that staff explore options for adding the City of Stockbridge name or logo to the new carts, either through co-branding or a sticker program, to increase public awareness that the City subsidizes the service. City Manager Edmondson agreed to obtain cost quotes for both options and report back to the council. Mayor Pro Tem Alexander also disclosed for the record that GFL had previously provided support to his nonprofit organization in prior years, though not in the current year, and that he played no role in the evaluation committee. Motion to approve the contract award to Waste Industries of Atlanta, LLC d/b/a GFL Environmental in the amount of $2,450,000.00, funded from Sanitation account number 54045200-523991, with an effective date of February 1, 2027, was made by Councilmember Barber; seconded by Councilmember Berry. The motion carried 4–0. 4. Council Consideration to approve the Walt Stephens Trail Project Service Agreement in the amount of $216,835.00. Public Works Director Aaron presented the service agreement with the PATH Design Team for full professional services on the 1.1-mile, ten-foot wide concrete multi-use trail along Walt Stephens Road. The project is funded through TSPLOST I. Mayor Pro Tem Alexander expressed support for the project and requested that the council add a condition requiring a dedicated right-of-way acquisition point person to secure any necessary easements and parcels along the trail corridor in a manner consistent with the approach used on other city trail projects. He also requested a trail project map be made publicly available. He further expressed a desire to initiate additional concurrent trail projects in other council districts, including Campground Road and Peach Drive, where right-of-way is already held by the City. Motion to approve the Walt Stephens Trail Project Service Agreement in the amount of $216,835.00, with the added condition that a right-of-way acquisition point person be designated to secure any necessary right-of-way along the trail corridor made by Mayor Pro Tem Alexander; seconded by Councilmember Cloud. The motion carried 4–0. 5. Council Consideration to approve the proposed FY 2027 LMIG paving list. Public Works Director Aaron presented the FY 2027 Local Maintenance and Improvement Grant (LMIG) paving list, covering 5.1 miles across 27 street segments in nine subdivisions spanning all council districts. Approval of the list is required to submit the FY 2027 LMIG funding application. Mayor Pro Tem Alexander inquired about the northern section of Patrick Henry Parkway; Director Aaron confirmed that segment is part of a separate upcoming project tied to bridge approach slab repairs and will be bid in the coming weeks. Motion to approve the proposed FY 2027 LMIG paving list was made by Mayor Pro Tem Alexander; seconded by Councilmember Berry. The motion carried 4–0. 6. Council Consideration to approve the award of ITB No. 2026-0010 for the City's Landscape Maintenance Services to Gibson Landscape Services, LLC in the amount of $159,732.00. Public Works Director Aaron reported that the existing landscape maintenance contract expires at the end of September 2026. Six vendors responded to the ITB, and Gibson Landscape Services, LLC was the highest-rated and lowest-cost respondent. The contract scope covers all city buildings, the amphitheater, the downtown streetscape, historical markers, and the alleyway project area, with mulch replacement included quarterly. The new contract begins October 1, 2026. Mayor Pro Tem Alexander directed that staff walk the property with the new contractor at commencement to clearly 4|Page communicate performance expectations, particularly regarding edging and overall presentation standards. Motion to approve the award of ITB No. 2026-0010 to Gibson Landscape Services, LLC in the amount of $159,732.00 was made by Mayor Pro Tem Alexander; seconded Councilmember Berry. The motion carried 4–0. 7. Council Consideration to approve the award of ITB No. 2026-0011 for the City's LMIG Roads and Resurfacing to East Coast Grading, Inc. in the total amount of $3,022,990.26. Public Works Director Aaron reported that 26 roads totaling 6.38 miles will be resurfaced across all five council districts under the FY 2026 LMIG list, with District 4 carrying the heaviest concentration due to the inclusion of East Atlanta Road (from North Henry Boulevard to the city limit). The contractor, East Coast Grading, Inc., submitted the lowest responsive bid; the average bid across respondents was $3.4 million. Director Aaron noted that Daniel Drive, identified as the most deteriorated road on the list, will be prioritized for work to begin first. The public was advised to anticipate traffic management impacts during East Atlanta Road resurfacing. Funding is from TSPLOST I, GDOT LMIG, and GDOT LRA accounts. Motion to approve the award of ITB No. 2026-0011 to East Coast Grading, Inc. in the total amount of $3,022,990.26 made by Councilmember Berry; seconded by Mayor Pro Tem Alexander. The motion carried 4–0. 8. Council Consideration to approve the award of ITB No. 2026-0012 for the Country Club Drive intersection improvement to East Coast Grading, Inc. in the amount of $1,078,067.00. Public Works Director Aaron presented the TSPLOST-funded intersection improvement project at Patrick Henry Parkway and Country Club Drive, which will include a three-way traffic signal installation, milling and paving, striping, concrete curb and gutter, sidewalk improvements, and decorative black mast-arm signal posts consistent with the downtown streetscape standard. East Coast Grading, Inc. was the lowest responsive bidder among four respondents, coming in $5,400 below the second-lowest bidder. Mayor Pro Tem Alexander noted this project was specifically requested due to the high frequency of accidents at that intersection and expressed support for extending the mast-arm signal aesthetic to other commercial intersections throughout the city. Motion to approve the award of ITB No. 2026-0012 to East Coast Grading, Inc. in the amount of $1,078,067.00 was made by Mayor Pro Tem Alexander; seconded by Councilmember Berry. The motion carried 4–0. 9. Council Consideration to approve Professional Pipeline to perform an emergency leak repair on North Henry BLVD in the amount of $69,100.00. Public Works Director Aaron explained that Professional Pipeline is an on-call vendor for water and sewer infrastructure repairs. The emergency repair was authorized administratively and is now before the council for ratification, as the cost exceeds the City Manager's signing authority. The repair was expedited at the request of GDOT due to the leak's proximity to Highway 42 and the risk of road undermining. Motion to ratify the emergency leak repair by Professional Pipeline in the amount of $69,100.00, funded from account number 505-44200-522240 in the Water Department Budget, was made by Councilmember Cloud and seconded by Councilmember Berry. The motion carried 4–0. 5|Page Mayor Williams took the opportunity to introduce Mr. Billy Warren, the City's newly hired Assistant Public Works Director, who briefly addressed the Council. Mayor's Comments: There were no comments. Executive Session Motion to adjourn to Executive Session for the purposes of real estate, cybersecurity, personnel, and litigation was made Councilmember Cloud; seconded by Mayor Pro Tem Alexander. The motion carried 4–0. The Council convened in Executive Session. Motion to end Executive Session was made by Mayor Pro Tem Alexander and seconded Berry. The motion carried 4–0. Motions from Executive Session Upon returning to open session, Mayor Pro Tem Alexander announced the promotion of City Treasurer Frank Milazi to the position of Assistant City Manager, retaining his concurrent titles of Chief Financial Officer and Treasurer. The salary adjustment associated with the promotion was confirmed as a $10,000 increase, bringing Mr. Milazi's annual salary to $184,000. Councilmember Barber expressed unequivocal support for Mr. Milazi's professional contributions but initially opposed the motion, citing the absence of advance notice regarding the salary figure and characterizing the increase as an unbudgeted expense. Upon disclosure of the specific salary amount ($184,000) by City Manager Edmondson, Councilmember Barber withdrew her opposition and indicated approval. Motion to appoint Frank Milazi as Assistant City Manager / Chief Financial Officer / City Treasurer, with an annual salary of $184,000 (reflecting a $10,000 increase), was made by Mayor Pro Tem Alexander and seconded by Councilmember Berry. The motion carried 4–0. Adjournment Motion to adjourn was made by Councilmember Berry; seconded Councilmember Cloud. The motion carried 4–0. The meeting was adjourned at 9:01 p.m. Respectfully submitted by: ______________________________ ______________________________ Cassandra Lester, Interim City Clerk Elton Alexander, Mayor Pro Tem 6|Page INVESTIGATIVE HEARING SUMMARY MINUTES SATURDAY SEPTEMBER 12, 2026 9:00 A.M. Mayor & City Council Mayor Jayden L. Williams Mayor Pro Tem Elton Alexander Dist. 5 Councilmember LaKeisha Gantt Dist. 1 Councilmember Antwan Cloud Dist. 2 Councilmember Kyle D. Berry, Sr. Dist. 3 Councilmember Yolanda Barber Dist. 4 Administration Shawn Edmondson, City Manager Frank Milazi, City Treasurer/CFO Cassandra Lester, Interim City Clerk Quinton Washington, City Attorney Pursuant to the requirements of Charter § 2.17, the Stockbridge City Council conducted an investigative hearing concerning Mayor Jayden L. Williams on Saturday, September 12th, 2026, at 9:00 A.M. Due to a prior judgment, Councilmember LaKeisha Gantt was prohibited from deliberating on the proceedings and was not allowed to participate other than as a spectator. Since the interim clerk was a witness, she was also excluded from the proceedings until after her testimony. The hearing was presided over by M. Gino Brogdon Sr., and included examination and crossexamination of multiple witnesses by presenting counsel, Mr. Robert Ash and Amanda Bradley on behalf of the city, and defense counsel Mr. Robert Kenner Jr., on behalf of Mayor Williams. Testimony and documentary evidence were received concerning allegations of misuse of the City's purchasing card (P-card), improper use of City vehicles and fuel, attempted fraudulent expense submissions, interference with City staff duties, and related alleged sexual misconduct. Closing arguments were delivered by both counsels. Defense counsel argued that the evidence presented was insufficient to justify removal of a duly elected official, that the investigation was inadequately conducted, and that the hearing represented a disproportionate expenditure of public funds relative to the allegations. Presenting counsel argued that the evidence established by a preponderance of the evidence, that Mayor Williams had repeatedly misused City resources, submitted fraudulent expense claims, obstructed the investigation, and engaged in conduct constituting a violation of his oath of office, the City Charter, and applicable ethics codes. Following the close of evidence and arguments, hearing officer M. Gino Brogdon Sr., instructed the Council that the applicable standard of proof is “a preponderance of the evidence”—meaning the superior weight of the evidence—rather than the criminal standard of “beyond a reasonable doubt.” 1|Page Councilmember Berry made a motion to adjourn to executive session for legal, real estate, cybersecurity, and personnel matters; seconded by Councilmember Cloud. The motion passed unanimously, 4-0. Stockbridge City Councilmembers, Mayor Pro Tem Elton Alexander, Yolanda Barber, Kyle Berry, and Antwan Cloud, moved into executive session for deliberation. EXECUTIVE SESSION (Exemptions to the Georgia Open Meetings Act O.C.G.A. § 50-14-1) Mayor Pro Tem Elton Alexander called for a motion to end the executive session. Councilmember Berry made a motion to end the executive session and resume the meeting; seconded by Councilmember Cloud. The motion passed unanimously 4-0. The following action was taken from executive session: A motion to impeach Mayor Jayden L. Williams for violations of Charter Section 2.16— malfeasance and misfeasance—Section 2.16(c) and violation of the oath of office, made by Councilmember Berry; seconded by Councilmember Cloud. The motion passed with a vote of 3-0-0. Councilmember Barber did not cast a vote and did not verbally abstain. After the impeachment vote, Councilmember Berry made a motion for a second executive session to discuss personnel, real estate, and cybersecurity matters. The City Manager, Shawn Edmondson; Chief of Police, Orrin Hamilton; Communications Manager, Shana Thornton; and HR Director, Dwayne Pollock, were asked to attend. The motion was seconded by Councilmember Cloud and passed unanimously with a vote of 4-0. EXECUTIVE SESSION (Exemptions to the Georgia Open Meetings Act O.C.G.A. § 50-14-1) Mayor Pro Tem Alexander called for a motion to end the executive session and adjourn. Motion made by Councilmember Cloud; seconded by Councilmember Berry. There were no actions taken following the second executive session: ADJOURNMENT The investigative hearing adjourned following the second executive session. Respectfully submitted by: ______________________________ Cassandra Lester, Interim City Clerk ______________________________ Elton Alexander, Mayor Pro Tem 2|Page ` CITY OF STOCKBRIDGE, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2025 CITY OF STOCKBRIDGE, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2025 Prepared By: Department Of Finance CITY OF STOCKBRIDGE, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal ............................................................................................................................................. i – iv Certificate of Achievement ..........................................................................................................................................v Organizational Charts .................................................................................................................................... vi and vii List of Elected and Appointed Officials ................................................................................................................. viii FINANCIAL SECTION Independent Auditor's Report ............................................................................................................................. 1 – 4 Management’s Discussion and Analysis.......................................................................................................... 5 – 13 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position .............................................................................................................................. 14 Statement of Activities........................................................................................................................ 15 and 16 Fund Financial Statements: Balance Sheet – Governmental Funds.............................................................................................. 17 and 18 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds .................................................................................................. 19 and 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................ 21 General Fund – Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ........................................................................................................ 22 ARPA Fund – Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ........................................................................................................ 23 Grants Fund – Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ........................................................................................................ 24 Statement of Net Position – Proprietary Funds ........................................................................................... 25 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds .............................................................................................................. 26 Statement of Cash Flows – Proprietary Funds ................................................................................ 27 and 28 Statement of Fiduciary Net Position – Custodial Fund ............................................................................... 29 Statement of Changes in Fiduciary Net Position – Custodial Fund ......................................................... 30 Notes to Financial Statements .................................................................................................................. 31 – 60 Required Supplementary Information: Schedule of Changes in the City’s Net Pension Liability and Related Ratios ................................. 61 and 62 Schedule of City Contributions ............................................................................................................. 63 and 64 CITY OF STOCKBRIDGE, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 TABLE OF CONTENTS (CONTINUED) Page FINANCIAL SECTION (CONTINUED) Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – Nonmajor Governmental Funds ........................................................... 65 and 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .................................................................................... 67 and 68 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Special Revenue Fund – Hotel/Motel Tax Fund ....................................................... 69 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Special Revenue Fund – Redspeed Fund ................................................................. 70 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Permanent Fund – Burke Cemetery Fund ................................................................ 71 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Projects Fund – Downtown Development Fund ......................................... 72 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Projects Fund – Urban Redevelopment Fund ............................................. 73 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Projects Fund – City-Wide Development Fund ........................................... 74 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Projects Fund – Impact Fee Fund ................................................................ 75 Combining Statement of Net Position – Nonmajor Enterprise Funds .......................................................... 76 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Nonmajor Enterprise Funds ........................................................................................................................... 77 Combining Statement of Cash Flows – Nonmajor Enterprise Funds .......................................................... 78 Schedule of Expenditures of Special Purpose Local Option Sales Tax Proceeds – SPLOST III ............................................................................................................................ 79 Schedule of Expenditures of Special Purpose Local Option Sales Tax Proceeds – SPLOST IV ............................................................................................................................ 80 Schedule of Expenditures of Special Purpose Local Option Sales Tax Proceeds – SPLOST V ............................................................................................................................. 81 Schedule of Expenditures of Special Purpose Local Option Sales Tax Proceeds – SPLOST VI ............................................................................................................................ 82 Schedule of Expenditures of Transportation Special Purpose Local Option Sales Tax Proceeds ................................................................................................................................................... 83 CITY OF STOCKBRIDGE, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 TABLE OF CONTENTS (CONTINUED) Page STATISTICAL SECTION Net Position by Component .................................................................................................................... 84 and 85 Changes in Net Position .............................................................................................................................. 86 – 89 Governmental Activities Tax Revenues by Source .............................................................................. 90 and 91 Fund Balances of Governmental Funds ................................................................................................ 92 and 93 Changes in Fund Balances of Government Funds............................................................................... 94 and 95 General Governmental Tax Revenues by Source ............................................................................................. 96 Assessed Value of Taxable Property ................................................................................................................. 97 Property Tax Rates – Direct and Overlapping Governments .......................................................................... 98 Principal Property Taxpayers ............................................................................................................................. 99 Principal Franchise Taxpayers ......................................................................................................................... 100 Ratios of Outstanding Debt by Type .................................................................................................. 101 and 102 Direct and Overlapping Governmental Activities Debt .................................................................................. 103 Legal Debt Margin Information ........................................................................................................... 104 and 105 Pledged Revenue Coverage ................................................................................................................ 106 and 107 Demographic and Economic Statistics ........................................................................................................... 108 Principal Employers ........................................................................................................................................... 109 Full-Time Equivalent City Government Employees by Function .................................................................. 110 Operating Indicators by Function....................................................................................................... 111 and 112 Capital Asset Statistics by Function .................................................................................................. 113 and 114 COMPLIANCE SECTION Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................ 115 and 116 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by The Uniform Guidance. ...................................... 117 – 120 Schedule of Expenditures of Federal Awards................................................................................................. 121 Notes to Schedule of Expenditures of Federal Awards ................................................................................. 122 Schedule of Findings and Questioned Costs ....................................................................................... 123 – 128 Schedule of Prior Year Findings............................................................................................................. 129 – 132 Management’s Corrective Action Plan .............................................................................................. 133 and 134 INTRODUCTORY SECTION July 30, 2026 To the Honorable Mayor, Distinguished Members of City Council And the Citizens of the City of Stockbridge: Ladies and Gentlemen: State Law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with general accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report of the City of Stockbridge, Georgia for the fiscal year ended December 31, 2025. This report consists of management’s representations concerning the finances of the City of Stockbridge, Georgia. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Stockbridge has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Stockbridge’s financial statements in conformity with GAAP. Because the cost of the internal controls should not outweigh their benefits, the City of Stockbridge’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Stockbridge’s financial statements have been audited by Mauldin and Jenkins LLC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Stockbridge for the fiscal year ended December 31, 2025, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Stockbridge’s financial statements for the fiscal year ended December 31, 2025, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of the report. A single audit was necessary in 2025. The requirement for a single audit is the expense of $1,000,000 or more in federal funds. Government Auditing Standards require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements. This report is available under a separate cover. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Stockbridge’s MD&A can be found immediately following the report of the independent auditors. Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Stockbridge Georgia For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2024 Executive Director/CEO vi City of StockBridge Organizational Chart - effective 01/01/2025 City of Stockbridge Residents Mayor & Council Boards & Authorities Solicitor City Attorney Auditor Municipal Court Judge Treasurer City Manager Executive Assistant Payroll Specialist Procurement Manager Receptionist Public Works Director Grants Administrator Project Manager IT Director Assistant Public Works AssistantDirector Facilities Supervisor Facility Technicians(1) Stormwater Technicians(4) Public Works Operations Manager Crew Leaders(3) Public Works Technicians(7) Mechanics(2) Engineer Inspector(EPD) Public Information Officer Administrative Executive Assistant Stormwater Supervisor Human Resources Manager Court Administrator Water Systems Chief Operator Main Street Coordinator Admin. Assistant Wastewater Collections Chief Public Works Technician(2) Water Technicians(6) Wastewater System Operators(2 Executive Assistant Conference Center Coordinator Event Coordinator Wastewater Superintendent Wastewater Systems Chief Economic Development Director Main Street Manager HR Coordinator Deputy Court Clerk Water Superintendent Police Chief Community Development Director Management Analyst Wastewater Collections Systems Operators(3) Wastewater Collections Operator(2) Contracted Services Appointed Position New Position Vacant Position vii 1 Building Permits and Inspections Fire Marshall Permit Coordinator Senior Accountant Utility Billing Supervisor Procurement Specialist Conference Center Manager City Clerk Accountant 1 Financial Serv Tech Procurement Clerk Utility Billing Clerk Accts. Payable Clerk Chief Planner Code Enforcement Supervisor Code Enforcement Officers(2) Business Services Supervisor Administrative Assistant Senior Planner GIS Analyst Occupational Tax Clerk (2) Planner 1 Deputy City Clerk Executive Assistant to Mayor & Council Admin Asst. City of Stockbridge Police Department Organizational Chart Effective November 25, 2025 Chief of Police Internal Affairs Reports Directly to the Chief of Police Executive Assistant Executive Officer Accreditation Manager Assistant Chief Accountant Operations Support Patrol Day B Team C Team D Team Investigation Unit CSI/P&E Cpr Cpr Cprl Cprl Criminal Investigation CSI Zone 1 Zone 1 Zone 1 Zone 2 Zone 2 Zone 2 Zone 2 DFC Det Zone 3 Zone 3 Zone 3 Zone 3 Det Det Zone 4 Zone 4 Zone 4 Zone 4 Detective SPO Support Unit Support Unit Support Unit Support Unit Ofc. SPO SPO Support Unit Cpl CSI Zone 1 Cpl Administrative Services Community Affairs DEA Task Force Patrol Evening A Team SPO Community Services Investigative Services Field Services Crime Suppression & Traffic Unit CST Unit K-9 Officer Officer Crime Analyst Public Safety Code Supervisor Records Manager Public Safety Information Co-Responder Coordinator Administration Professional Standards Part-Time Coordinator Records Coord./TAC Part-Time Officer Training Training PSO Code Officer Records Coordinator Part-Time Officer SPO Officer PSO Code Officer Records Clerk Part-Time Officer Ofc Officer PSO Code Officer CST Unit Total Full-Time Sworn Total Full-Time Civilian Total Part-Time 67 19 6 Total Full Time Employees 86 SPO In Background viii Sworn Temporary Light Duty Part-Time External Emp. Civilian Vacant Leave In-Training Filled-On Hold Background & Recruitment CITY OF STOCKBRIDGE, GEORGIA LIST OF ELECTED AND APPOINTED OFFICALS December 31, 2025 LEGISLATIVE BRANCH MAYOR AND CITY COUNCIL Anthony Ford Mayor LaKeisha Gantt Mayor Pro Tem Elton Alexander Council Member Yolanda Barber Council Member Kyle Berry Sr. Council Member Alphonso Thomas Council Member OFFICERS OF THE MAYOR AND COUNCIL Shawntez Edmondson City Manager Frank S. Milazi City Treasurer Vanessa Holiday City Clerk Cassandra Lester Deputy City Clerk Quinton Washington City Attorney Jeremy Berry City Attorney Megan McCulloch City Attorney JUDICIAL BRANCH Matthew McCord Municipal Court Judge Julie Kert City Solicitor Genea Stanley Court Clerk ix FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Stockbridge, Georgia Stockbridge, Georgia Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Stockbridge, Georgia (the “City”), as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of December 31, 2025, and the respective changes in financial position and, where applicable, cash flows thereof, and the budgetary comparison for the General Fund, the Grants Fund, and the American Rescue Plan Act (“ARPA”) Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. MAULDIN & JENKINS, LLC • 300 MULBERRY STREET • POST OFFICE BOX 1877 • MACON, GEORGIA 31202-1877 478-464-8000 • FAX 478-464-8051 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:      Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 2 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis (on pages 5 through 13), the Schedule of Changes in the City’s Net Pension Liability and Related Ratios (on pages 61 and 62), and the Schedule of City Contributions (on pages 63 and 64) be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with generally accepted auditing standards, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedules of Expenditures of Special Purpose Local Option Sales Tax (“SPLOST”) proceeds as required by the Official Code of Georgia Annotated (“O.C.G.A.”) §48-8-121, and the Schedule of Expenditures of Transportation Special Purpose Local Option Sales Tax (“TSPLOST”) proceeds, as required by O.C.G.A. §48-8-269.5, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and is also not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules, the Schedules of Expenditures of Special Purpose Local Option Sales Tax Proceeds, the Schedule of Expenditures of Transportation Special Purpose Local Option Sales Tax Proceeds, and the Schedule of Expenditures of Federal Awards (the “supplementary information”) are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 3 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 30, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Macon, Georgia July 30, 2026 4 CITY OF STOCKBRIDGE, GEORGIA MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 As management of the City of Stockbridge (the “City”), we offer readers of the City of Stockbridge’s financial statements this narrative overview and analysis of the financial activities of the City of Stockbridge for the fiscal year ended December 31, 2025. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the City’s financial statements, which follow this narrative. Financial Highlights  The assets and deferred outflows of the City of Stockbridge exceeded their liabilities and deferred outflows on December 31, 2025, by $156,023,271 (total net position). Of this amount, $23,719,172 is unrestricted and may be used to meet the government’s ongoing obligations to citizens and creditors.  The total net position, on an entity wide basis, increased by $14,367,798. Of this amount, an increase of $11,644,325 was associated with governmental activities and an increase of $2,723,473 was associated with business-type activities.  As of the close of the current fiscal year, the City of Stockbridge’s governmental funds reported combined ending fund balances of $68,396,495, an increase of $7,742,271 compared to the prior year. The General Fund, which serves as the City’s chief operating fund, reported an ending fund balance of $17,913,854.  The City of Stockbridge’s bonds and notes payables decreased by $5,793,938 for an overall decrease of 25% due to scheduled debt service payments. Due to the implementation of GASB 87 Statement No 87, Leases as of December 13, 2025, totaled $137,222.  The City of Stockbridge imposed its first property tax, with a millage rate of 3.77 in 2023. The total property tax collected on December 31, 2025, was $7,186,782 which will add revenues to the General Fund. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to City of Stockbridge’s basic financial statements. The City’s basic financial statements consist of three components. 1) Government-wide financial statements. 2) Fund financial statements; and 3) Notes to the financial statements. The basic financial statements present two different views of the City through the use of government-wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader’s understanding of the financial condition of the City of Stockbridge. 5 MANAGEMENT’S DISCUSSION AND ANALYSIS Basic Financial Statements The first two statements in the basic financial statements are the Government-wide Financial Statements. They provide both short and long-term information about the City’s financial status. The next statements are Fund Financial Statements. These statements focus on the activities of the individual parts of the City government. These statements provide more detail than the government-wide statements. There are three parts to the Fund Financial Statements: 1) The governmental funds statements. 2) The budgetary comparison statements; and 3) The proprietary fund statements. The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the (type of unit-city, county, etc.) individual funds. Budgetary information required by the General Statutes also can be found in this part of the statements. Government-wide Financial Statements The government-wide financial statements are designed to provide the reader with a broad overview of the City’s finances, similar in format to a financial statement of a private-sector business. The government-wide statements provide short and long-term information about the City’s financial status. The two government-wide statements report on the City’s net assets and how they have changed. Net assets are the difference between the City’s total assets and total liabilities. Measuring net assets is one way to gauge the City’s financial condition. The government-wide statements are divided into three categories: 1) Governmental activities. 2) Business-type activities, and; 3) Component units. The governmental activities include most of the City’s basic services such as public safety and courts, highways and streets, parks and recreation, tourism and promotion, code enforcement, and general administration. The business-type activities are those that the City charges customers to provide. These include the water and sewer, solid waste management, conference center, community center, and stormwater management services offered by the City of Stockbridge. 6 MANAGEMENT’S DISCUSSION AND ANALYSIS The final category is the component unit. Although legally separate from the City of Stockbridge, the Urban Redevelopment Agency is important to the City because the City exercises control over the Board by appointing its members and because the Board is required to distribute its profits to the City Financial Fund Statements The fund financial statements provide a more detailed look at the City’s most significant activities. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Stockbridge, like all other governmental entities in Georgia, uses fund accounting to ensure and reflect compliance (or non-compliance) with finance-related legal requirements, such as the General Statutes or the City’s budget ordinance. All of the funds of the City of Stockbridge can be divided into two categories: governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for those functions reported as governmental activities in the governmentwide financial statements. Most of the City’s basic services are accounted for in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting that provides a short-term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him or her determine if there are more or less financial resources available to finance the City’s programs. The relationship between government activities (reported in the Statement of Net assets the Statement of Activities) and governmental funds is described in a reconciliation that is a part of the fund financial statements. The City of Stockbridge adopts an annual budget for its General Fund, as required by state law. The budget is a legally adopted document that incorporates input from the citizens of the City, the management of the City, and the decisions of the Mayor and Council about which services to provide and how to pay for them. It also authorizes the City to obtain funds from identified sources to finance these current period activities. The budgetary statement provided for the General Fund demonstrates how well the City complied with the budget ordinance and whether or not the City succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting and is presented using the same format, language, and classifications as the legal budget document. The statement shows four columns: 1) The original budget was adopted by the Council. 2) The final budget as amended by the Council; 3) The actual resources, charges to appropriations, and ending balances in the General Fund; and 4) The difference or variance between the final budget and the actual resources and charges. 7 MANAGEMENT’S DISCUSSION AND ANALYSIS To account for the difference between the budgetary basis of accounting and the modified accrual basis, a reconciliation showing the differences in the reported activities is shown at the end of the budgetary statement. The City maintains seven major governmental funds: the General Fund, Hotel/Motel Tax Fund, SPLOST V and TSPLOST State and Federal Grants Funds, Urban Redevelopment Fund, and the Perpetual Care Permanent Fund. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for all major funds. Proprietary Funds Enterprise funds (a component of proprietary funds) are used to report the same functions presented as businesstype activities in the government-wide financial statements. The City has five enterprise funds: Water and Sewer Fund, Solid Waste Management Fund, Conference Center Fund, Community Center, and its Stormwater Management Fund. These funds are the same as those functions shown in the business-type activities in the Statement of Net assets and the Statement of Activities. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning the City of Stockbridge’s progress in funding its obligation to provide pension benefits to its employees. Government-Wide Financial Analysis As noted earlier, net position may serve over time as one useful indicator of a government’s financial position. The assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $156,023,271 as of December 31, 2025. The City’s net position reflects their investment in capital assets of $97,258,790, less any related debt used to acquire those assets that are still outstanding. The City of Stockbridge uses capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS The City of Stockbridge Net Position Governmental Activities 2024 2025 Current and other assets Capital assets Total assets Business-Type Activities 2024 2025 2024 9,304,052 49,153,799 58,457,851 $ 84,097,703 99,872,326 183,970,029 $ 76,780,635 99,080,343 175,860,978 $ 72,427,850 51,058,527 123,486,377 $ 67,476,583 49,926,544 117,403,127 $ 11,669,853 48,813,799 60,483,652 Deferred outflows of resources Pension 2,116,762 1,428,409 629,279 422,159 2,746,041 1,850,568 Long-term liabilities outstanding Other liabilities Total liabilities 22,683,057 3,171,171 25,854,228 26,041,374 4,387,571 30,428,945 1,378,812 3,459,759 4,838,571 1,734,271 3,506,778 5,241,049 24,061,869 6,630,930 30,692,799 27,775,645 7,894,349 35,669,994 - 298,005 - 88,074 - 386,079 48,568,371 35,045,309 16,135,231 42,189,004 43,483,078 2,432,504 48,690,419 7,583,941 46,676,826 6,874,061 97,258,790 35,045,309 23,719,172 88,865,830 43,483,078 9,306,565 99,748,911 $ 88,104,586 $ 56,274,360 53,550,887 $ 156,023,271 $ 141,655,473 Deferred inflows of resources Pension Net position: Net investment in capital assets Restricted Unrestricted Total net position $ $ Totals 2025 $ The City received $764,547 for Local Maintenance Improvement Grants for the year associated with street construction, repairs and improvements. 9 MANAGEMENT’S DISCUSSION AND ANALYSIS Governmental Activities City of Stockbridge Changes in Net Position Governmental Activities 2025 2024 Revenues: Program revenues: Charges for services Capital grants and contributions General revenues: Other tax Interest Loss on disposal of capital assets Total Revenues Expenses: General Government Judicial Public safety Public works Culture and Recreation Housing and development Interest on long-term debt Water and sewer Stormwater management Solid waste Conference center Amphitheater Total Expenses Increase (decrease) in net position before transfers Transfers Increase (decrease) in net position Net position - beginning of year, as restated Net position - end of year $ 3,732,930 28,102,997 $ Business-Type Activities 2025 2024 Total 2025 $ 15,392,015 28,102,997 2024 6,691,081 27,608,223 $ 11,659,085 - $ 12,054,524 - $ 18,745,605 27,608,223 18,149,936 739,506 50,725,369 17,687,165 219 (97,844) 51,888,844 1 11,659,086 12,054,524 18,149,936 739,507 62,384,455 17,687,165 219 (97,844) 63,943,368 6,784,010 1,007,011 11,201,320 10,225,698 8,949 4,069,160 612,001 33,908,149 7,862,580 996,738 10,110,171 9,132,532 9,011 3,037,046 712,944 31,861,022 5,706,357 993,318 2,531,154 3,962,337 915,342 14,108,508 5,463,511 1,351,190 2,599,035 721,019 8,133,471 18,268,226 6,784,010 1,007,011 11,201,320 10,225,698 8,949 4,069,160 612,001 5,706,357 993,318 2,531,154 3,962,337 915,342 48,016,657 7,862,580 996,738 10,110,171 9,132,532 9,011 3,037,046 712,944 5,463,511 1,351,190 2,599,035 721,019 8,133,471 50,129,248 16,817,220 (5,172,895) 11,644,325 88,104,586 $ 99,748,911 20,027,822 (7,964,120) 12,063,702 76,040,884 $ 88,104,586 (2,449,422) 5,172,895 2,723,473 53,550,887 $ 56,274,360 (6,213,702) 7,964,120 1,750,418 51,800,469 $ 53,550,887 14,367,798 14,367,798 141,655,473 $ 156,023,271 13,814,120 13,814,120 127,841,353 $ 141,655,473 Business-type Activities Business-type activities increased the City of Stockbridge’s net position by $2,723,473. The transfers from the City’s General Fund were to supplement the operations of the Amphitheater, the Conference Center, the newly created Information Technology department as well as the growing Police Department. Financial Analysis of the City’s Funds As noted earlier, the City of Stockbridge uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. Governmental Funds The focus of the City of Stockbridge’s governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing the City of Stockbridge’s financing requirements. Specifically, unreserved fund balance can be a useful measure of a government’s net resources available for spending at the end of the fiscal year. 10 MANAGEMENT’S DISCUSSION AND ANALYSIS The General Fund is the chief operating fund of the City of Stockbridge. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $16,423,053. As a measure of the General Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 65.70% of total General Fund expenditures, while total fund balance of $17,913,854 represents 71.64% of that same amount. During the current fiscal year, the City’s General Fund balance increased by $14,987,631. This increase reflects the transfers from SPLOST V to reimburse the General Fund for prior years expenditures to complete SPLOST V projects. General Fund expenditures rose by 12%, increasing from $22,300,069 in 2024 to $25,004,564 in 2025. The City collected a total of $8,921,296 in local sales taxes for 2025, a decrease of 0.05% over 2024. Franchise taxes increased by 12% to $2,784,891 in 2025 from $1,851,713 in 2024, for electric, television and telephone taxes. In 2025, tax revenues increased due to various reasons such as increase in tax assessment values leading to increase in property tax revenues, and an increase of the city’s population (homeowners) as a result of couple annexations into the city that increased the overall tax digest. The City’s SPLOST III and IV revenue has decreased by 70% from $8,489,440 to $2,556,967 with the ending of SPLOST III and SPLOST IV. TSPLOST revenue increased by 0.06% from $7,204,270 in 2024 to $7,251,139 in 2025. As of December 31, 2025, the Urban Redevelopment Agency of the City of Stockbridge had long-term liabilities from Revenue Bonds in the amount of $6,270,000. Most of these funds were used to acquire property, building and furnishing a new City Hall facility which was completed in 2009. The cost of the building is approximately $11,964,000. The Hotel/Motel Tax Fund is used to promote tourism in the City. The fund is used to account for proceeds from the City’s Hotel / Motel tax. The City is required to pay Henry County Chamber of Commerce a percentage of all collected funds. As of December 31, 2025, the total amount collected for this fund was $1,166,109. The City has a Perpetual Fund which is for the upkeep of the City Cemetery. A donation of $5,000 was made with investment earnings. These funds are used or the maintenance and upkeep of the Cemetery as needed. This fund is held as a Certificate of Deposit (“CD”) at Ameris Bank. Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements but in more detail. Unrestricted net position of the proprietary funds at the end of the year were $7,583,941 of which Water and Sewer Funds had $1,762,875 (23%) the Solid Waste Fund had $1,487,304 (20%). The Amphitheater Fund had $1,717,191 (23%) and all other enterprise funds had $2,616,571 (34.5%). 11 MANAGEMENT’S DISCUSSION AND ANALYSIS General Fund Budgetary Highlights: The amended balanced budget for the City’s General Fund for 2025 was $29,734,159. This is an increase of $667,616 from the final budget of 2024 which was $29,067,538. Capital Asset and Debt Administration Capital assets. The City’s investment in capital assets for its governmental and business type activities on December 31, 2025, amounts to $97,258,790. This investment in capital assets includes land, buildings, improvements, automobiles and equipment, sidewalks, bridges and roads. Due to the City’s fiscal responsibility, the long-term debt has been reduced by paying off debt of $5,763,674 in 2025. As a result of that, the City credit rating is increasing. General Fund balance increased by recapturing interfund payables and capital assets acquisition. American Rescue Plan Act (“ARPA”) Fund and Grant Fund have both tremendously increased net assets of the City due to many capital projects citywide that have changed the city’s outlook. Public Facilities Authority Fund and Citywide Capital Projects Fund through borrowed funds have enabled the city to accomplish it objective of investing in capital projects to better serve the Stockbridge citizens. Major capital assets events during the current fiscal year include the following:  FY 2025 LMIG – approximately $2,984,645.22 for roads paving, maintenance and repairs  Merle Manders, Tag Office, and Police Department Building Roof – approximately $156,112.80  Eagles Landing PKWY, Hudson Bridge Road, East Lake PKWY (IGA-Henry County) – approximately $3,973,863.65  Amphitheater Flex Pavers Project – approximately $212,850.00 Additional information on the City’s capital assets can be found in Note 6. 12 MANAGEMENT’S DISCUSSION AND ANALYSIS Long-term Debt As of December 31, 2025, the City had $24,061,869 in outstanding debt consisting of the following: Balance Governmental Activities: Revenue Bonds Accrued Compensated Absences Net Pension Liability Lease liability $ Business-Type Activities: Accrued Compensated Absences Net Pension Liability Total 17,445,000 1,226,444 3,874,391 137,222 227,016 1,151,796 $ 24,061,869 The City of Stockbridge’s total debt decreased by $3,713,776. Additional information on the City’s long-term debt can be found in Note 7. State statutes limit the amount of general obligation debt a governmental entity may issue to 10% of its total assessed valuation. The current debt limitation for the City is $194,020,390, which is more than the City’s outstanding general obligation debt. Economic Factors and Next Year’s Budgets and Rates      Annexations within the City will continue to increase the population of the City of Stockbridge The need for more of a police presence within the City, new developments bring in new residents Cost of Living in the region is comparable to national increases Property taxes have been rising in recent years During 2026 and going forward, the City will continue to do its best to secure additional funding sources, such as fees, grants and private participation, to continue to construct roads and capital projects, land & building purchases and improve capital items. Various fees rates will increase in 2026, it has been years when fees were adjusted. All of these factors were considered in the preparation of the City’s budget for the Fiscal Year 2026. Requests for Information This financial report is designed to provide a general overview of the City of Stockbridge’s finances, comply with finance-related laws and regulations, and demonstrate the City’s commitment to public accountability. Questions concerning this report or requests for additional information can be obtained by contacting the City at (770) 389-7000 or at the following address: City of Stockbridge, Finance Department, 4640 North Henry Boulevard, Stockbridge, Georgia 30281. 13 BASIC FINANCIAL STATEMENTS CITY OF STOCKBRIDGE, GEORGIA STATEMENT OF NET POSITION DECEMBER 31, 2025 Governmental Activities Primary Government Business-type Activities Total ASSETS Cash and cash equivalents Investments Taxes receivable Accounts receivable, net of allowances Due from other governments Internal balances Inventories Prepaid expenses Assets held for resale Capital assets, non-depreciable Capital assets, depreciable, net of accumulated depreciation and amortization $ 66,788,209 14,419 3,811,054 322,328 1,512,709 (1,511,670) 71,479 1,419,322 19,087,118 $ 8,856,379 58,000 1,051,339 63,343 1,511,670 70,061 59,061 1,909,047 $ 75,644,588 72,419 3,811,054 1,373,667 1,576,052 70,061 130,540 1,419,322 20,996,165 31,971,409 46,904,752 78,876,161 123,486,377 60,483,652 183,970,029 2,116,762 629,279 2,746,041 Total deferred outflows of resources 2,116,762 629,279 2,746,041 LIABILITIES Accounts payable Retainage payable Accrued interest expense Other accrued expenses Customer deposits Unearned revenue Leases, due within one year Leases, due in more than one year Compensated absences due within one year Compensated absences due in more than one year Bonds payable due within one year Bonds payable due in more than one year Net pension liability due in more than one year 1,285,656 238,244 471,241 1,176,030 32,529 104,693 245,289 981,155 2,225,000 15,220,000 3,874,391 465,548 123,380 57,850 231,684 2,581,297 45,403 181,613 1,151,796 1,751,204 123,380 238,244 529,091 231,684 3,757,327 32,529 104,693 290,692 1,162,768 2,225,000 15,220,000 5,026,187 25,854,228 4,838,571 30,692,799 48,568,371 31,738,847 2,550,935 741,081 5,000 9,446 16,135,231 48,690,419 7,583,941 97,258,790 31,738,847 2,550,935 741,081 5,000 9,446 23,719,172 Total assets DEFERRED OUTFLOWS OF RESOURCES Pension Total liabilities NET POSITION Net investment in capital assets Restricted for capital projects Restricted for public safety Restricted for tourism Restricted for cemetery maintenance - non-expendable Restricted for cemetery maintenance - expendable Unrestricted Total net position $ The accompanying notes are an integral part of these financial statements. 14 99,748,911 $ 56,274,360 $ 156,023,271 CITY OF STOCKBRIDGE, GEORGIA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Functions/Programs Primary government Governmental activities: General government Judicial Public safety Public works Culture and recreation Housing and development Interest on long-term debt Total governmental activities Business-type activities: Water and sewer Stormwater Solid waste Amphitheater Conference center Total business-type activities Total primary government Program Revenues Capital Charges for Grants and Services Contributions Expenses $ $ 6,784,010 1,007,011 11,201,320 10,225,698 8,949 4,069,160 612,001 33,908,149 5,706,357 993,318 2,531,154 3,962,337 915,342 14,108,508 48,016,657 $ $ 2,627,673 1,105,257 3,732,930 5,510,461 1,421,306 2,931,582 1,633,859 161,877 11,659,085 15,392,015 $ $ General revenues: Property taxes Franchise taxes Alcoholic beverage excise taxes Business and occupation taxes Insurance premium taxes Hotel/motel taxes Other taxes Unrestricted investment earnings Transfers Total general revenues and transfers Change in net position Net position, beginning of year, as previously reported Restatement - error correction Net position, beginning of year, as restated Net position, end of year The accompanying notes are an integral part of these financial statements. 15 7,389,171 792,024 9,244,124 7,364,218 328 3,313,132 28,102,997 28,102,997 Net (Expenses) Revenues and Changes in Net Position Governmental Activities $ $ 3,232,834 890,270 (1,957,196) (2,861,480) (8,621) (756,028) (612,001) (2,072,222) Business-type Activities $ Total - $ 3,232,834 890,270 (1,957,196) (2,861,480) (8,621) (756,028) (612,001) (2,072,222) (2,072,222) (195,896) 427,988 400,428 (2,328,478) (753,465) (2,449,423) (2,449,423) (195,896) 427,988 400,428 (2,328,478) (753,465) (2,449,423) (4,521,645) 8,137,253 1,979,543 881,877 1,696,328 3,880,138 1,289,772 285,025 739,506 (5,172,895) 13,716,547 11,644,325 87,454,929 649,657 88,104,586 99,748,911 1 5,172,895 5,172,896 2,723,473 52,996,126 554,761 53,550,887 56,274,360 8,137,253 1,979,543 881,877 1,696,328 3,880,138 1,289,772 285,025 739,507 18,889,443 14,367,798 140,451,055 1,204,418 141,655,473 156,023,271 $ $ 16 CITY OF STOCKBRIDGE, GEORGIA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2025 General Fund ASSETS Cash and cash equivalents Investments Taxes receivable Accounts receivable Due from other governments Due from other funds Prepaid expenditures Assets held for resale ARPA Fund Grants Fund $ 1,484,143 2,551,655 169,079 796,413 19,463,728 71,479 1,419,322 $ - $ 716,296 615,215 - $ 25,955,819 $ - $ 1,331,511 $ 839,793 468,863 1,176,030 $ $ 5,070,054 - 9,734 2,378 - 7,554,740 - 12,112 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - grants Unavailable revenue - court fines Unavailable revenue - property taxes 127,907 359,318 - 611,203 - Total deferred inflows of resources 487,225 - 611,203 71,479 1,419,322 - - Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable Accrued liabilities Unearned revenue - occupational taxes Unearned revenue - grants Due to other funds Total liabilities FUND BALANCES Non-spendable: Prepaids Permanent fund corpus Assets held for resale Restricted for: Capital projects Public safety Tourism Cemetery maintenance Assigned for: Capital projects Unassigned - - 708,196 - 16,423,053 - - Total fund balances 17,913,854 - 708,196 Total liabilities, deferred inflows of resources and fund balances $ 25,955,819 $ - $ 1,331,511 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets and lease assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. The net pension liability and related deferred outflows and inflows of resources are not financial resources and, therefore, are not reported in the governmental funds. Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net position of governmental activities The accompanying notes are an integral part of these financial statements. 17 Public Facilities Authority SPLOST V Fund SPLOST VI Fund Nonmajor Governmental Funds TSPLOST Fund Total Governmental Funds $ 15,092,066 - $ 20,330,586 2,943,169 - $ 3,144,167 638,973 - $ 20,836,425 617,846 - $ 5,900,822 14,419 2,580 153,249 519,453 - $ 66,788,209 14,419 3,811,054 322,328 1,512,709 23,541,565 71,479 1,419,322 $ 15,092,066 $ 23,273,755 $ 3,783,140 $ 21,454,271 $ 6,590,523 $ 97,481,085 $ - $ 116,214 19,705,065 $ 206,968 - $ 41,215 - $ 71,732 278,116 $ 1,285,656 471,241 1,176,030 25,053,235 $ - 19,821,279 206,968 41,215 349,848 27,986,162 - - - - - 611,203 127,907 359,318 - - - - - 1,098,428 - - - - 5,000 - 71,479 5,000 1,419,322 15,092,066 - 3,452,476 - 3,576,172 - 21,413,056 - 3,297,143 1,842,739 741,081 9,446 46,830,913 2,550,935 741,081 9,446 - - - - 353,351 (8,085) 353,351 16,414,968 15,092,066 3,452,476 3,576,172 21,413,056 6,240,675 68,396,495 15,092,066 $ 23,273,755 $ 3,783,140 $ 21,454,271 $ 6,590,523 51,058,527 1,098,428 $ 18 (1,757,629) (19,046,910) 99,748,911 CITY OF STOCKBRIDGE, GEORGIA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 General Fund Revenues Taxes Licenses and permits Intergovernmental Fines and forfeitures Charges for services Impact fees Contributions Interest income Other revenues Total revenues Expenditures Current: General government Judicial Public safety Public works and parks Culture and recreation Housing and development Capital outlay: General government Public works Culture and recreation Debt service: Principal Interest Total expenditures $ ARPA Fund 16,684,424 1,561,473 8,921,296 1,105,257 798,535 28,499 737,371 239,166 30,076,021 $ Grants Fund 961,895 961,895 $ 1,509,886 1,509,886 7,771,438 837,449 8,884,845 4,863,349 328 2,605,756 851,072 786,803 680,999 - - 110,823 - - 30,264 11,135 25,004,564 961,895 1,467,802 Excess (deficiency) of revenues over (under) expenditures 5,071,457 - 42,084 Other financing sources (uses) Proceeds from sale of assets Transfers in Transfers out 36,100 22,126,610 (12,246,536) - (6,234) Total other financing sources (uses) 9,916,174 - (6,234) Net change in fund balances 14,987,631 - 35,850 Fund balances, beginning of year, as previously reported 1,920,655 - 472,346 Restatement - error correction 1,005,568 - 200,000 Fund balances, beginning of year, as restated 2,926,223 - 672,346 Fund balances, end of year $ The accompanying notes are an integral part of these financial statements. 19 17,913,854 $ - $ 708,196 Public Facilities Authority $ $ SPLOST V Fund - $ SPLOST VI Fund 2,556,967 140 2,557,107 $ Total Nonmajor Governmental Funds TSPLOST Fund 4,986,709 4,986,709 $ 7,251,139 7,251,139 $ Total Governmental Funds 1,289,772 1,066,164 2,135 848,801 3,206,872 $ 17,974,196 1,561,473 26,187,892 1,105,257 798,535 1,066,164 28,499 739,646 1,087,967 50,549,629 369 - - - - 762,759 911 612,332 7,771,807 837,449 10,434,407 5,545,259 328 4,069,160 - 1,526,212 269,211 1,410,537 - 2,041,917 - 63,482 - 63,482 5,089,489 269,211 4,050,000 336,740 4,387,109 1,795,423 1,410,537 2,041,917 890,000 309,562 2,639,046 4,970,264 657,437 39,708,293 (4,387,109) 761,684 3,576,172 5,209,222 567,826 10,841,336 4,386,740 - (19,185,612) - - 2,928,851 (2,934,764) 36,100 29,442,201 (34,373,146) 4,386,740 (19,185,612) - - (5,913) (4,894,845) (369) (18,423,928) 3,576,172 5,209,222 561,913 5,946,491 15,092,435 21,876,404 - 15,613,622 5,678,762 60,654,224 - - - 590,212 - 1,795,780 15,092,435 21,876,404 - 16,203,834 5,678,762 62,450,004 15,092,066 $ 3,452,476 $ 3,576,172 $ 20 21,413,056 $ 6,240,675 $ 68,396,495 CITY OF STOCKBRIDGE, GEORGIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Amounts reported for governmental activities in the Statement of Activities are different because: Net change in fund balances - total governmental funds $ 5,946,491 Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation and amortization expense in the current period. 1,373,933 The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to decrease net position. (241,950) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 175,740 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. 4,970,264 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (580,153) Changes in net position - governmental activities $ The accompanying notes are an integral part of these financial statements. 21 11,644,325 CITY OF STOCKBRIDGE, GEORGIA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Budget Original Revenues Property taxes Other taxes Licenses and permits Intergovernmental Fines and forfeitures Charges for services Contributions Interest income Other revenues Total revenues $ Expenditures Current: General government: Mayor and council Executive City manager Financial administration Business services Data processing Building and plant Human resources Total general government Final 7,189,056 6,993,300 1,478,500 10,195,512 1,410,000 690,800 25,700 1,800 405,126 28,389,794 $ Variance With Final Budget Actual 6,958,237 9,254,480 1,561,473 8,921,296 1,226,939 794,334 28,499 737,371 251,530 29,734,159 $ 7,186,782 9,497,642 1,561,473 8,921,296 1,105,257 798,535 28,499 737,371 239,166 30,076,021 $ 228,545 243,162 (121,682) 4,201 (12,364) 341,862 581,904 439,020 794,655 2,681,792 261,723 891,286 1,073,708 981,003 7,705,091 570,715 448,266 584,761 2,357,565 246,134 1,009,048 1,096,533 1,502,812 7,815,834 567,362 446,866 521,244 2,395,745 243,833 989,470 1,098,918 1,508,000 7,771,438 3,353 1,400 63,517 (38,180) 2,301 19,578 (2,385) (5,188) 44,396 Judicial: 766,406 840,279 837,449 2,830 Public safety: Police administration Municipal court 8,867,557 8,458,708 8,884,845 (426,137) Public works: Public works Parks Total public works 4,235,046 221,000 4,456,046 4,051,228 211,960 4,263,188 4,653,088 210,261 4,863,349 (601,860) 1,699 (600,161) - - 328 328 (328) (328) 243,059 1,386,893 670,259 670,000 2,970,211 190,044 1,000,102 663,062 762,256 2,615,464 188,912 997,208 661,381 758,255 2,605,756 1,132 2,894 1,681 4,001 9,708 Debt service: Principal Interest Total debt service - - 30,264 11,135 41,399 (30,264) (11,135) (41,399) Total expenditures 24,765,311 23,993,473 25,004,564 (1,011,091) Excess of revenues over expenditures 3,624,483 5,740,686 5,071,457 (669,229) 634,517 215,000 (4,525,000) (3,675,483) 444,020 750,852 (6,935,558) (5,740,686) 36,100 22,126,610 (12,246,536) 9,916,174 (407,920) 21,375,758 (5,310,978) 15,656,860 Culture and recrecation: Community Center Total culture and recreation Housing and development: Main street Planning and zoning Permitting development City events Total housing and development Other financing sources (uses) Proceeds from sale of assets Transfers in Transfers out Total other financing sources (uses), net (51,000) - 14,987,631 14,987,631 Fund balances, beginning of year, as previously reported Net change in fund balances 1,920,655 1,920,655 1,920,655 - Restatement - error correction 1,005,568 1,005,568 1,005,568 - Fund balances, beginning of year, as restated 2,926,223 2,926,223 2,926,223 - Fund balances, end of year $ 2,875,223 The accompanying notes are an integral part of these financial statements. 22 $ 2,926,223 $ 17,913,854 $ 14,987,631 CITY OF STOCKBRIDGE, GEORGIA ARPA FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Budget Original/Final Revenues Intergovernmental Total revenues $ Expenditures Current: General government: Financial administration Total general government Variance With Final Budget Actual 961,395 961,395 $ 961,895 961,895 $ 500 500 26,000 26,000 - 26,000 26,000 850,574 851,072 (498) 850,574 851,072 (498) 500 Housing and development: City events Total housing and development Capital outlay: Public safety 500 - Public works 110,823 110,823 - Total capital outlay 111,323 110,823 500 Total expenditures 987,897 961,895 26,002 (26,502) - 26,502 Deficiency of revenues under expenditures Other financing sources Transfers in 26,502 - (26,502) Total other financing sources 26,502 - (26,502) Net change in fund balances - - - Fund balances, beginning of year - - - Fund balances, end of year $ The accompanying notes are an integral part of these financial statements. 23 - $ - $ - CITY OF STOCKBRIDGE, GEORGIA GRANTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Budget Original/Final Revenues Intergovernmental Other revenues Total revenues $ Expenditures Current: Public safety Public works Total expenditures Variance With Final Budget Actual 1,709,887 219,755 1,929,642 $ 1,509,886 1,509,886 $ (200,001) (219,755) (419,756) 1,248,643 680,999 786,803 680,999 461,840 - 1,929,642 1,467,802 461,840 - 42,084 42,084 Excess of revenues over expenditures Other financing uses Transfers out - (6,234) (6,234) Total other financing uses - (6,234) (6,234) Net change in fund balances - 35,850 (35,850) Fund balance, beginning of year, as previously reported 472,346 472,346 - Restatement - error correction 200,000 200,000 - Fund balance, beginning of year, as restated 672,346 672,346 - Fund balance, end of year $ The accompanying notes are an integral part of these financial statements. 24 672,346 $ 708,196 $ (35,850) CITY OF STOCKBRIDGE, GEORGIA STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2025 Water and Sewer Fund Solid Waste Fund Nonmajor Enterprise Funds Amphitheater Fund Total ASSETS CURRENT ASSETS Cash and cash equivalents Investments Accounts receivable, net of allowances Due from other governments Due from other funds Inventories Prepaid expenses $ 1,699,442 58,000 540,161 11,768 70,061 54,421 $ 4,148,533 143,757 25,302 - $ 1,253,409 594,659 2,400 $ 1,754,995 367,421 26,273 917,011 2,240 $ 8,856,379 58,000 1,051,339 63,343 1,511,670 70,061 59,061 Total current assets 2,433,853 4,317,592 1,850,468 3,067,940 11,669,853 NON-CURRENT ASSETS Capital assets: Capital assets, non-depreciable Capital assets, depreciable, net of accumulated depreciation 1,880,406 - - 28,641 1,909,047 23,332,630 19,872 19,842,041 3,710,209 46,904,752 Total capital assets 25,213,036 19,872 19,842,041 3,738,850 48,813,799 Total assets 27,646,889 4,337,464 21,692,509 6,806,790 60,483,652 DEFERRED OUTFLOWS OF RESOURCES Pension 310,458 27,371 - 291,450 629,279 310,458 27,371 - 291,450 629,279 96,698 123,380 32,428 17,720 195,464 216,535 1,623 2,581,297 1,621 - 133,277 - 19,038 23,799 26,062 36,220 465,548 123,380 57,850 2,581,297 45,403 231,684 Total current liabilities 465,690 2,801,076 133,277 105,119 3,505,162 NON-CURRENT LIABILITIES Compensated absences due in more than one year Net pension liability Total non-current liabilities 70,882 568,244 639,126 6,485 50,098 56,583 - 104,246 533,454 637,700 181,613 1,151,796 1,333,409 1,104,816 2,857,659 133,277 742,819 4,838,571 25,089,656 1,762,875 26,852,531 19,872 1,487,304 1,507,176 19,842,041 1,717,191 21,559,232 3,738,850 2,616,571 6,355,421 48,690,419 7,583,941 56,274,360 Total deferred outflows of resources LIABILITIES CURRENT LIABILITIES Accounts payable Retainage payable Accrued liabilities Unearned revenue Compensated absences due within one year Customer deposits Total liabilities NET POSITION Net investment in capital assets Unrestricted Total net position $ The accompanying notes are an integral part of these financial statements. 25 $ $ $ $ CITY OF STOCKBRIDGE, GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Water and Sewer Fund OPERATING REVENUES Charges for services: Water sales Sewer sales Ticket sales Concession sales Stormwater fees Sanitation charges Sponsorships Rentals Rents and royalties Other fees and charges Total operating revenues $ 3,126,465 2,299,920 84,076 5,510,461 Solid Waste Fund $ Nonmajor Enterprise Funds Amphitheater Fund 2,833,905 97,677 2,931,582 $ 1,204,257 7,651 379,000 42,875 76 1,633,859 $ Total 1,421,306 161,877 1,583,183 $ 3,126,465 2,299,920 1,204,257 7,651 1,421,306 2,833,905 379,000 259,554 42,875 84,152 11,659,085 OPERATING EXPENSES Personnel services and employee benefits Contracted services Supplies Repairs and maintenance Bad debt expense Depreciation Total operating expenses 1,633,110 698,390 2,003,286 33,938 25,349 1,284,577 5,678,650 104,886 2,408,016 3,279 14,973 2,531,154 3,329,668 632,669 3,962,337 1,284,786 118,532 129,945 133,509 241,888 1,908,660 3,022,782 6,554,606 2,136,510 167,447 25,349 2,174,107 14,080,801 Operating income (loss) (168,189) 400,428 (2,328,478) (325,477) (2,421,716) 1 (27,707) - - - 1 (27,707) (27,706) - - - (27,706) (195,895) 400,428 (2,328,478) (325,477) (2,449,422) CAPITAL CONTRIBUTIONS 193,560 - - 48,390 241,950 TRANSFERS IN 765,000 - 3,600,000 565,945 4,930,945 762,665 400,428 1,271,522 288,858 2,723,473 25,695,918 1,106,748 20,287,710 5,905,750 52,996,126 393,948 - - 160,813 554,761 26,089,866 1,106,748 20,287,710 6,066,563 53,550,887 NON-OPERATING EXPENSE Interest income Interest expense Total non-operating expenses Income (loss) before capital contributions and transfers Change in net position NET POSITION, beginning of year, as previously reported Restatement - error correction NET POSITION, beginning of year, as restated NET POSITION, end of year $ 26,852,531 The accompanying notes are an integral part of these financial statements. 26 $ 1,507,176 $ 21,559,232 $ 6,355,421 $ 56,274,360 CITY OF STOCKBRIDGE, GEORGIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Water and Sewer Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and service providers $ Solid Waste Fund 5,551,433 $ Nonmajor Enterprise Funds Amphitheater Fund 2,829,115 $ 1,633,859 $ Totals 1,541,999 $ 11,556,406 (2,804,119) (1,557,037) (2,414,830) (96,061) (3,824,392) - (1,291,210) (1,180,051) (10,334,551) (2,833,149) 1,190,277 318,224 (2,190,533) (929,262) (1,611,294) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers from other funds 765,000 - 3,600,000 565,945 4,930,945 Net cash provided by non-capital financing activities 765,000 - 3,600,000 565,945 4,930,945 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of property and equipment Principal payments on notes payable Interest paid (1,344,327) (823,674) (27,707) - (212,850) - (34,980) - (1,592,157) (823,674) (27,707) Net cash used in capital and related financing activities (2,195,708) - (212,850) (34,980) (2,443,538) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 1 - - - 1 Net cash provided by investing activities 1 - - - 1 (240,430) 318,224 1,196,617 (398,297) 876,114 1,939,872 3,830,309 56,792 2,153,292 7,980,265 Payments to employees Net cash provided by (used in) operating activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents: Beginning of year End of year $ 1,699,442 $ (Continued) 27 4,148,533 $ 1,253,409 $ 1,754,995 $ 8,856,379 CITY OF STOCKBRIDGE, GEORGIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Water and Sewer Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating income (loss) $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation Decrease (increase) in accounts receivable Decrease in inventories Decrease in prepaid expenses Decrease (increase) in due from other governments Increase in due from other funds Increase in deferred outflows of resources - pension Increase in customer deposits (Decrease) in due to other funds Increase in accrued liabilities Increase (decrease) in accounts payable Increase in retainage payable (Decrease) in unearned revenue (Decrease) in deferred inflows of resources - pension Increase in net pension liability Net cash provided by (used in) operating activities $ SCHEDULE OF NON-CASH CAPITAL AND RELATED FINANCING ACTIVITIES Contributions of capital assets from other funds Net non-cash flows from capital and related financing activities (168,189) Solid Waste Fund $ Nonmajor Enterprise Funds Amphitheater Fund 400,428 $ (2,328,478) $ (325,477) Total $ (2,421,716) 1,284,577 9,469 48,593 9,072 2,199 - 14,973 11,931 (14,017) - 632,669 1,952 (594,659) 241,888 (29,474) 459 (18,097) - 2,174,107 (8,074) 48,593 11,483 (29,915) (594,659) (102,184) 29,304 21,968 (224,201) 123,380 - (9,009) 4,055 (3,535) (100,381) (104) 98,087 - (95,927) 6,387 (917,011) 53,941 7,328 - (207,120) 35,691 (917,115) 79,964 (122,321) 123,380 (100,381) (43,452) 199,741 (3,831) 17,610 - (40,791) 187,512 (88,074) 404,863 1,190,277 $ 318,224 $ (2,190,533) $ (929,262) $ (1,611,294) $ 193,560 $ - $ - $ 48,390 $ 241,950 $ 193,560 $ - $ - $ 48,390 $ 241,950 The accompanying notes are an integral part of these financial statements. 28 CITY OF STOCKBRIDGE, GEORGIA STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUND DECEMBER 31, 2025 Property and Evidence Fund ASSETS Cash $ Total assets 70,321 70,321 NET POSITION Restricted for organizations and other governments $ The accompanying notes are an integral part of these financial statements. 29 70,321 CITY OF STOCKBRIDGE, GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Property and Evidence Fund ADDITIONS Fines and forfeitures collected $ 14,358 DEDUCTIONS Fines and forfeitures disbursed 79,080 Change in net position (64,722) NET POSITION Beginning of year 135,043 End of year $ The accompanying notes are an integral part of these financial statements. 30 70,321 NOTES TO FINANCIAL STATEMENTS CITY OF STOCKBRIDGE, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2025 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Stockbridge, Georgia (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as applied to governments. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity The City was incorporated in 1920 and is located in the northern part of Henry County about 18 miles south of Atlanta. The City provides a full range of services to approximately 36,331 residents. These services are provided in whole by the City or through contractual agreements with Henry County. These services include public safety, community development, highways and streets, water and sewer, sanitation, parks, public works, planning and zoning, and general administrative services. In 2013, the City adopted the provisions of GASB Statement No. 61, The Financial Reporting Entity: Omnibus – an amendment to GASB Nos. 14 and 34, which defines the reporting entity for determining which potential component units should be included in the primary government’s financial statements. Inclusion is based on financial accountability or the fact that exclusion would make the financial statements misleading or incomplete. The criterion for determining financial accountability includes appointing a voting majority of an organization’s governing body and: 1) the ability of the City to impose its will on that organization, or 2) the potential for the organization to provide specific financial benefits or to impose specific financial burdens on the City. In addition to the above criteria, GASB Statement No. 61 added that if the primary government is expected to repay substantially all of the component unit’s debt, then the component unit should be blended. Blended Component Units - Blended component units, although legally separate entities, are, in substance, part of the government’s operations. The City of Stockbridge Urban Redevelopment Agency (the “URA”) was created by the City’s elected officials to provide for the issuance of bonds to finance the construction of the Town Center facilities including City Hall. The City Council appoints the majority of the URA board members, and the URA’s debt is expected to be repaid almost entirely from the resources of the City. Although legally separate, the URA is blended as a governmental fund into the primary government. Separate financial statements for the URA are not issued. 31 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-wide and Fund Financial Statements The City of Stockbridge Public Facilities Authority (the “PFA”) was created by the City’s elected officials to provide for the issuance of bonds to finance the construction of the Amphitheater and Cultural Arts Center, to fund the Trails Project, and to fund purchase of police equipment. The City Council appoints the majority of the PFA board members, and the PFA’s debt is expected to be repaid almost entirely from the resources of the City. Although legally separate, the PFA is blended as a governmental fund into the primary government. Separate financial statements for the PFA are not issued. The City of Stockbridge Downtown Development Authority (the “DDA”) exists to encourage growth and redevelopment of the Stockbridge, Georgia central business district. The City Council appoints the majority of the DDA board members, and the DDA’s debt is expected to be repaid almost entirely from the resources of the City. Although legally separate, the DDA is blended as a nonmajor governmental fund into the primary government. Separate financial statements for the DDA are not issued. The City of Stockbridge City-wide Development Authority (the “CDA”) exists to stimulate economic and quality growth throughout the entire city of Stockbridge, Georgia. The City Council appoints the majority of the CDA board members, and the CDA’s debt is expected to be repaid almost entirely from the resources of the City. Although legally separate, the CDA is blended as a nonmajor governmental fund into the primary government. Separate financial statements for the CDA are not issued. The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to those who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual Enterprise Funds are reported as separate columns in the fund financial statements. 32 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Capital asset acquisitions, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under financed purchases and leases are reported as other financing sources. Issuance of long-term debt and financing through leases are reported as other financing sources. Property taxes, intergovernmental grants and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. Substantially all governmental fund revenues are accrued. In applying GASB Statement No. 33 to grant revenues, the provider recognizes liabilities and expenses, and the recipient recognizes receivables and revenues when the applicable eligibility requirements, including time requirements, are met. Resources transmitted before the eligibility requirements are met, are reported as advances by the provider and unearned revenue by the recipient. The format of the fund financial statements has been modified by GASB Statement No. 34. Major individual governmental funds and major individual Enterprise Funds are reported as separate columns in the fund financial statements. GASB Statement No. 34 also requires, as Required Supplementary Information (“RSI”), the Management’s Discussion and Analysis (“MD&A”) which includes an analytical overview of the City’s financial activity. 33 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The American Rescue Plan Act (“ARPA”) Fund is used for accounting for the financial resources provided and subsequently expended from the ARPA grant received from the federal government. The Grants Fund accounts for various intergovernmental revenues received and expended. The Public Facilities Authority (“PFA”) accounts for capital expenditures. Funding is provided by bonds issued in fiscal year 2021. The Special Purpose Local Option Sales Tax (“SPLOST”) V Fund accounts for capital expenditures. Funding is provided by special purpose sales taxes, which are collected by Henry County and remitted to the City through an intergovernmental agreement. The Special Purpose Local Option Sales Tax (“SPLOST”) VI Fund accounts for capital expenditures. Funding is provided by special purpose sales taxes, which are collected by Henry County and remitted to the City through an intergovernmental agreement. The Transportation Special Purpose Local Option Sales Tax (“TSPLOST”) Fund accounts for capital expenditures. Funding is provided by special purpose sales taxes, which are collected by Henry County and remitted to the City through an intergovernmental agreement. The City reports the following major proprietary funds: The Water and Sewer Fund accounts for the operation of the water and sewerage system including all revenues from sources applicable to these operations and all expenses of the operation. The Solid Waste Fund accounts for revenues generated from the charges for sanitation and recycling services provided to the residential and commercial users of the City. The Amphitheater Fund accounts for activities related to the Amphitheater. 34 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The Property and Evidence Fund accounts for money collected and disbursed by the City on behalf of other governments, organizations, and individuals, such as fines and forfeitures. A liability is recorded when an event compels a government to disburse fiduciary resources. This fund meets the criteria under GASB Statement No. 84 to be reported as a Custodial Fund. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City’s water and sewer function and the other functions of the government. Elimination of these charges would distort the direct costs reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are charges for goods and services provided. Operating expenses of the enterprise funds include the cost of these goods and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. D. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. E. Cash and Investments Cash includes amounts in demand deposits as well as short-term investments with a maturity date within three months of the date acquired by the City. For purposes of the Statement of Cash Flows, the Enterprise Funds consider all highly liquid investments (including restricted assets) with a maturity date of three months or less when purchased to be cash equivalents. The City’s investments consist of Certificates of Deposit with a maturity date greater than three months from the date of purchase. For reporting purposes, all investments are recorded at fair value. 35 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Cash and Investments (Continued) State statutes authorize the City to invest in: obligations of the United States, the State of Georgia and other political subdivisions of the State of Georgia, and other states; prime bankers’ acceptances; repurchase agreements; and the Georgia Fund 1. The City’s policy is to hold investments to maturity. In applying GASB Statement No. 72, the City utilized the following methods and assumptions as of December 31, 2025: 1. Fair value is based on quoted market prices as of the valuation date; and 2. The investment portfolio did not hold investments in any of the following: a) items required to be reported at amortized costs; b) items subject to involuntary participation in an external pool; and c) items associated with a fund other than the fund to which the income is assigned. F. Inventories Inventories are valued at cost, which approximates market, using the first in/first out (“FIFO”) method. The consumption method is used to account for inventories. Under the consumption method, inventory items are recognized as expenditures when used. G. Prepaid Expenditures/Expenses Prepaid items are accounted for using the consumption method. A prepaid item is recognized when a cash expenditure/expense is made for goods or services that were purchased for consumption, but not consumed as of December 31, 2025. H. Deferred Outflows/Inflows In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items that qualify for reporting in this category. These three items relate to the City’s defined benefit pension plan. The pension experience differences, the pension investment earnings difference, and the contributions made subsequent to the measurement date are deferred and recognized as pension expense in future years. 36 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Deferred Outflows/Inflows (Continued) In addition to liabilities, the Statement of Net Position and/or the Governmental Funds Balance Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item that qualifies for reporting in this category. This item, unavailable revenue, arises only under the modified accrual basis of accounting, and is reported only in the Governmental Funds Balance Sheet. The governmental funds report unavailable revenue for property taxes, court fines, and grants, and these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available. I. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Stockbridge Retirement Plan (the “Plan”) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. J. Capital Assets General capital assets are capital assets which are associated with and generally arise from governmental activities. They generally result from expenditures in governmental funds. General capital assets are reported in the governmental activities’ column of the government-wide Statement of Net Position but are not reported in the fund financial statements. Capital assets utilized by the proprietary funds are reported both in the business-type activities column of the government-wide Statement of Net Position and in respective funds. 37 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capital Assets (Continued) Capital assets purchased or acquired with an original cost of $5,000 or more are reported at historical cost or estimated historical cost. Contributed assets are reported at acquisition value. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on capital assets and amortization on right to use lease assets is provided on the straight-line basis over the following estimated useful lives: Asset Building and improvements Improvements other than buildings Furniture and fixtures Vehicles Machinery and equipment Office equipment Years 30 – 50 25 – 50 10 – 20 5 – 10 5 – 10 5 – 10 The City only reports infrastructure assets purchased subsequent to December 31, 2003. K. Compensated Absences In 2017, the City switched from using a Paid Time Off (“PTO”) system to a compensated absences system. Under the compensated absences system, the City accrues accumulated unpaid vacation and sick benefits. Annual leave will be paid to employees upon separation from service when earned (or estimated to be earned) by the employee. The non-current portion (the amount estimated to be used in subsequent fiscal years) for governmental funds is maintained separately and represents a reconciling item between the fund and government-wide presentations. In accordance with the provisions of GASB Statement No. 101, the City also accrues an estimate of sick time to be used by employees as paid time off in the future. L. Accrued Liabilities and Long-Term Obligations All payables, accrued liabilities, and long-term obligations are reported in the government-wide financial statements. All payables, accrued liabilities, and long-term obligations payable from proprietary funds are reported on the proprietary fund financial statements. 38 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Accrued Liabilities and Long-Term Obligations (Continued) In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources and are reported as obligations of the funds. However, claims and judgments and compensated absences that will be paid from governmental funds are reported as liabilities in the fund financial statements only to the extent that they are due for payment during the current year. Long-term loans are recognized as a liability on the governmental fund financial statements when due. M. Leases Lessee. The City is a lessee for noncancellable leases of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset in the government-wide financial statements. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to leases include how the City determines: 1) the discount rate it uses to discount the expected lease payments to present value, 2) lease term, and 3) lease payments.   The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period for the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option prices that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affected the amount of the lease liability. Lease assets are reported with capital assets and lease liabilities are reported with non-current liabilities on the Statement of Net Position. 39 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Interfund Activity Interfund activity is reported as either loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be market or near market rates, are treated as revenues and expenditures/expenses and are not eliminated in the process of consolidation. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental funds are netted as part of the reconciliation to the government-wide financial statements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. O. Budgets and Budgetary Accounting The City adopts project length budgets for the SPLOST Capital Projects Funds, the Public Facilities Authority Fund, the City-wide Capital Projects Fund, the TSPLOST Fund, and the State and Federal Grants Fund. The City adopts an annual budget for the ARPA Fund, Hotel/Motel Fund, Grants Fund, Burke Cemetery Fund, the Downtown Development Fund, the Urban Redevelopment Fund, City-wide Development Fund, and the Impact Fee Fund. The City is required by state law to adopt annual budgets for the General Fund and its Special Revenue Funds (ARPA Fund, Hotel/Motel Tax Fund, and Grants Fund). A budget was not required for the Confiscated Assets Fund. Public hearings are conducted to obtain taxpayer comments. The operating budget includes proposed expenditures and the means of financing them. The budget is legally enacted by the passage of an ordinance. Any revisions that alter the total expenditures of any department must be approved by City Council. Formal budgetary integration is employed as a management control device during the year. Governmental fund type budgets are adopted on a basis consistent with GAAP at the legal level of budgetary control which is the department level. Expenditures may not exceed the appropriations within a fund. Budgets, as reported in the financial statements, are as amended in December 2025. All annual appropriations lapse at year-end. For the year ended December 31, 2025, the following General Fund departments had actual expenditures in excess of budgeted amounts: Financial administration $38,180, Building and plant $2,385, Human resources $5,188, Police administration $426,137, Public works $601,860, Community center $328, and Debt service $41,399. The ARPA Fund had actual expenditures in excess of budget amounts for City events in the amount of $498. The City-wide Development Fund had actual expenditures in excess of budget amount for General government in the amount of $17,988. The Downtown Development Fund had actual expenditures in excess of budget amounts for Housing and development in the amount of $40,877. These over expenditures were covered by under expenditures in other departments. 40 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance and Fund Net Position Fund Balance – Generally, fund balance represents the difference between the assets and deferred outflows, and liabilities and deferred inflows under the current financial resources measurement focus of accounting. In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balances are classified as follows:  Nonspendable – Fund balances are reported as nonspendable when amounts cannot be spent because they are either: a) not in spendable form (i.e., items that are not expected to be converted to cash), or b) legally or contractually required to be maintained intact.  Restricted – Fund balances are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments.  Committed – Fund balances are reported as committed when they can be used only for specific purposes pursuant to constraints imposed by formal action of the City Council. The action to commit funds must occur prior to fiscal year-end, to report such commitments in the balance sheet of the respective period, even though the amount may be determined subsequent to fiscal year-end. Only the City Council may modify or remove the commitment.  Assigned – Fund balances are reported as assigned when amounts are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. Through resolution, the City Council has authorized the Treasurer and his designee to assign fund balances. Assignments may occur subsequent to fiscal year-end.  Unassigned – Fund balances are reported as unassigned when the balances do not meet any of the above criterion. The City reports positive unassigned fund balances only in the General Fund. All funds may report negative unassigned fund balances. Flow Assumptions – When both restricted and unrestricted amounts of fund balances are available for use for expenditures incurred, it is the City’s policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balances, it is the City’s policy to use fund balances in the following order: 1) committed; 2) assigned; and 3) unassigned. 41 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance and Fund Net Position (Continued) Net Position – Net position represents the difference between assets and deferred outflows, and liabilities and deferred inflows in reporting which utilizes the economic resources measurement focus. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used (i.e., the amount that the City has spent) for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through constitutional provisions or enabling legislation or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. The City applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net position is available. NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position The Governmental Funds Balance Sheet includes a reconciliation between fund balances – total governmental funds and net position – governmental activities as reported in the government-wide Statement of Net Position. One element of that reconciliation explains that “Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.” The details of this difference are as follows: Accrued interest payable Compensated absences payable Bonds payable Leases Net adjustment to reduce fund balances - total governmental funds to arrive at net position - governmental activities $ (238,244) (1,226,444) (17,445,000) (137,222) $ (19,046,910) Another element of that reconciliation explains that “the net pension liability and related deferred outflows and inflows of resources are not financial resources and, therefore, are not reported in the governmental funds.” The details of this difference are as follows: Deferred outflows of resources - pension Net pension liability Net adjustment to reduce fund balances - total governmental funds to arrive at net position - governmental activities 42 $ 2,116,762 (3,874,391) $ (1,757,629) NOTES TO FINANCIAL STATEMENTS NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FUND FINANCIAL STATEMENTS (CONTINUED) B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities The governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide Statement of Activities. One element of that reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their useful lives and reported as depreciation expense.” The details of this difference are as follows: Capital outlay Depreciation and amortization expense Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ 3,802,330 (2,428,397) $ 1,373,933 Another element of that reconciliation states that “The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.” The details of this difference are as follows: Principal payments: bonds payable Principal payments: leases Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ 4,940,000 30,264 $ 4,970,264 Another element of that reconciliation states that “Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.” The details of this difference are as follows: Compensated absences Pension expense Accrued interest Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities 43 $ (264,869) (360,720) 45,436 $ (580,153) NOTES TO FINANCIAL STATEMENTS NOTE 3. CASH AND INVESTMENTS Credit Risk. State statutes authorize the City to invest in: obligations of the United States, the State of Georgia and other political subdivisions of the State of Georgia, and other states; prime bankers' acceptances; repurchase agreements; and Georgia Fund 1. Interest Rate Risk. The City does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Custodial Credit Risk – Deposits. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. State statutes require all deposits and investments (other than federal or state government instruments) to be collateralized by depository insurance, obligations of the U.S. government, or bonds of public authorities, counties, or municipalities. As of December 31, 2025, all of the deposits for the City were fully collateralized in accordance with the state statutes. Fair Value Measurements. The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. Georgia Fund 1 is an investment pool which does not meet the criteria of GASB Statement No. 79 and is thus valued at fair value in accordance with GASB Statement No. 31. As a result, the City does not disclose the investment in Georgia Fund 1 within the fair value hierarchy. Additionally, the City’s Certificates of Deposit are nonnegotiable and, therefore, are not subject to fair value hierarchy. Investments. The City’s financial policies authorize investment in any securities approved by the State of Georgia for local governments. Authorized investments include Certificates of Deposit, repurchase agreements, direct and agency obligations of the United States, obligations of the State of Georgia, pooled investment programs of the State of Georgia, and no-load mutual funds of direct obligations of the United States. At December 31, 2025, the City had the following investments: Investment Certificate of Deposit Certificate of Deposit Maturities August 19, 2029 June 30, 2026 44 Fair Value $ 14,419 58,000 $ 72,419 NOTES TO FINANCIAL STATEMENTS NOTE 4. PROPERTY TAXES Property taxes attached as an enforceable lien on property as of January 1, 2025. The City, when applicable, obtains the services of Henry County to bill and collect the City’s property taxes. Henry County remits taxes collected to the City on a bi-monthly basis. Property taxes were levied on August 19, 2025, billed on September 26, 2025, and payable on or before December 1, 2025. The lien date on unpaid taxes is June 1, 2026. Property taxes levied for 2025 are recorded as receivables, net of estimated uncollectible property taxes. Net receivables estimated to be collectible subsequent to March 1, 2026, are recorded as revenue when received. A local option sales tax is in force. Proceeds from the tax are remitted to the City monthly and are utilized to give property tax owners tax relief. NOTE 5. RECEIVABLES Receivables at December 31, 2025 for the City’s individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts are as follows: Governmental Funds Grants Fund General Receivables: Intergovernmental Taxes Accounts Gross receivables Less allowance for uncollectibles Net total receivables $ $ 796,413 2,551,655 314,263 3,662,331 (145,184) 3,517,147 $ $ SPLOST VI Fund 716,296 716,296 $ 716,296 $ Nonmajor Governmental Funds TSPLOST Fund 638,973 638,973 638,973 $ $ 617,846 617,846 617,846 $ $ 2,580 153,249 155,829 155,829 Total $ 1,512,709 3,811,054 467,512 5,791,275 (145,184) 5,646,091 $ Proprietary Funds Water and Sewer Receivables: Intergovernmental Accounts Gross receivables Less allowance for uncollectibles Net total receivables $ $ 45 11,768 553,482 565,250 Nonmajor Enterprise Funds Solid Waste $ 25,302 143,757 169,059 (13,321) 551,929 $ 169,059 $ $ 26,273 367,421 393,694 393,694 Total $ $ 63,343 1,064,660 1,128,003 (13,321) 1,114,682 NOTES TO FINANCIAL STATEMENTS NOTE 6. CAPITAL ASSETS Capital asset activity for the fiscal year ended December 31, 2025 is as follows: Beginning Balance Governmental activities: Capital assets, not being depreciated: Land Construction in progress Total $ Increases 11,587,728 4,719,224 16,306,952 $ Decreases Ending Balance Transfers - $ 2,780,166 2,780,166 - $ - $ 11,587,728 7,499,390 19,087,118 - (241,950) (241,950) 30,652,641 5,319,497 9,608,833 2,549,655 1,574,168 5,828,399 1,370,113 173,361 57,076,667 Capital assets, being depreciated: Buildings and improvements Improvements other than buildings Infrastructure Machinery and equipment Office equipment Vehicles Furniture and fixtures Lease office equipment Total 30,652,641 5,319,497 9,608,833 2,326,264 1,574,168 5,271,576 1,370,113 173,361 56,296,453 223,391 798,773 1,022,164 Less accumulated depreciation and amortization for: Buildings and improvements Improvements other than buildings Infrastructure Machinery and equipment Office equipment Vehicles Furniture and fixtures Lease office equipment Total (9,998,871) (2,573,360) (3,187,954) (1,655,932) (1,268,976) (2,833,162) (1,152,922) (5,684) (22,676,861) (864,349) (240,508) (214,071) (139,465) (80,723) (821,458) (33,719) (34,104) (2,428,397) - - (10,863,220) (2,813,868) (3,402,025) (1,795,397) (1,349,699) (3,654,620) (1,186,641) (39,788) (25,105,258) Total capital assets, being depreciated and amortized, net 33,619,592 (1,406,233) - (241,950) 31,971,409 (241,950) $ 51,058,527 Governmental activities capital assets $ 49,926,544 $ 1,373,933 - $ - $ The beginning capital asset balance for governmental activities has been restated as of December 31, 2024. Refer to Note 15, Restatement of Errors in Prior Year Reporting, for a detailed explanation regarding the nature of this error correction. 46 NOTES TO FINANCIAL STATEMENTS NOTE 6. CAPITAL ASSETS (CONTINUED) Beginning Balance Business-type activities: Capital assets, not being depreciated: Land Construction in progress Total $ 445,603 119,117 564,720 Increases $ 1,344,327 1,344,327 Decreases $ Ending Balance Transfers - $ - $ 445,603 1,463,444 1,909,047 Capital assets, being depreciated: Buildings and improvements Improvements other than buildings Infrastructure Vehicles Furniture and fixtures Machinery and equipment Total 42,167,894 17,523,414 1,575,109 2,402,548 635,928 5,819,084 70,123,977 212,850 34,980 247,830 - 241,950 241,950 42,380,744 17,523,414 1,575,109 2,644,498 635,928 5,854,064 70,613,757 Less accumulated depreciation for: Buildings and improvements Improvements other than buildings Infrastructure Vehicles Furniture and fixtures Machinery and equipment Total (10,323,951) (5,377,869) (311,572) (2,039,412) (487,520) (2,994,574) (21,534,898) (1,300,648) (372,280) (52,372) (148,210) (22,937) (277,660) (2,174,107) - - (11,624,599) (5,750,149) (363,944) (2,187,622) (510,457) (3,272,234) (23,709,005) Total assets, being depreciated, net 48,589,079 (1,926,277) - 241,950 46,904,752 Business-type activities capital assets, net $ 49,153,799 $ (581,950) $ - $ 241,950 $ 48,813,799 The beginning capital asset balance for business-type activities has been restated as of December 31, 2024. Refer to Note 15, Restatement of Errors in Prior Year Reporting, for a detailed explanation regarding the nature of this error correction. 47 NOTES TO FINANCIAL STATEMENTS NOTE 6. CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the City as follows: Governmental activities: General government Judicial Public safety Public works Total depreciation expense - governmental activities $ $ 735,533 90,388 843,688 758,788 2,428,397 Business-type activities: Water and sewer Solid waste Stormwater Conference center Amphitheater Total depreciation expense - business-type activities $ $ 1,284,577 14,973 133,247 108,641 632,669 2,174,107 Net investment in Capital Assets. Net investment in capital assets on the government-wide Statement of Net Position and the major proprietary funds Statement of Net Position as of December 31, 2025 are as follows: Governmental Activities: Capital assets, non-depreciable $ 19,087,118 Capital assets, depreciable 57,076,667 Accumulated depreciation (25,105,258) Lease liability (137,222) Bonds payable (17,445,000) Unspent proceeds - Public Facilities Authority 15,092,066 Net investment in capital assets, $ Governmental Activities 48 48,568,371 NOTES TO FINANCIAL STATEMENTS NOTE 6. CAPITAL ASSETS (CONTINUED) Net investment in Capital Assets (Continued). Business-type Activities: Capital assets, non-depreciable $ 1,909,047 Capital assets, depreciable 70,613,757 Accumulated depreciation (23,709,005) Retainage payable (123,380) Net investment in capital assets, Business-type Activities $ 48,690,419 Water and Sewer Fund: Capital assets, non-depreciable $ 1,880,406 Capital assets, depreciable 40,053,688 Accumulated depreciation (16,721,058) Retainage payable (123,380) Net investment in capital assets, Water and Sewer Fund $ 25,089,656 $ 468,080 Solid Waste Fund: Capital assets, depreciable Accumulated depreciation (448,208) Net investment in capital assets, Solid Waste Fund $ 19,872 $ 22,837,959 Amphitheater Fund: Capital assets, depreciable Accumulated depreciation (2,995,918) Net investment in capital assets, Amphitheater Fund $ 49 19,842,041 NOTES TO FINANCIAL STATEMENTS NOTE 7. LONG-TERM DEBT Changes in Long-term Debt. The following is a summary of changes in long-term liabilities reported in the government-wide financial statements for the year ended December 31, 2025: Beginning Balance Governmental activities: Urban Redevelopment revenue bonds Public Facilities Authority revenue bonds Accrued compensated absences Net pension liability Lease liability Total governmental-type activity long-term debt Business-type activities: GEFA notes payable Accrued compensated absences Net pension liability Total business-type activity long-term debt $ 7,160,000 Additions $ Ending Balance Reductions - $ (890,000) $ Due Within One Year 6,270,000 $ 930,000 15,225,000 - (4,050,000) 11,175,000 1,295,000 961,575 2,527,313 167,486 264,869 1,347,078 - (30,264) 1,226,444 3,874,391 137,222 245,289 32,529 $ 26,041,374 $ 1,611,947 $ (4,970,264) $ 22,683,057 $ 2,502,818 $ 823,674 $ - $ (823,674) $ - $ - 163,664 746,933 $ 1,734,271 63,352 404,863 $ 468,215 - $ (823,674) 227,016 1,151,796 $ 1,378,812 45,403 - $ 45,403 The City’s General Fund is typically used to liquidate all governmental activity long-term liabilities. However, proceeds from any asset sales relative to the Urban Redevelopment Project or Public Facilities Project will be used to liquidate the related revenue bond obligation. The Water and Sewer Enterprise Fund is used to liquidate all of the business-type activity long-term liabilities. Urban Redevelopment Revenue Bonds. The City entered into an agreement with a financial institution that provided for the issuance of revenue bonds for the purchase of land and construction of structures and improvements for the New Town Center. Various bond issues were used by the City during the purchase and construction phases. During the year ended December 31, 2025, the City repaid various bond issues in the amount of $890,000. Amounts outstanding at year-end of $6,270,000 reflect total drawdowns to date net of repayments, if any. 50 NOTES TO FINANCIAL STATEMENTS NOTE 7. LONG-TERM DEBT (CONTINUED) Urban Redevelopment Revenue Bonds (Continued). Urban Redevelopment Fund long-term liabilities outstanding at December 31, 2025 are as follows: Series 2005 B Revenue bonds payable to Capital One Bank, in the total amount of $7,330,000, interest at 4.45%, matures 2/1/31. $ 1,755,000 Series 2006 A Revenue bonds payable to Capital One Bank, in the total amount of $4,795,000, current interest at 4.58%, matures 2/1/31. 2,645,000 Series 2006 C Revenue bonds payable to Capital One Bank, in the total amount of $5,000,000, current interest at 4.865%, matures 2/1/31. 1,870,000 Total $ 6,270,000 Annual debt service requirements to maturity for the revenue bonds that have closed are as follows: Fiscal Year 2026 2027 2028 2029 2030 2031 Total Principal Interest Total $ 930,000 975,000 1,020,000 1,065,000 1,115,000 1,165,000 $ 267,625 223,719 177,731 129,673 79,423 26,859 $ 1,197,625 1,198,719 1,197,731 1,194,673 1,194,423 1,191,859 $ 6,270,000 $ 905,030 $ 7,175,030 Public Facilities Authority Revenue Bonds. The City entered into an agreement with a financial institution that provided for the issuance of revenue bonds for the purchase of land and equipment for the Amphitheater and Cultural Arts Center, the purchase of buildings for the Cultural Arts Center, and the improvement of trails. Various bond issues were used by the City during the purchase and construction phases. Amounts outstanding at year-end of $11,175,000 reflect total drawdowns to date net of repayments, if any. 51 NOTES TO FINANCIAL STATEMENTS NOTE 7. LONG-TERM DEBT (CONTINUED) Public Facilities Authority Revenue Bonds (Continued). Public Facilities Authority Fund longterm liabilities outstanding at December 31, 2025 are as follows: Series 2021 C Revenue bonds payable to Truist Bank, in the total amount of $14,865,000, current interest at 2.53%, matures 12/31/2036. $ 11,175,000 Total $ 11,175,000 Annual debt service requirements to maturity for the revenue bonds that have closed are as follows: Fiscal Year Principal Interest Total 2026 2027 2028 2029 2030 2031 – 2035 2036 $ 1,295,000 1,325,000 1,360,000 820,000 845,000 4,550,000 980,000 $ 266,346 233,203 199,238 171,661 150,598 417,577 12,397 $ 1,561,346 1,558,203 1,559,238 991,661 995,598 4,967,577 992,397 Total $ 11,175,000 $ 1,451,020 $ 12,626,020 Lease Liability. The City enters into lease agreements for periods of five years as lessee for the use of copiers. These leases have an imputed interest rate of 2%. Principal and interest requirements to maturity for the lease liability as of December 31, 2025 are as follows: Fiscal Year 2026 2027 2028 2029 Principal Interest Total $ 32,529 34,964 37,581 32,148 $ 8,870 6,435 3,818 1,041 $ 41,399 41,399 41,399 33,189 $ 137,222 $ 20,164 $ 157,386 52 NOTES TO FINANCIAL STATEMENTS NOTE 8. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Interfund receivable and payable balances as of December 31, 2025 are as follows: Receivable Fund General Fund General Fund Grants Fund Nonmajor Governmental Funds SPLOST V Fund Nonmajor Enterprise Funds Amphitheater Fund Payable Fund SPLOST V Fund Nonmajor Governmental Funds General Fund SPLOST V Fund General Fund General Fund General Fund $ $ Amount 19,185,612 278,116 615,215 519,453 2,943,169 917,011 594,659 25,053,235 The outstanding balances between funds result mainly from the time lag between the dates that: 1) interfund goods and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the accounting system, and 3) payments between funds are made. These balances normally clear within one to two months. Amounts due from the SPLOST V Fund are to reimburse the General Fund for allowable SPLOST projects. Interfund transfers are as follows: Transfers Out Transfers In General Fund $ Public Facilities Authority Nonmajor Governmental Funds General Grants SPLOST V Nonmajor Fund Fund Fund Governmental Funds - $ 6,234 4,386,740 2,928,851 $ 19,185,612 $ 2,934,764 - - - Total $ 22,126,610 4,386,740 2,928,851 Water & Sewer Fund 765,000 - - - 765,000 Amphitheater Fund 3,600,000 - - - 3,600,000 565,945 - - - 565,945 Nonmajor Enterprise Funds Total $ 12,246,536 $ 6,234 $ 19,185,612 $ 2,934,764 $ 34,373,146 Transfers are used to: 1) move revenues from the fund that the statute or budget requires to collect them to the fund that the statute or budget requires to expend them, and 2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 53 NOTES TO FINANCIAL STATEMENTS NOTE 9. JOINT VENTURE Under Georgia law, the City, in conjunction with other cities and counties in the ten-county Atlanta area, is a member of the Atlanta Regional Commission (“ARC”) and is required to pay annual dues thereto. Membership in the ARC is required by the O.C.G.A. §50-8-34 which provides for the organizational structure of the ARC in Georgia. The ARC Board membership includes the chief elected official of each county and municipality of the area. O.C.G.A. §50-8-39.1 provides that the member governments are liable for any debts or obligations of a regional commission. Henry County makes contributions on behalf of the City to the ARC. Separate financial statements may be obtained from: Atlanta Regional Commission 40 Courtland Street, NE Atlanta, Georgia 30303 NOTE 10. DEFINED BENEFIT PENSION PLAN A. Plan Description The City’s pension plan is administered through the Georgia Municipal Employee Benefit System (“GMEBS”), an agent multiple-employer pension plan administered by the Georgia Municipal Association. The Plan (the “Plan”) provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. Benefits are provided by the Plan whereby retirees receive between 1% and 1.75% multiplied by the average of the five highest years of regular earnings multiplied by the total credited years of service. The City Council, in its role as the Plan sponsor, has the governing authority to establish and amend from time to time, the benefits provided and the contribution rates of the City and its employees. The Georgia Municipal Association issues a publicly available financial report that includes financial statements and Required Supplementary Information for GMEBS. That report may be obtained at www.gmanet.com or by writing to Georgia Municipal Association, Risk Management and Employee Benefit Services, 201 Pryor Street, NW, Atlanta, Georgia 30303 or by calling (404) 688-0472. B. Plan Membership As of July 1, 2025, the date of the most recent actuarial valuation, there were 288 participants consisting of the following: Inactive plan members or beneficiaries currently receiving benefits 48 Inactive plan members entitled to but not receiving benefits 53 Active plan members 187 Total Plan Members 288 54 NOTES TO FINANCIAL STATEMENTS NOTE 10. DEFINED BENEFIT PENSION PLAN (CONTINUED) C. Contributions The Plan is subject to minimum funding standards of the Georgia Public Retirement Systems Standards law. The Board of Trustees of GMEBS has adopted a recommended actuarial funding policy for the Plan which meets state minimum requirements and will accumulate sufficient funds to provide the benefits under the Plan. The funding policy for the Plan, as adopted by the City Council, is to contribute an amount equal to or greater than the actuarially recommended contribution rate. This rate is based on the estimated amount necessary to finance the costs of benefits earned by plan members during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of plan members, as determined by the City Council. For the year ended December 31, 2025, the City's contribution rate was 10.3% of annual payroll. City contributions to the Plan were $1,131,874 for the year ended December 31, 2025. D. Net Pension Liability of the City The City’s net pension liability was measured as of March 31, 2025. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2024 with updated procedures performed by the actuary to roll forward to the total pension liability measured as of March 31, 2025. Actuarial Assumptions. The total pension liability in the July 1, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return 2.25% 2.25% – plus service based merit increases 7.375% Mortality rates were based on the sex-distinct Pri-2012 head-count weighted Healthy Retiree Mortality Table with rates multiplied by 1.25. The actuarial assumptions used in the July 1, 2025 valuation were based on the results of an actuarial experience study for the period January 1, 2015 – June 30, 2019. 55 NOTES TO FINANCIAL STATEMENTS NOTE 10. DEFINED BENEFIT PENSION PLAN (CONTINUED) D. Net Pension Liability of the City (Continued) Actuarial Assumptions (Continued). The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of March 31, 2025 are summarized in the following table: Long-term expected real Asset Class Target Allocation rate of return* Domestic equity 45% 6.60% International equity 20% 7.03% Domestic fixed income 20% 2.70% Real estate 10% 3.40% Global fixed income 5% 3.70% Total 100% * Rates shown are net of the 2.25% assumed rate of inflation. E. Discount Rate The discount rate used to measure the total pension liability was 7.375%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all of the projected benefit payments to determine the total pension liability. 56 NOTES TO FINANCIAL STATEMENTS NOTE 10. DEFINED BENEFIT PENSION PLAN (CONTINUED) F. Changes in the Net Pension Liability of the City The changes in the components of the net pension liability of the City for the year ended December 31, 2025 were as follows: Balances at December 31, 2024 Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) $ 16,661,372 $ 13,387,126 $ 3,274,246 Changes for the year: Service cost Interest 899,854 - 899,854 1,266,620 - 1,266,620 Differences between expected and 853,626 - 853,626 Contributions - employer actual experience - 779,000 (779,000) Net investment income - 696,890 (696,890) (773,444) (773,444) - - (28,285) 28,285 179,446 - 179,446 Benefit payments, including refunds of employee contributions Administrative expense Other 2,426,102 Net changes Balances at December 31, 2025 $ 19,087,474 674,161 $ 14,061,287 1,751,941 $ 5,026,187 The required Schedule of Changes in the City’s Net Pension Liability and Related Ratios immediately following the notes to the financial statements presents multi-year trend information about whether the value of plan assets is increasing or decreasing over time relative to the total pension liability. G. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City, calculated using the discount rate of 7.375%, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.375%) or 1-percentage-point higher (8.375%) than the current rate: Current City's net pension liability $ 57 1% Decrease Discount Rate 1% Increase (6.375%) (7.375%) (8.375%) 7,599,913 $ 5,026,187 $ 2,890,498 NOTES TO FINANCIAL STATEMENTS NOTE 10. DEFINED BENEFIT PENSION PLAN (CONTINUED) G. Sensitivity of the Net Pension Liability to Changes in the Discount Rate (Continued) Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. Actuarial calculations reflect a long-term perspective. Calculations are based on the substantive plan in effect as of March 31, 2025, and the current sharing pattern of costs between employer and employee. H. Pension Expense and Deferred Outflows of Resources For the year ended December 31, 2025, the City recognized pension expense of $1,604,513. At December 31, 2025, the City reported deferred outflows of resources related to pensions from the following sources: Deferred Outflows of Resources Differences between expected and actual experience $ 1,308,221 Net difference between projected and actual earnings on pension plan investments 305,946 City contributions subsequent to the measurement date 1,131,874 Total $ 2,746,041 City contributions subsequent to the measurement date of $1,131,874 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ending December 31, 2026. Other amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as follows: Year ending December 31, 2026 $ 658,336 2027 628,625 2028 98,567 2029 228,639 Total $ 1,614,167 58 NOTES TO FINANCIAL STATEMENTS NOTE 11. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees, and natural disasters. The City carries commercial insurance in amounts deemed prudent by City management. Commercial insurance is carried for coverage of property, errors and omissions, professional liability and injuries to employees. There have been no significant reductions of insurance coverage from coverage in the prior year and settlement amounts have not exceeded insurance coverage for the current year or the three prior years. NOTE 12. COMMITMENTS AND CONTINGENCIES Amounts received or receivable from grant agencies are subject to audit and adjustments by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount of any expenditures that may be disallowed by the grantor cannot be determined at this time, although the government expects such amounts, if any, to be immaterial. In 2014, the citizens of Henry County voted to approve a Special Purpose Local Option Sales Tax (“SPLOST”) to help finance the acquisition and construction of major capital equipment and facilities. In relation to this, the City entered into an intergovernmental agreement with Henry County and the other cities inside the County whereby Henry County would issue revenue bonds to finance some of the SPLOST projects in advance of the SPLOST collections. The City received $6,000,000 from Henry County under this agreement in fiscal year 2015. The revenue bonds are in the name of Henry County and are not a direct liability of the City. However, under the terms of the intergovernmental agreement, Henry County will retain all of the first SPLOST revenue collections for each year in amounts that will satisfy the annual debt service requirements. The agreement also requires the City to pay its share of debt service requirements should the SPLOST revenue collections not be sufficient to satisfy the debt service requirements under the bond issue. Management believes the SPLOST revenue collections will be sufficient to satisfy all debt service requirements under the bond ordinance. NOTE 13. HOTEL/MOTEL TAX The City levies an 8% hotel/motel tax in accordance with the provisions of O.C.G.A. §48-13-51. In order to comply with the expenditure requirements of this code section, the City remits 40% of the monies from the first 5% collected under this provision to the Henry County Chamber of Commerce. The Henry County Chamber of Commerce also receives 50% of the additional 3%. Total collections for the year ended December 31, 2025, were $1,166,109. The amount remitted to the Henry County Chamber of Commerce totaled $507,275. 59 NOTES TO FINANCIAL STATEMENTS NOTE 14. LEASE AGREEMENTS The City leases its solid waste transfer station to Lamar County Regional Solid Waste Management Authority who subleases to Waste Management. The current lease extends until April 30, 2026. The monthly rental charged by the City is $1.40 for each ton of waste received at the site through April 30, 2021, at which time the monthly rental will be adjusted by the Consumer Price Index (“CPI”) annually through the termination of the agreement. For the year ended December 31, 2025, the City received $97,677 in rental fees under the contract. The leased assets cost $36,116 and are reported net of accumulated depreciation of $36,116 for a net carrying value of $0. The City’s lease agreements, other than the agreement described above, are relatively minor commitments whereby the City is leasing various pieces of office equipment. NOTE 15. RESTATEMENT OF ERRORS IN PRIOR YEAR REPORTING The City has determined a restatement to beginning net position and fund balance of various funds is required as of January 1, 2025. During our audit procedures, management identified the following errors in the recording of due from other governments, capital assets, assets held for sale, unearned revenue, and taxes receivable. Management was able to provide corrected listings, which reflected material adjustments to the beginning balances of these accounts as follows: Net position, as previously reported Water and Nonmajor Governmental Business-type General Grants TSPLOST Sewer Enterprise Activities Activities Fund Fund Fund Fund Funds $ 87,454,929 $ 52,996,126 Fund balance, as previously reported $ 1,920,655 $ 472,346 $ 15,613,622 $ 25,695,918 $ 5,905,750 Adjustment to due from other governments 1,528,080 - 1,528,080 - - - - Adjustment to capital assets (1,146,123) 554,761 - - - 393,948 160,813 Adjustment to assets held for resale (522,512) - (522,512) - - - - Adjustment to unearned revenue 200,000 - - 200,000 - - - Adjustment to taxes receivable 590,212 - - - 590,212 - - Net position, as restated $ 88,104,586 $ 53,550,887 Fund balance, as restated $ 60 2,926,223 $ 672,346 $ 16,203,834 $ 26,089,866 $ 6,066,563 REQUIRED SUPPLEMENTARY INFORMATION CITY OF STOCKBRIDGE, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Total pension liability Service cost Interest on total pension liability Differences between expected and actual experience $ 2024 899,854 1,266,620 $ 2023 878,381 1,138,822 $ 2022 459,717 981,875 $ 395,098 874,286 853,626 424,513 926,528 713,153 (773,444) 179,446 2,426,102 16,661,372 19,087,474 (687,229) 1,754,487 14,906,885 16,661,372 (630,164) 1,737,956 13,168,929 14,906,885 (546,464) 1,436,073 11,732,856 13,168,929 779,000 696,890 761,562 1,918,646 591,026 (819,343) 562,067 706,176 Administrative expenses (773,444) (28,285) (687,229) (19,363) (630,164) (21,654) (546,464) (19,801) Net change in Plan fiduciary net position 674,161 1,973,616 (880,135) 701,978 Plan fiduciary net position beginning 13,387,126 11,413,510 12,293,645 11,591,667 Plan fiduciary net position ending (b) 14,061,287 13,387,126 11,413,510 12,293,645 Benefit payments, including refunds of employee contributions Other Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Net investment income Benefit payments, including refunds of employee contributions City's net pension liability (a) - (b) $ Plan fiduciary net position as a percentage of the total pension liability Covered payroll City's net pension liability as a percentage of covered payroll 5,026,187 $ 73.7% $ 12,104,944 41.52% 61 3,274,246 $ 80.3% $ 9,699,839 33.76% 3,493,375 $ 76.6% $ 8,889,756 39.30% 875,284 93.4% $ 4,612,475 18.98% 2021 $ $ 2020 395,087 828,056 $ 333,901 770,863 $ 2018 329,372 750,914 $ 2017 322,052 685,378 $ 2016 297,396 650,509 $ 247,214 611,199 (60,831) 382,053 (312,679) 180,527 (11,712) 132,894 (524,505) 637,807 11,095,049 11,732,856 (510,620) (80,734) 895,463 10,199,586 11,095,049 (501,679) 265,928 9,933,658 10,199,586 (487,128) 145,682 846,511 9,087,147 9,933,658 (485,418) 450,775 8,636,372 9,087,147 (482,759) 508,548 8,127,824 8,636,372 479,659 3,628,109 454,251 (609,481) 411,823 306,333 373,239 951,855 334,499 870,208 401,339 20,122 (524,505) (18,658) (510,620) (20,941) (501,679) (19,245) (487,128) (18,215) (485,418) (18,512) (482,759) (13,276) 3,564,605 (686,791) 197,232 819,751 700,777 (74,574) 8,027,062 8,713,853 8,516,621 7,696,870 6,996,093 7,070,667 11,591,667 8,027,062 8,713,853 8,516,621 7,696,870 6,996,093 141,189 $ 98.8% $ 2019 3,993,352 3.54% 3,067,987 $ 72.3% $ 3,819,839 80.32% 1,485,733 $ 85.4% $ 2,956,753 1,417,037 $ 85.7% $ 50.25% 2,982,269 47.52% 62 1,390,277 $ 84.7% $ 2,839,086 48.97% 1,640,279 81.0% $ 2,777,571 59.05% CITY OF STOCKBRIDGE, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CITY CONTRIBUTIONS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Actuarially determined contribution $ Contributions in relation to the actuarially determined contribution 2024 1,131,874 $ 1,131,874 2023 1,035,667 $ 1,035,667 2022 670,194 $ 670,194 564,637 564,637 Contribution deficiency (excess) $ - $ - $ - $ - Covered payroll $ 11,029,381 $ 9,392,961 $ 10,122,678 $ 8,047,255 Contributions as a percentage of covered payroll Notes to the Schedule: Valuation date Cost method Actuarial asset valuation method Assumed rate of return on investments Projected salary increases Cost of living adjustments Amortization method Remaining amortization period 10.3% 11.0% 6.6% 7.0% July 1, 2025 Projected Unit Credit Sum of actuarial value at beginning of year and the cash flow during the year plus the assumed investment return, adjusted by 10% of the amounts that the value exceeds or is less than the market value at the end of the year. The actuarial value is adjusted, if necessary, to be within 20% of market value. 7.375% 2.25% plus service based merit increases N/A Closed level dollar for remaining unfunded liability Remaining amortization period varies for the bases, with a net effective amortization period of 13 years. 63 2021 $ 2020 561,211 $ 561,211 2019 452,475 $ 452,475 2018 454,363 $ 2017 397,643 454,363 $ 397,643 2016 365,104 $ 365,104 324,417 324,417 $ - $ - $ - $ - $ - $ - $ 4,531,408 $ 3,544,664 $ 4,009,122 $ 3,401,666 $ 3,251,123 $ 3,141,666 12.4% 12.8% 11.3% 11.7% 64 11.2% 10.3% COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Hotel/Motel Tax Fund – This fund is used to account for hotel/motel taxes collected. Confiscated Assets Fund – This fund is used to account for cash received either as a result of cash confiscation or cash received from a sale of capital assets acquired from a drug raid. Redspeed Fund – This fund is used to account for revenues derived from traffic camera enforcement activities. Tax Allocation District Fund – This fund is used to account for taxes collected by Henry County and remitted to the City. PERMANENT FUND Burke Cemetery Fund – This fund is used to account for revenues earned from a trust set up for cemetery improvements at Burke Cemetery. CAPITAL PROJECTS FUNDS State and Federal Grants Fund – This fund is used to account for the acquisition and construction of major capital facilities which are financed with state and federal assistance. Special Purpose Local Option Sales Tax (“SPLOST”) III Fund – This fund is used to account for capital expenditures. Funding is provided by special purpose sales taxes, which are collected by the County and remitted to the City through an intergovernmental agreement. Downtown Development Authority Fund – This fund is used to account for the activities of the City’s blended component unit, the Downtown Development Authority. Special Purpose Local Option Sales Tax (“SPLOST”) IV Fund – This fund is used to account for capital expenditures. Funding is provided by special purpose sales taxes, which are collected by Henry County and remitted to the City through an intergovernmental agreement. Urban Redevelopment Fund – This fund is used to account for the proceeds from the issuance of bonds to finance the acquisition and construction of major capital facilities. City-wide Development Fund – This fund is used to account for the activities of the City’s blended component unit, the City-wide Development Authority. Impact Fee Fund – This fund is used to account for the proceeds from new development taxes used for capital projects. CITY OF STOCKBRIDGE, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CITY CONTRIBUTIONS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Actuarially determined contribution $ Contributions in relation to the actuarially determined contribution 2024 1,131,874 $ 1,131,874 2023 1,035,667 $ 1,035,667 2022 670,194 $ 670,194 564,637 564,637 Contribution deficiency (excess) $ - $ - $ - $ - Covered payroll $ 11,029,381 $ 9,392,961 $ 10,122,678 $ 8,047,255 Contributions as a percentage of covered payroll Notes to the Schedule: Valuation date Cost method Actuarial asset valuation method Assumed rate of return on investments Projected salary increases Cost of living adjustments Amortization method Remaining amortization period 10.3% 11.0% 6.6% 7.0% July 1, 2025 Projected Unit Credit Sum of actuarial value at beginning of year and the cash flow during the year plus the assumed investment return, adjusted by 10% of the amounts that the value exceeds or is less than the market value at the end of the year. The actuarial value is adjusted, if necessary, to be within 20% of market value. 7.375% 2.25% plus service based merit increases N/A Closed level dollar for remaining unfunded liability Remaining amortization period varies for the bases, with a net effective amortization period of 13 years. 63 2021 $ 2020 561,211 $ 561,211 2019 452,475 $ 452,475 2018 454,363 $ 2017 397,643 454,363 $ 397,643 2016 365,104 $ 365,104 324,417 324,417 $ - $ - $ - $ - $ - $ - $ 4,531,408 $ 3,544,664 $ 4,009,122 $ 3,401,666 $ 3,251,123 $ 3,141,666 12.4% 12.8% 11.3% 11.7% 64 11.2% 10.3% CITY OF STOCKBRIDGE, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2025 Special Revenue Fund Confiscated Redspeed Asset Fund Fund Hotel/Motel Tax Fund Tax Allocation District Fund Permanent Fund Burke Cemetery Fund Capital Projects Funds State and Federal SPLOST III Grants Fund Fund ASSETS Cash and cash equivalents Investments Taxes receivable Accounts receivable Due from other funds $ 735,944 76,688 - $ 126,308 - $ 1,642,370 74,061 - $ 121,083 2,580 - $ 27 14,419 - $ 353,351 - $ 579 519,453 Total assets $ 812,632 $ 126,308 $ 1,716,431 $ 123,663 $ 14,446 $ 353,351 $ 520,032 $ 71,551 71,551 $ - $ - $ - $ - $ - $ - LIABILITIES AND FUND BALANCES (DEFICIT) Liabilities Accounts payable Due to other funds Total liabilities Fund Balances (Deficit) Non-spendable: Permanent fund corpus Restricted: Cemetery maintenance Capital projects Public safety Tourism Assigned for capital projects Unassigned Total fund balances (deficit) Total liabilities and fund balances (deficit) $ - - - - 5,000 - - 741,081 741,081 126,308 126,308 1,716,431 1,716,431 123,663 123,663 9,446 14,446 353,351 520,032 520,032 812,632 $ 126,308 $ 1,716,431 65 $ 123,663 $ 14,446 353,351 $ 353,351 $ 520,032 Downtown Development Fund Capital Projects Funds Urban Redevelopment Fund SPLOST IV Fund City-wide Development Fund Total Nonmajor Governmental Funds Impact Fee Fund $ 204,218 2,500 - $ - $ 33,256 - $ 285,139 - $ 2,398,547 - $ 5,900,822 14,419 2,580 153,249 519,453 $ 206,718 $ - $ 33,256 $ 285,139 $ 2,398,547 $ 6,590,523 $ 157 214,646 214,803 $ - $ - $ 24 63,470 63,494 $ - $ 71,732 278,116 349,848 $ - - - - - 5,000 (8,085) (8,085) - 33,256 33,256 221,645 221,645 2,398,547 2,398,547 9,446 3,297,143 1,842,739 741,081 353,351 (8,085) 6,240,675 206,718 $ - $ 33,256 $ 285,139 66 $ 2,398,547 $ 6,590,523 CITY OF STOCKBRIDGE, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Special Revenue Fund Confiscated Redspeed Asset Fund Fund Hotel/Motel Tax Fund Revenues Property taxes Other taxes Impact fees Interest income Other revenues Total revenues $ Expenditures Current: Public works Housing and development Capital outlay: General government Public safety Debt service: Principal Interest Total expenditures 1,166,109 1,166,109 $ - $ 839,901 839,901 Tax Allocation District Fund Permanent Fund Burke Cemetery Fund Capital Projects Funds State and Federal SPLOST III Grants Fund Fund $ $ $ 123,663 123,663 2,135 400 2,535 - $ - 526,455 - - - 911 - - - - - 762,759 - - - 226 - 526,455 - 762,759 - 911 - 226 Excess (deficiency) of revenues over (under) expenditures 639,654 - 77,142 123,663 1,624 - (226) Other financing sources (uses) Transfers in Transfers out Total other financing sources (uses) (2,080,684) (2,080,684) - 1,639,289 1,639,289 - - - (618,000) (618,000) Net change in fund balances (1,441,030) - 1,716,431 123,663 1,624 - (618,226) Fund balances, beginning of year 2,182,111 126,308 - - 12,822 353,351 1,138,258 Fund balances (deficit), end of year $ 741,081 $ 126,308 $ 1,716,431 67 $ 123,663 $ 14,446 $ 353,351 $ 520,032 Downtown Development Fund $ $ - Capital Projects Funds Urban Redevelopment Fund SPLOST IV Fund $ - $ - City-wide Development Fund $ Total Nonmajor Governmental Funds Impact Fee Fund 8,500 8,500 $ 1,066,164 1,066,164 $ 123,663 1,166,109 1,066,164 2,135 848,801 3,206,872 85,877 - - - - 911 612,332 - 268 - - 62,988 - - 63,482 762,759 85,877 268 890,000 309,562 1,199,562 62,988 - 890,000 309,562 2,639,046 (85,877) (268) (1,199,562) (54,488) 1,066,164 567,826 45,000 45,000 (236,080) (236,080) 1,199,562 1,199,562 45,000 45,000 - 2,928,851 (2,934,764) (5,913) (40,877) (236,348) - (9,488) 1,066,164 561,913 32,792 236,348 33,256 231,133 1,332,383 5,678,762 (8,085) $ - $ 33,256 $ 221,645 68 $ 2,398,547 $ 6,240,675 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SPECIAL REVENUE FUND - HOTEL/MOTEL TAX FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Hotel/Motel Tax Fund Final Budget Revenues Taxes Total revenues $ Variance With Final Budget Actual 2,607,139 2,607,139 $ 1,166,109 1,166,109 $ (1,441,030) (1,441,030) Expenditures Current: Housing and development Total expenditures 526,455 526,455 526,455 526,455 - Excess of revenues over expenditures 2,080,684 639,654 (1,441,030) Other financing uses: Transfers out Total other financing uses (2,080,684) (2,080,684) (2,080,684) (2,080,684) - - (1,441,030) (1,441,030) 2,182,111 2,182,111 - Net change in fund balances Fund balances, beginning of year Fund balances, end of year $ 69 2,182,111 $ 741,081 $ (1,441,030) CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SPECIAL REVENUE FUND - REDSPEED FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Redspeed Fund Final Budget Revenues: Other revenues Total revenues $ Expenditures: Capital outlay: Public safety Total expenditures Variance With Final Budget Actual 1,365,530 1,365,530 $ 839,901 839,901 $ (525,629) (525,629) 1,365,530 1,365,530 762,759 762,759 602,771 602,771 Excess of revenues over expenditures - 77,142 77,142 Other financing sources: Transfers in Total other financing sources - 1,639,289 1,639,289 1,639,289 1,639,289 Net change in fund balances - 1,716,431 1,716,431 Fund balances, beginning of year - - - Fund balances, end of year $ 70 - $ 1,716,431 $ 1,716,431 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PERMANENT FUND - BURKE CEMETERY FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Burke Cemetery Fund Final Budget Revenues: Interest income Miscellaneous revenues Total revenues $ Expenditures: Current: Public works Total expenditures Net change in fund balances Fund balances, beginning of year Fund balances, end of year $ 71 Variance With Final Budget Actual 10,000 10,000 $ 2,135 400 2,535 $ (7,865) 400 (7,465) 10,000 10,000 911 911 9,089 9,089 - 1,624 1,624 12,822 12,822 - 12,822 $ 14,446 $ 1,624 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL PROJECTS FUND - DOWNTOWN DEVELOPMENT FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Downtown Development Fund Final Budget Revenues: Other revenues Total revenues $ Expenditures: Current: Housing and development Total expenditures Variance With Final Budget Actual 45,000 45,000 $ - $ (45,000) (45,000) 45,000 45,000 85,877 85,877 (40,877) (40,877) Deficiency of revenues under expenditures - (85,877) (85,877) Other financing sources: Transfers in Total other financing sources - 45,000 45,000 45,000 45,000 Net change in fund balances - (40,877) (40,877) 32,792 32,792 - Fund balances, beginning of year Fund balances (deficit), end of year $ 72 32,792 $ (8,085) $ (40,877) CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL PROJECTS FUND - URBAN REDEVELOPMENT FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Urban Redevelopment Fund Final Budget Revenues: Other revenues Total revenues $ Expenditures: Debt service: Principal Interest Total expenditures Variance With Final Budget Actual - $ - $ - 2,110,066 165,033 2,275,099 890,000 309,562 1,199,562 1,220,066 (144,529) 1,075,537 Deficiency of revenues under expenditures (2,275,099) (1,199,562) 1,075,537 Other financing sources: Transfers in Total other financing sources 2,275,099 2,275,099 1,199,562 1,199,562 (1,075,537) (1,075,537) - - - 33,256 33,256 - Net change in fund balances Fund balances, beginning of year Fund balances, end of year $ 73 33,256 $ 33,256 $ - CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL PROJECTS FUND - CITY-WIDE DEVELOPMENT FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 City-wide Development Fund Final Budget Revenues: Miscellaneous revenues Total revenues $ Expenditures: Capital outlay: General government Total expenditures Variance With Final Budget Actual 45,000 45,000 $ 8,500 8,500 $ (36,500) (36,500) 45,000 45,000 62,988 62,988 (17,988) (17,988) Deficiency of revenues under expenditures - (54,488) (54,488) Other financing sources: Transfers in Total other financing sources - 45,000 45,000 45,000 45,000 Net change in fund balances - (9,488) (9,488) 231,133 231,133 - Fund balances, beginning of year Fund balances, end of year $ 74 231,133 $ 221,645 $ (9,488) CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL PROJECTS FUND - IMPACT FEE FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Impact Fee Fund Final Budget Revenues: Impact fees Total revenues $ 1,066,164 1,066,164 Variance With Final Budget Actual $ 1,066,164 1,066,164 $ - Net change in fund balances 1,066,164 1,066,164 - Fund balances, beginning of year 1,332,383 1,332,383 - Fund balances, end of year $ 75 2,398,547 $ 2,398,547 $ - NONMAJOR ENTERPRISE FUNDS The Stormwater Fund – This fund is used to account for revenues generated from the charges for stormwater services provided to the citizens of the City. Conference Center Fund – This fund is used to account for activities related to the Merle Manders Conference Center. CITY OF STOCKBRIDGE, GEORGIA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS DECEMBER 31, 2025 Conference Center Fund Stormwater Fund Total ASSETS CURRENT ASSETS Cash and cash equivalents Accounts receivable Due from other governments Due from other funds Prepaid expenses $ Total current assets 1,754,995 367,421 26,273 917,011 - $ 2,240 $ 1,754,995 367,421 26,273 917,011 2,240 3,065,700 2,240 3,067,940 1,488,080 2,250,770 3,738,850 Total non-current assets 1,488,080 2,250,770 3,738,850 Total assets 4,553,780 2,253,010 6,806,790 164,733 126,717 291,450 164,733 126,717 291,450 9,425 12,520 9,962 9,613 11,279 36,220 16,100 19,038 23,799 36,220 26,062 Total current liabilities 31,907 73,212 105,119 NON-CURRENT LIABILITIES than one year Net pension liability 39,846 301,518 64,400 231,936 104,246 533,454 Total non-current liabilities 341,364 296,336 637,700 Total liabilities 373,271 369,548 742,819 1,488,080 2,857,162 2,250,770 (240,591) 3,738,850 2,616,571 NON-CURRENT ASSETS Capital assets, net of accumulated depreciation DEFERRED OUTFLOWS OF RESOURCES Pensions Total deferred outflows of resources LIABILITIES CURRENT LIABILITIES Accounts payable Accrued liabilities Customer deposits Compensated absences due within one year NET POSITION Investment in capital assets Unrestricted (deficit) Total net position $ 76 4,345,242 $ 2,010,179 $ 6,355,421 CITY OF STOCKBRIDGE, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Conference Center Fund Stormwater Fund OPERATING REVENUES Charges for services: Rentals Stormwater fees Total operating revenues $ 1,421,306 1,421,306 $ 161,877 161,877 Total $ 161,877 1,421,306 1,583,183 OPERATING EXPENSES Personnel services Contracted services Supplies Repairs and maintenance Depreciation Total operating expenses 612,746 87,729 34,671 124,925 133,247 993,318 672,040 30,803 95,274 8,584 108,641 915,342 1,284,786 118,532 129,945 133,509 241,888 1,908,660 Operating income (loss) 427,988 (753,465) (325,477) CAPITAL CONTRIBUTIONS 48,390 - 48,390 476,378 (187,520) 288,858 3,868,864 2,036,886 5,905,750 - 160,813 160,813 3,868,864 2,197,699 6,066,563 Change in net position NET POSITION, beginning of year, as previously reported Restatement - error correction NET POSITION, beginning of year, as restated NET POSITION, end of year $ 77 4,345,242 $ 2,010,179 $ 6,355,421 CITY OF STOCKBRIDGE, GEORGIA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Conference CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and service providers Payments to employees $ Stormwater Center Fund Fund 1,373,735 (1,159,917) (570,431) $ Total 168,264 (131,293) (609,620) $ 1,541,999 (1,291,210) (1,180,051) Net cash used in operating activities (356,613) (572,649) (929,262) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of property and equipment (34,980) - (34,980) (34,980) - (34,980) (391,593) (6,704) (398,297) 2,146,588 6,704 2,153,292 Net cash used in capital and related financing activities Change in cash and cash equivalents Cash and cash equivalents: Beginning of year End of year $ 1,754,995 $ - $ 1,754,995 $ 427,988 $ (753,465) $ (325,477) Reconciliation of operating income (loss) to net cash used in operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash used in operating activities: Depreciation Increase in accounts receivable Increase in due from other governments Decrease in prepaid expenses Increase in due from other funds Increase in deferred outflows of resources - pension Increase in customer deposits Increase (decrease) in accrued liabilities and compensated absences Increase in accounts payable Decrease in deferred inflows of resources - pension Increase in net pension liability 133,247 (29,474) (18,097) (917,011) 108,641 459 - 241,888 (29,474) (18,097) 459 (917,011) (54,220) 13,606 4,419 (23,056) 105,985 (41,707) 6,387 40,335 2,909 (17,735) 81,527 (95,927) 6,387 53,941 7,328 (40,791) 187,512 Net cash used in operating activities $ (356,613) $ (572,649) $ (929,262) NON-CASH CAPITAL AND RELATED FINANCING ACTIVITIES Contributions of capital assets from other funds $ 48,390 $ - $ 48,390 78 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF EXPENDITURES OF SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS - SPLOST III FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Original Estimated Cost Project Roads, bridges, sidewalks and transportation facilities $ Current Estimated Cost 3,060,000 $ 1,742,941 Beginning of Year Expenditures Current Year $ $ 1,742,941 - To Date $ Estimated Percent Complete 1,742,941 100.00% Public safety facilities and equipment 2,000,000 2,551,386 2,551,386 - 2,551,386 100.00% Public works facilities and equipment 17,097,500 7,782,674 6,541,861 618,000 7,159,861 92.00% Construction and renovation of municipal buildings 10,700,000 6,370,531 6,358,696 - 6,358,696 99.81% 32,857,500 $ 18,447,532 $ 17,194,884 $ 618,000 17,812,884 96.56% Expenditures above Non-SPLOST III expenditures Total expenditures, SPLOST III Fund $ 618,000 226 618,226 Total $ 79 $ $ CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF EXPENDITURES OF SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS - SPLOST IV FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Original Estimated Cost Project Roads, bridges, sidewalks and transportation facilities $ 1,500,000 Current Estimated Cost $ 6,720,810 Beginning of Year Expenditures Current Year $ $ 6,720,810 - To Date $ Estimated Percent Complete 6,720,810 100.00% Public safety facilities and equipment 4,180,000 367,900 131,817 236,080 367,897 100.00% Public works facilities and equipment 19,000,000 8,095,941 8,095,941 - 8,095,941 100.00% Parks and recreation 2,000,000 8,387,991 8,387,991 - 8,387,991 100.00% 26,680,000 $ 23,572,642 $ 23,336,559 $ 236,080 23,572,639 100.00% Expenditures above Non-SPLOST IV expenditures Total expenditures, SPLOST IV Fund $ 236,080 268 236,348 Total $ 80 $ $ CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF EXPENDITURES OF SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS - SPLOST V FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Original Estimated Cost Project Roads, bridges, sidewalks and transportation facilities $ 4,720,959 Current Estimated Cost $ 4,872,276 Beginning of Year Expenditures Current Year $ $ 4,872,276 - To Date $ Estimated Percent Complete 4,872,276 100.00% Civic projects 9,852,437 13,352,000 281,695 13,069,401 13,351,096 99.99% Parks and recreation 1,231,554 2,045,000 391,901 1,649,214 2,041,115 99.81% Sewer/Water/Stormwater infrastructure 4,720,959 7,450,000 1,181,417 6,262,420 7,443,837 99.92% 20,525,909 $ 27,719,276 6,727,289 $ 20,981,035 27,708,324 99.96% Total $ 81 $ $ CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF EXPENDITURES OF SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS - SPLOST VI FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Original Estimated Cost Project Road resurfacing and sidewalks Beginning of Year Expenditures Current Year $ $ 13,000,000 $ 13,000,000 Municipal building projects 22,514,673 22,514,673 - Infrastructure projects 13,700,000 13,700,000 Parks improvements 6,124,417 Vehicles and equipment Total $ Current Estimated Cost $ - 0.00% 611,763 611,763 2.72% - - - 0.00% 6,124,417 - - - 0.00% 2,500,000 2,500,000 - 798,774 798,774 31.95% 57,839,090 $ 57,839,090 1,410,537 2.44% 82 $ - - $ - Estimated Percent Complete To Date 1,410,537 $ $ CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF EXPENDITURES OF TRANSPORTATION SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Original Estimated Cost Project Roads, bridges, sidewalks and transportation facilities $ Parks and recreation Total $ Current Estimated Cost 12,200,000 $ 12,200,000 10,105,000 10,105,000 22,305,000 $ 22,305,000 83 Beginning of Year Expenditures Current Year $ $ 2,382,325 133,297 $ 2,515,622 2,012,063 To Date $ 29,854 $ 2,041,917 $ Estimated Percent Complete 4,394,388 36.02% 163,151 1.61% 4,557,539 20.43% STATISTICAL SECTION STATISTICAL SECTION This part of the City of Stockbridge, Georgia’s (the “City”) Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and Required Supplementary Information says about the City’s overall financial health. Page Financial Trends ............................................................................................................................................... 84 – 95 These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity ........................................................................................................................................... 96 – 100 These schedules contain information to help the reader assess the City’s most significant local revenue source, sales taxes. Debt Capacity ................................................................................................................................................ 101 – 105 These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Information................................................................................................... 106 – 108 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information .................................................................................................................................. 109 – 114 These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the relevant year. CITY OF STOCKBRIDGE, GEORGIA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2016 Governmental Activities: Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business-Type Activities: Net investment in capital assets Unrestricted Total business-type activities net position Primary Government: Net investment in capital assets Restricted Unrestricted Total primary government net position $ $ $ $ $ $ 24,706,392 16,757,135 14,920,345 56,383,872 Fiscal Year 2018 2017 $ $ 16,337,920 7,495,232 23,833,152 $ 41,044,312 16,757,135 22,415,577 80,217,024 $ $ $ 84 25,476,622 15,313,394 17,534,743 58,324,759 $ $ 18,655,646 7,231,099 25,886,745 $ 44,132,268 15,313,394 24,765,842 84,211,504 $ $ $ 2019 26,862,664 16,603,867 17,496,942 60,963,473 $ 18,698,180 7,462,589 26,160,769 $ 45,560,844 16,603,867 24,959,531 87,124,242 $ $ $ $ 28,435,249 16,772,774 18,313,148 63,521,171 2020 $ $ 22,251,421 6,117,244 28,368,665 $ 50,686,670 16,772,774 24,430,392 91,889,836 $ $ $ 43,717,019 9,284,117 13,597,025 66,598,161 23,368,409 5,522,733 28,891,142 67,085,428 9,284,117 19,119,758 95,489,303 2021 $ $ $ 48,261,529 11,599,061 15,443,768 75,304,358 $ $ 21,459,083 5,252,432 26,711,515 $ 69,720,612 11,599,061 20,696,200 $ 102,015,873 $ $ $ Fiscal Year 2023 2022 $ $ 33,292,952 25,321,397 4,602,348 63,216,697 $ $ 46,971,570 5,299,457 52,271,027 $ 80,264,522 25,321,397 9,901,805 115,487,724 $ $ $ 39,579,866 30,954,716 5,965,369 76,499,951 2024 $ $ 47,350,358 4,450,111 51,800,469 $ 86,930,224 30,954,716 10,415,480 128,300,420 $ 2025 43,335,127 43,283,078 836,724 87,454,929 $ $ 46,122,065 6,874,061 52,996,126 $ 89,457,192 43,283,078 7,710,785 $ 140,451,055 $ $ 85 $ $ 48,568,371 35,045,309 16,135,231 99,748,911 48,690,419 7,583,941 56,274,360 97,258,790 35,045,309 23,719,172 156,023,271 CITY OF STOCKBRIDGE, GEORGIA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2016 Expenses Governmental activities: General government (1) Judicial Public safety Public works Health and welfare Culture and recreation Housing and development Interest on long-term debt Total governmental activities expenses Business-type activities: Water and sewer Stormwater Solid waste Conference center Community center Amphitheater Total business-type activities Total primary government Program Revenues Governmental activities: Charges for services: General government Judicial Capital grants and contributions Total governmental activities program revenues Business-type activities: Charges for services: Water and sewer Stormwater Solid waste Amphitheater Conference center Community center Capital grants and contributions Total business-type activities program revenues Total primary government program revenues $ $ $ $ 3,496,445 447,338 177,125 2,058,092 739,159 602,535 7,520,694 3,090,427 389,999 1,024,671 393,485 51,876 4,950,458 12,471,152 430,767 419,041 2,863,565 Fiscal Year 2018 2017 $ $ $ 3,397,192 172,218 436,880 2,608,574 1,037,910 573,861 8,226,635 3,429,805 599,575 1,270,720 492,130 56,177 5,848,407 14,075,042 440,347 43,678 2,811,531 $ $ $ 4,192,501 198,810 4,768,839 1,480,341 544,013 11,184,504 3,515,666 620,265 1,417,032 502,506 60,532 6,116,001 17,300,505 963,720 28,600 3,387,128 2019 $ $ $ 3,901,360 187,427 266,742 5,915,846 1,878,636 512,812 12,662,823 3,784,323 478,698 1,464,732 572,740 49,948 6,350,441 19,013,264 1,098,764 263,253 3,580,528 2020 $ $ $ 4,448,902 276,608 292,705 4,191,206 1,509,531 1,639,480 480,220 12,838,652 4,359,746 573,183 1,577,462 639,116 44,115 7,193,622 20,032,274 1,019,736 22,212 8,950,956 3,713,373 3,295,556 4,379,448 4,942,545 9,992,904 3,356,353 509,886 1,212,246 168,874 48,538 - 3,580,309 510,920 1,237,250 198,496 46,417 - 3,972,963 521,509 1,248,109 186,452 47,086 - 4,169,272 527,501 1,219,300 121,965 50,239 2,139,259 4,388,102 1,024,877 1,231,457 26,508 1,428 427,618 5,295,897 5,573,392 5,976,119 8,227,536 7,099,990 9,009,270 $ 8,868,948 86 $ 10,355,567 $ 13,170,081 $ 17,092,894 2021 $ $ $ $ 3,760,382 155,059 345,410 3,149,973 42,502 376,263 1,972,305 1,381,846 11,183,740 4,370,327 628,728 1,658,235 2,315,364 567,622 9,540,276 20,724,016 1,382,633 56,495 11,203,137 Fiscal Year 2023 2022 $ $ $ 14,215,859 1,625,210 8,317,170 20,668,385 2,989,823 914,109 48,730,556 4,457,740 579,548 1,884,867 665,555 3,081,604 10,669,314 59,399,870 1,252,877 256,485 32,021,633 $ $ $ 5,354,193 777,988 8,271,475 9,210,873 12,556 3,147,200 815,032 27,589,317 4,434,695 560,434 2,169,370 711,272 7,664,383 15,540,154 43,129,471 3,398,445 998,484 22,829,625 2024 $ $ $ 7,862,580 996,738 10,110,171 9,132,532 9,011 3,037,046 712,944 31,861,022 4,909,923 1,351,190 2,599,035 683,245 8,133,471 17,676,864 49,537,886 5,393,763 1,297,318 27,408,223 2025 $ $ $ 6,784,010 1,007,011 11,201,320 10,225,698 8,949 4,069,160 612,001 33,908,149 5,706,357 993,318 2,531,154 915,342 3,962,337 14,108,508 48,016,657 2,627,673 1,105,257 28,102,997 12,642,265 33,530,995 27,226,554 34,099,304 31,835,927 3,949,637 1,042,072 1,785,974 173,695 563,657 3,991,542 1,037,207 1,811,707 447,580 10,785 24,555,035 4,532,877 1,397,200 1,804,957 3,664,265 126,100 - 4,924,282 1,432,477 2,810,527 2,714,210 173,028 - 5,510,461 1,421,306 2,931,582 1,633,859 161,877 - 7,515,035 31,853,856 11,525,399 12,054,524 11,659,085 20,157,300 $ 65,384,851 $ 38,751,953 $ 46,153,828 $ 43,495,012 (Continued) 87 CITY OF STOCKBRIDGE, GEORGIA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2016 Fiscal Year 2018 2017 2019 2020 Program Revenues (Continued) Net (expense)/revenue: Governmental activities $ Business-type activities Total primary government net expense (3,807,321) $ (4,931,079) 345,439 $ $ (275,015) (3,461,882) $ 124,284 $ (6,805,056) $ (139,882) (5,206,094) $ 126,814 $ (7,720,278) $ (2,845,748) (5,843,183) $ (2,939,380) 352,331 $ 544,338 1,877,095 (6,944,938) $ 221,334 $ (93,632) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes $ Sales taxes 3,785,414 3,887,722 4,161,389 4,474,981 - Franchise taxes 1,480,642 1,419,291 1,497,519 1,559,754 1,599,506 Alcoholic beverage taxes 711,402 726,445 747,612 760,087 842,612 Business and occupation taxes 601,511 661,371 815,350 827,926 959,288 1,642,740 1,751,247 1,888,635 2,012,698 2,122,713 Hotel/Motel taxes 222,993 445,240 454,239 472,110 349,863 Other taxes 103,613 180,437 68,837 136,456 93,190 1,381 2,007 2,761 12,434 27,337 - - - - - (493,164) (2,328,608) (413,906) (330,801) (616,109) 8,180,816 6,871,966 9,443,770 10,277,976 5,922,738 Unrestricted investment earnings 4 - - - - Gain on sale of capital assets - - - - - 493,164 2,328,608 413,906 330,801 616,109 Insurance premium taxes Unrestricted investment earnings Gain on sale of capital assets Transfers Total governmental activities Business-type activities: Transfers Total business-type activities Total primary government 493,168 2,328,608 413,906 330,801 $ 8,673,984 $ 9,200,574 $ 9,857,676 $ $ 4,373,495 $ 1,940,887 $ 2,638,714 $ 616,109 10,608,777 $ 6,538,847 2,557,698 $ 3,076,990 $ 3,599,467 Change in Net Position Governmental activities Business-type activities Total primary government 838,607 $ 5,212,102 2,053,593 $ 3,994,480 274,024 $ 2,912,738 2,207,896 $ 4,765,594 Note: (1) The Community Center and the Conference Center activity was moved from a separate fund to a department within the General Fund in 2021. 88 522,477 2021 $ Fiscal Year 2023 2022 1,458,525 $ (2,025,241) (15,199,561) $ 21,184,542 2024 (362,763) $ (4,014,755) 2025 2,238,282 $ (5,622,340) (2,072,222) (2,449,423) $ (566,716) $ 5,984,981 $ (4,377,518) $ (3,384,058) $ (4,521,645) $ 806,485 $ 770,169 $ 9,368,344 $ 7,889,884 $ 8,137,253 - - - - - 1,494,487 1,614,172 1,767,594 348,499 1,979,543 841,605 851,324 841,664 856,107 881,877 1,083,528 1,210,279 1,529,950 1,695,250 1,696,328 2,187,071 2,389,696 2,568,811 3,404,723 3,880,138 546,818 484,363 1,022,886 1,124,280 1,289,772 131,398 165,611 90,757 250,130 285,025 1,894 1,256 208 219 739,506 - - - 424,668 - 154,386 (4,374,970) (3,544,197) (6,817,997) (5,172,895) 7,247,672 3,111,900 13,646,017 9,175,763 13,716,547 - - - - 1 - - - - - (154,386) 4,374,970 3,544,197 6,817,997 5,172,895 (154,386) $ $ 4,374,970 6,817,997 5,172,896 $ 7,486,870 $ 17,190,214 $ 15,993,760 $ 18,889,443 8,706,197 $ (12,087,661) $ 13,283,254 $ 11,414,045 $ 11,644,325 $ 14,367,798 (2,179,627) $ 3,544,197 7,093,286 6,526,570 25,559,512 $ 13,471,851 (470,558) $ 12,812,696 1,195,657 $ 12,609,702 89 2,723,473 CITY OF STOCKBRIDGE, GEORGIA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Fiscal Year 2016 Property Tax $ 124,284 Sales Tax $ Alcoholic Beverage Tax Franchise Tax 3,785,414 $ 1,480,642 $ 711,402 Business and Occupation Tax $ 601,511 Insurance Premium Tax $ 1,642,740 2017 126,814 3,887,722 1,419,291 726,445 661,371 1,751,247 2018 221,334 4,161,389 1,497,519 747,612 815,350 1,888,635 2019 352,331 4,474,981 1,559,754 760,087 827,926 2,012,698 2020 544,338 - 1,599,506 842,612 959,288 2,122,713 2021 806,485 - 1,494,487 841,605 1,083,528 2,187,071 2022 770,169 - 1,614,172 851,324 1,210,279 2,389,696 2023 9,368,344 - 1,767,594 841,664 1,529,950 2,568,811 2024 7,889,884 - 348,499 856,107 1,695,250 3,404,723 2025 8,137,253 - 1,979,543 881,877 1,696,328 3,880,138 Note: Sales and Use Tax revenues along with most other tax revenue sources have increased due to the significant growth in both population and commercial businesses. The City began collecting property taxes during 2023. 90 Other Taxes $ 326,606 625,677 Total $ 8,672,599 9,198,567 523,076 9,854,915 608,566 10,596,343 443,053 6,511,510 678,216 7,091,392 649,974 7,485,614 1,113,643 17,190,006 1,374,410 15,568,873 1,574,797 18,149,936 91 CITY OF STOCKBRIDGE, GEORGIA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2016 General Fund: Nonspendable Restricted Assigned Unassigned Total General Fund All Other Governmental Funds: Nonspendable Restricted, reported in: Special revenue funds Capital project funds Permanent fund Assigned, reported in: Capital project funds Unassigned Total all other governmental funds $ 2017 $ $ 4,605,760 58,937 11,326,184 15,990,881 $ 5,597 $ $ 2,289,521 2,874 16,328,566 18,620,961 $ 5,000 Fiscal Year 2018 $ 2019 $ $ 2,274,304 829,299 15,634,005 18,737,608 $ 5,000 2020 $ $ 2,276,346 315,625 16,648,682 19,240,653 $ 2,293,686 1,104,366 13,603,614 17,001,666 $ 5,824 $ 5,000 187,190 16,557,661 7,284 337,145 14,963,965 7,284 506,466 16,085,451 6,950 691,087 16,069,737 6,950 839,531 8,432,636 6,950 16,757,732 15,313,394 (162,940) 16,440,927 (61,322) 16,712,276 (3,030,430) 6,253,687 $ 92 $ $ $ 2021 $ $ $ 2,298,715 7,975,208 5,769,093 16,043,016 $ 5,000 $ Fiscal Year 2023 2022 $ $ 2,569,719 679,237 1,212,272 4,461,228 $ 5,566 2024 $ $ 2,486,118 8,468 3,462,355 5,956,941 $ 5,000 2025 $ $ 2,631,093 (710,438) 1,920,655 $ 1,490,801 16,423,053 17,913,854 $ 9,705 $ 5,000 1,059,221 28,620,712 6,950 1,098,311 39,430,598 6,950 1,715,767 44,319,427 7,284 2,776,598 55,586,631 7,284 1,575,585 46,830,913 9,446 353,351 30,045,234 353,351 (260,855) 40,633,921 353,351 46,400,829 353,351 58,733,569 353,351 (8,085) 48,774,295 $ $ $ 93 $ CITY OF STOCKBRIDGE, GEORGIA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2016 Revenues Taxes Licenses and permits Intergovernmental Fines and forfeitures Charges for services Impact fees Rental income Investment earnings Miscellaneous Total revenues $ Expenditures General government Judicial Public safety Public works and parks Health and welfare Culture and recreation Housing and development Capital outlay Debt service: Principal Interest Bond issuance costs Total expenditures 8,625,047 258,637 2,839,897 539,215 5,590 25,049 161,623 12,455,058 Fiscal Year 2018 2017 $ 9,266,993 291,989 2,758,823 68,652 7,858 600 54,715 139,752 12,589,382 $ 9,854,915 714,550 3,278,162 39,297 74,112 30,969 111,727 144,089 14,247,821 2019 $ 2020 10,596,343 697,648 3,437,264 77,523 159,781 36,531 155,698 204,804 15,365,592 $ 6,522,700 819,533 8,780,119 26,498 85,649 292,941 278 66,383 114,115 16,708,216 2,701,378 437,762 136,373 1,699,509 739,159 869,169 2,990,473 180,971 161,280 2,122,376 1,042,949 4,121,584 4,665,663 122,342 148,680 2,361,610 1,479,499 2,886,748 4,558,705 220,695 199,803 2,571,822 1,881,539 3,621,973 4,075,046 214,208 232,493 2,964,115 1,509,531 1,637,282 16,959,540 595,000 613,951 7,792,301 625,000 585,859 11,830,492 650,000 556,491 12,871,033 680,000 525,860 14,260,397 710,000 493,848 28,796,063 Excess of revenues over (under) expenditures 4,662,757 758,890 1,376,788 1,105,195 (12,087,847) Other financing sources (uses) Proceeds from debt issues Recognition of extinguishment of debt Transfers Proceeds from sale of assets Proceeds from leases Total other financing sources (uses) 4,532,836 (54,726) 4,478,110 (120,785) 547,637 426,852 (162,065) 19,457 (142,608) (330,801) (330,801) (616,109) 6,380 (609,729) 774,394 $ (12,697,576) 9.9% 10.0% Net change in fund balances Debt service as a percentage of non-capital expenditures $ 9,140,867 $ 17.7% 1,185,742 14.7% 94 $ 1,234,180 11.4% $ 2021 $ $ 7,074,412 667,913 10,967,695 56,495 168,441 234,829 2,507 546,279 19,718,571 Fiscal Year 2023 2022 $ 7,483,294 813,684 31,806,828 256,485 280,123 213,480 31,560 2,581 127,510 41,015,545 $ 16,337,181 1,541,760 22,825,522 998,484 648,673 2,370 25,827 1,941 1,182,185 43,563,943 2024 $ 15,548,668 2,360,466 26,683,983 1,297,318 1,558,890 588,763 21,192 1,796 1,587,115 49,648,191 2025 $ 17,974,196 1,561,473 26,187,892 1,105,257 798,535 1,066,164 28,499 739,646 1,087,967 50,549,629 4,462,556 212,568 1,126,188 3,530,060 42,502 365,855 1,974,293 9,340,130 6,218,975 357,139 4,435,360 5,883,404 2,990,746 13,444,994 6,386,982 673,186 7,902,482 3,446,186 3,148,134 5,643,276 7,206,557 899,945 9,881,296 4,019,627 3,037,046 6,260,326 7,771,807 837,449 10,434,407 5,545,259 328 4,069,160 5,422,182 745,000 644,376 536,098 22,979,626 3,476,897 943,550 37,751,065 4,762,688 858,036 32,820,970 4,918,679 757,147 36,980,623 4,970,264 657,437 39,708,293 (3,261,055) 3,264,480 10,742,973 12,667,568 10,841,336 25,805,000 154,386 134,566 26,093,952 (4,374,970) (4,374,970) (3,480,352) (3,480,352) (5,077,180) 532,705 173,361 (4,371,114) (4,930,945) 36,100 (4,894,845) 22,832,897 14.7% $ (1,110,490) 15.8% $ 7,262,621 18.7% $ 8,296,454 16.9% 95 $ 5,946,491 15.7% CITY OF STOCKBRIDGE, GEORGIA GENERAL GOVERNMENT TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Fiscal Year 2016 Property Tax $ 124,284 Alcoholic Beverage Tax Franchise Tax $ 1,433,090 $ 711,402 Insurance Premium Tax $ 1,642,740 Business and Occupation Tax $ 546,502 Other Taxes $ 381,615 Total $ 4,839,633 2017 126,814 1,487,717 726,445 1,751,247 661,371 625,677 5,379,271 2018 221,334 1,497,519 747,612 1,888,635 815,350 523,076 5,693,526 2019 352,331 1,559,754 760,087 2,012,698 827,926 608,566 6,121,362 2020 555,528 1,599,506 842,612 2,122,713 959,288 443,053 6,522,700 2021 806,485 1,494,487 841,605 2,187,071 1,083,528 678,216 7,091,392 2022 770,169 1,614,172 851,324 2,389,696 1,210,279 649,974 7,485,614 2023 9,368,344 1,767,594 841,664 2,568,811 1,529,950 1,113,643 17,190,006 2024 7,889,884 348,499 856,107 3,404,723 1,695,250 1,374,410 15,568,873 2025 8,137,253 1,979,543 881,877 3,880,138 1,696,328 1,574,797 18,149,936 Note: Sales and Use Tax revenues along with most other tax revenue sources have increased due to the significant growth in both population and commercial businesses. 96 CITY OF STOCKBRIDGE, GEORGIA ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Assessed Value Real and Personal Property Tax Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $ 806,767,219 851,439,452 903,388,035 962,641,023 1,016,246,217 1,071,979,964 1,308,782,765 1,862,016,835 1,946,152,488 1,935,469,504 Motor Vehicle $ 11,699,210 8,526,740 5,912,810 4,770,560 3,822,220 3,081,600 2,928,210 3,223,550 3,426,920 2,680,570 Mobile Home $ 1,475,725 1,540,136 1,534,666 1,755,941 1,767,905 1,774,787 1,862,463 1,934,485 2,032,449 2,043,056 Other $ SOURCE: Henry County Tax Commissioner Note: Assessed value is calculated at 40% of estimated actual fair market value. 97 20,499 57,530 112,255 42,036 39,322 18,410 5,260 7,529 10,770 Total Taxable Assessed Value Less: Tax-Exempt Property $ (8,617,909) (13,588,601) (15,504,457) (12,896,367) (16,847,322) (19,642,092) (27,440,912) (41,485,697) (44,708,060) (116,606,438) $ 811,344,744 847,917,727 895,388,584 956,383,412 1,005,031,056 1,057,233,581 1,286,150,936 1,825,694,433 1,906,911,326 1,823,597,462 Total Direct Tax Rate 0.000 0.000 0.000 0.000 0.000 0.000 0.000 3.770 3.770 3.770 CITY OF STOCKBRIDGE, GEORGIA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS (PER $1,000 OF ASSESSED VALUE) LAST TEN FISCAL YEARS Tax/Fiscal Year City County County School District M&O County School District Bond Water Hospital State Total 2016 - 12.73 20.00 3.63 2.00 - - 38.36 2017 - 12.73 20.00 3.63 2.00 - - 38.36 2018 - 12.73 20.00 3.63 2.00 - - 38.36 2019 - 12.73 20.00 3.63 2.00 - - 38.36 2020 - 12.73 20.00 3.63 2.00 - - 38.36 2021 - 12.73 20.00 3.63 2.00 - - 38.36 2022 - 12.73 20.00 3.63 2.00 - - 38.36 2023 3.77 10.28 20.00 3.63 2.00 - - 39.67 2024 3.77 10.73 20.00 2.00 2.00 - - 38.50 2025 3.77 10.73 21.80 2.00 2.00 - - 40.30 SOURCE: Henry County Tax Commissioner Note: All tax rates are per $1,000 assessed valuation, less exemptions. 98 CITY OF STOCKBRIDGE, GEORGIA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Taxpayer Sterling Atlanta Apartments LLC St. Ives LLC CSP Community Owner LLC Eastwood Villlage Garden LP Washreit 860 South LLC AR-Eagles Lndg LLC, JFB - Eagles Lndg LLC Waterford Landings Apartments LLC Render Apartment 700 Rock Quarry Property LLC Washreit 900 Dwell LLC South Atlanta Eastwood Village LLC Wal-Mart Real Estate Business Trust #3402.00 JES at Eagles Landing LLC & Roundtrippers HPI Waterford Landing DST Wal-Mart Real Estate Business Trust Georgia Power Company Sagebrush Stonegate Apartments LLC Eagles Landing First Baptist Total Fiscal Year 2025 Percentage of Total Taxable Taxable Assessed Assessed Value Rank Value $ 60,600 55,200 52,084 46,500 44,577 43,500 40,173 36,240 35,289 35,275 449,438 SOURCE: Henry County Tax Commissioner Note: Amounts expressed in thousands. Note: Information based on total tax for all Henry County taxpayers. 99 1 2 3 4 5 6 7 8 9 10 3.12% 2.85% 2.68% 2.40% 2.30% 2.24% 2.07% 1.87% 1.82% 1.82% 23.17% Fiscal Year 2016 Percentage of Total Taxable Taxable Assessed Assessed Value Rank Value $ 26,361 21,600 24,967 19,425 19,300 19,015 15,987 15,835 14,937 14,810 192,237 1 3 2 4 5 6 7 8 9 10 3.54% 2.90% 3.36% 2.61% 2.59% 2.56% 2.15% 2.13% 2.01% 1.99% 25.84% CITY OF STOCKBRIDGE, GEORGIA PRINCIPAL FRANCHISE TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Fiscal Year 2025 Franchise Taxpayer Revenue Rank Georgia Power Company Atlanta Gas Light Charter Snapping Shoals Comcast Directv College Park Bellsouth Weave Communication Spectrotel Vontage Fusion Cloud (Birch) Fusion (Cbeyond Communications) $ 1,558,817 231,530 72,835 39,748 24,867 9,642 6,882 4,583 313 25 - 1 2 3 4 5 6 7 8 9 10 Total $ 1,949,242 SOURCE: Stockbridge Finance Department 100 Fiscal Year 2016 Percentage of Total Revenue Revenue Rank 79.97% 11.88% 3.74% 2.04% 1.28% 0.49% 0.35% 0.24% 0.02% 0.00% - $ 1,111,355 92,568 136,255 5,987 43,269 132,306 7,833 165 2,505 6,799 1 4 2 8 5 100.00% $ 1,539,042 3 6 10 9 7 Percentage of Total Revenue 72.21% 6.01% 8.85% 0.39 2.81% 8.60% 0.51% 0.16% 0.44% 100.00% CITY OF STOCKBRIDGE, GEORGIA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Fiscal Year Redevelopment Agency Bonds Governmental Activities Public Facilities Authority Bonds Leases 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $ $ 13,025,000 12,400,000 11,750,000 11,070,000 10,360,000 9,615,000 8,835,000 8,015,000 7,160,000 6,270,000 25,805,000 23,120,000 19,205,000 15,225,000 11,175,000 $ 105,492 77,804 167,486 137,222 Revenue Bonds Total $ 13,025,000 12,400,000 11,750,000 11,070,000 10,360,000 35,420,000 32,060,492 27,297,804 22,552,486 17,582,222 $ SOURCE: Population data from Quick Facts Census Data. Note: Details regarding the City's outstanding debt can be found in Note 7 of the current financial statements. 101 Business-type Activities Notes Payable Total - $ 1,515,078 1,432,156 1,346,713 1,258,670 1,213,649 1,120,169 1,023,845 924,592 823,674 - $ 1,515,078 1,432,156 1,346,713 1,258,670 1,213,649 1,120,169 1,023,845 924,592 823,674 - $ Total Primary Government Population Percentage of Personal Income 14,540,078 13,832,156 13,096,713 12,328,670 11,573,649 36,540,169 33,084,337 28,222,396 23,376,160 17,582,222 28,202 29,114 29,638 29,904 24,794 29,163 29,064 28,567 35,893 36,331 2.25% 2.07% 1.81% 1.59% 1.49% 4.71% 3.89% 3.91% 3.91% 3.91% Per Capita $ 516 475 442 412 467 1,253 1,138 988 651 484 102 CITY OF STOCKBRIDGE, GEORGIA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31, 2025 Amount of Outstanding Debt Category of Debt Percentage Applicable To Government Amount Applicable to City of Stockbridge Direct: City of Stockbridge URA Revenue Bonds City of Stockbridge PFA Revenue Bonds Leases Total Direct Debt $ 6,270,000 11,175,000 137,222 17,582,222 100.00% 100.00% 100.00% $ 6,270,000 11,175,000 137,222 17,582,222 3,014,915 6,700,000 9,714,915 13.36% 13.36% 402,793 895,120 1,297,913 2,279,111 244,240,000 246,519,111 13.36% 13.36% 304,489 32,630,464 32,934,953 Overlapping: General Obligation Debt: Henry County Leases Henry County General Obligation Henry County Schools Leases Henry County Schools Bonds Payable Total Direct and Overlapping Debt $ SOURCE: Henry County Audited FY 2024 Financial Statements. Henry County Board of Education Audited FY 2024 Financial Statements. 103 273,816,248 $ 51,815,088 CITY OF STOCKBRIDGE, GEORGIA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2016 Debt limit $ Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit 81,134,474 $ 84,791,773 $ Fiscal Year 2018 2017 81,134,474 $ $ 84,791,773 0.00% 0.00% 2019 89,538,858 $ $ 89,538,858 0.00% $ 2020 95,638,341 $ 100,503,106 - - 95,638,341 $ 100,503,106 0.00% 0.00% Note: Under Georgia law, the City's outstanding general obligation debt should not exceed 10% of total assessed property value. The City has no general obligation debt that is subject to the debt limitation. 104 $ $ 2021 2022 105,723,358 $ 128,615,094 - - 105,723,358 $ 128,615,094 0.00% 0.00% $ $ Fiscal Year 2023 2024 182,569,443 $ 195,161,939 - - 182,569,443 $ 195,161,939 0.00% 0.00% 105 2025 $ 194,020,390 - $ 194,020,390 0.00% CITY OF STOCKBRIDGE, GEORGIA PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS Fiscal Year Water & Sewer Fund Gross Revenues 2016 $ 3,784,703 Water & Sewer Debt Net Available Revenue Principal Less: Operating Expenses $ 2,400,268 $ 1,384,435 $ 80,474 Interest 46,565 10.90 2017 5,788,132 2,715,737 3,072,395 82,922 44,111 24.19 2018 4,224,804 2,778,790 1,446,014 85,443 41,583 11.38 2019 6,308,531 2,955,003 3,353,528 88,043 38,977 26.40 2020 4,721,445 3,545,305 1,176,140 45,021 18,373 18.55 2021 4,404,851 3,528,253 876,598 93,480 33,760 6.89 2022 5,744,460 3,611,789 2,132,671 96,324 30,917 16.76 2023 4,596,722 3,565,255 1,031,467 99,253 27,987 8.11 2024 6,665,099 3,978,587 2,686,512 100,918 23,402 21.61 2025 6,275,461 4,394,073 1,881,388 823,674 27,707 2.21 Notes: (1) Details regarding the City's outstanding debt can be found in the notes to the financial statements. (2) Operating expenses do not include interest, depreciation, or amortization expense. (3) Gross revenues include capital contributions. 106 $ Coverage Urban Redevelopment Revenue Bonds Gross/ Pledged Revenues $ 1,208,951 Principal $ 595,000 Interest $ Coverage 613,951 1.00 1,210,859 625,000 585,859 1.00 1,206,491 650,000 556,491 1.00 1,205,860 680,000 525,860 1.00 1,203,848 710,000 493,848 1.00 1,205,337 745,000 460,337 1.00 1,205,213 780,000 425,213 1.00 1,208,356 820,000 388,356 1.00 1,204,765 855,000 349,765 1.00 1,199,562 890,000 309,562 1.00 107 CITY OF STOCKBRIDGE, GEORGIA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Personal Income (thousands) (2) Population 28,202 29,114 29,638 29,904 24,794 29,163 29,064 28,567 35,893 36,331 (5) (5) (5) (5) (5) (5) (5) (5) (5) (5) 647,094,890 667,234,652 724,826,928 775,470,528 775,470,528 848,409,996 720,612,816 655,469,815 1,286,082,083 1,298,869,581 Per Capita Personal Income (2) 22,945 22,918 24,456 25,932 25,932 29,092 24,794 22,945 35,831 35,751 (5) (5) (5) SOURCES: Atlanta Regional Commision (2) Sperling's Best Places (3) Henry County Board of Education (4) Homefacts.com (5) U.S. Census Bureau Estimates (6) Georgia Labor Market Explorer (1) 108 Median Age (2)(5) (2) (2) (2) 35.8 35.3 35.8 34.6 34.6 36.7 36.7 36.4 39.5 36.4 School Enrollment (3) Stockbridge Unemployment Rate (4) 1,604 1,617 1,612 1,522 1,522 1,436 1,414 1,518 1,413 1,413 6.6% 4.9% 4.3% 4.7% 4.7% 3.8% 2.9% 3.6% 3.6% 4.3% (6) CITY OF STOCKBRIDGE, GEORGIA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Fiscal Year 2025 Employer Employees Piedmont Hospital Walmart Supercenter Kohl's Department Store Publix Super Market Henry County Schools within the City Costco City of Stockbridge Eagles Landing Christian Academy Eagles Landing Country Club Ingles Brandsmart USA Vulcan Materials 1,505 644 437 227 197 192 179 172 98 90 - Total 3,741 Rank 1 2 3 4 5 6 7 8 9 10 Fiscal Year 2016 Employer's percentage of total employment Employees 40.23% 17.21% 11.68% 6.07% 5.27% 5.13% 4.78% 4.60% 2.62% 2.41% - N/A 722 94 268 188 N/A 71 144 46 102 104 29 1,768 SOURCE: City of Stockbridge, Georgia records. N/A - information not available. 109 Rank 1 7 2 3 8 4 9 8 5 10 Employer's percentage of total employment 40.20% 5.23% 14.92% 10.47% 3.95% 8.02% 2.56% 5.68% 5.79% 1.61% CITY OF STOCKBRIDGE, GEORGIA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2016 2017 2018 2019 Fiscal Year 2020 2021 2022 2023 2024 2025 Executive Administration Human resources Finance Governing body City clerk Facilities maintenance Municipal court Public works and parks City events IT Code enforcement Police Permitting development Planning and zoning Community development Business Services Economic development Main street GIS Water/Sewer Stormwater Sanitation Conference Center 5 10 4 3 17 1 2 2 1 16 7 1 2 4 12 2 1 13 1 2 2 1 15 7 1 3 5 12 2 1 19 1 2 2 1 18 6 1 3 5 6 5 2 2 17 1 2 2 2 1 2 1 18 5 1 4 7 8 5 2 2 18 1 2 2 2 1 2 1 18 5 1 4 6 10 5 2 2 18 1 3 5 2 2 1 2 1 22 5 1 5 5 13 6 2 2 21 3 2 62 2 5 2 1 14 3 1 3 6 10 4 2 3 18 3 3 62 3 2 1 3 1 16 4 1 6 5 2 7 2 3 3 3 26 3 71 12 5 15 7 1 7 5 0 4 9 2 3 2 2 24 7 2 0 74 6 5 0 3 2 2 1 17 8 1 0 Total 71 64 73 76 81 93 147 148 172 179 Function SOURCE: City of Stockbridge, Georgia records Notes: (1) Elected officials and appointed court personnel are not included. (2) The City uses personnel services lawn maintenance, not included above. 110 CITY OF STOCKBRIDGE, GEORGIA OPERATING INDICATORS BY FUNCTION LAST TEN CALENDAR YEARS Function Municipal Court Fines and forfeitures Number of cases Conference Center Annual rents Occupation Tax Annual renewals New business licenses Public Works Miles resurfaced Stormwater Potential ponds identified Total number of pipes Total number of feet of pipes Complaints 2016 $ Fiscal Year 2018 2017 539,215 1,702 $ 57,196 281 $ 27,845 300 2019 $ 2020 55,425 574 $ 25,287 131 168,874 191,568 160,280 155,582 17,038 1,539 279 1,681 228 1,880 202 2,056 128 2,354 250 2.4 5.0 5.1 4.7 5.7 188 3,102 434,491 119 188 3,102 434,491 88 186 3,102 432,960 111 193 3,433 101,385 101 193 359 48,959 52 SOURCE: City of Stockbridge, Georgia records. Note: Revenues from fines decreased significantly in 2016 as Henry County diverted citations to the Henry County State Court and due to the change in probation tolling laws. Revenues decreased significantly in 2020 due to facilities being closed due to COVID-19. Additionally, there was a change in the State probation tolling laws. 111 2021 $ Fiscal Year 2023 2022 37,728 381 $ 58,522 1,819 $ 2024 2025 875,456 4,764 $ 1,243,457 5,991 $ 1,105,256 5,014 9,660 10,170 148,281 130,635 145,425 2,432 263 2,487 485 2,495 229 2,086 190 2,443 220 4.7 5.1 7.0 7.9 6.8 37 311 187,672 68 52 216 85,743 69 52 3,213 489,034 43 169 3,360 496,000 36 198 3,505 434,496 217 112 CITY OF STOCKBRIDGE, GEORGIA CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS Function/Program 2016 Fiscal Year 2018 2017 2019 2020 Public Works City limits (square miles) Paved roads (miles) 14.1 97.08 14.1 97.08 14 97 14 97 14.1 97.08 Sanitation Transfer stations Collection trucks Small collection vehicles 1 5 9 1 1 5 1 1 5 1 1 5 1 1 5 Recreation and culture Parks Community centers Library Cemeteries 4 2 1 3 4 2 1 3 4 2 1 3 4 2 1 3 4 2 1 3 Water Water mains (miles) Fire hydrants Service connections Daily avg consumption (gallons) Storage capacity (gallons) 44.5 457 2,764 679,564 1,800,000 44.5 458 2,726 684,970 1,800,000 44.5 459.00 2,833 627,728 1,800,000 45.0 460.00 2,866 515,828 1,800,000 45 460.00 2,958 500,000 1,800,000 Sewer Sanitary sewers (miles) Service connections Treatment plants Daily avg treatment (gallons) Treatment capacity 39.5 4,858 1 .754 MGD 1.5 MGD 40.0 2,431 1 .761 MGD 1.5 MGD 40.0 2,516 1 .761 MGD 1.5 MGD 40.0 2,568 1 .761 MGD 1.5 MGD 40.0 2,568 1 .761 MGD 1.5 MGD SOURCE: City of Stockbridge, Georgia records. 113 2021 Fiscal Year 2023 2022 2024 2025 14.1 97.08 14.1 97.08 14.1 141.18 14.1 141.18 19.1 141.18 1 1 5 1 1 5 1 1 - 1 1 - 1 1 6 4 2 1 3 4 2 1 3 4 2 1 2 4 2 1 2 5 1 1 2 45 460.00 2,958 500,000 1,800,000 45 460.00 2,958 500,000 1,800,000 45 460.00 2,901 853,000 1,800,000 45 460.00 3,105 853,000 1,800,000 45 475.00 2,976 879,771 1,800,000 40.0 2,467 1 .761MGD 1.5MGD 40.0 2,467 1 .714MGD 1.5MGD 40.0 2,901 1 .960MGD 1.5MGD 40.0 2,901 1 .960MGD 1.5MGD 41.0 2,816 1 .645MGD 1.5MGD 114 COMPLIANCE SECTION INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of City Council City of Stockbridge, Georgia Stockbridge, Georgia We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“Government Auditing Standards”), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Stockbridge, Georgia (the “City”) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated July 30, 2026. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2025-001 though 2025-005 that we consider to be material weaknesses. MAULDIN & JENKINS, LLC • 300 MULBERRY STREET • POST OFFICE BOX 1877 • MACON, GEORGIA 31202-1877 478-464-8000 • FAX 478-464-8051 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The City of Stockbridge’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The City’s responses were not subjected to the other auditing procedures applied in the audit of the financial statements, and accordingly, we express no opinion on them. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Macon, Georgia July 30, 2026 116 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of City Council City of Stockbridge Stockbridge, Georgia Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Stockbridge, Georgia’s (the “City”) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended December 31, 2025. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. In our opinion, the City of Stockbridge, Georgia complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2025. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (“GAAS”); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“Government Auditing Standards”); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified and unmodified opinions on compliance for each major federal program. Our audit does not provide a legal determination of City’s compliance with the compliance requirements referred to above. MAULDIN & JENKINS, LLC • 300 MULBERRY STREET • POST OFFICE BOX 1877 • MACON, GEORGIA 31202-1877 478-464-8000 • FAX 478-464-8051 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to City’s federal programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. 118 We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Other Matters Government Auditing Standards requires the auditor to perform limited procedures on the City of Stockbridge, Georgia’s response to the noncompliance finding identified in our compliance audit described in the accompanying Schedule of Findings and Questioned Costs. The City of Stockbridge, Georgia’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 119 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Macon, Georgia July 30, 2026 120 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2025 Grant Program U.S. Department of Treasury Direct Award: COVID-19 Coronavirus State and Local: Fiscal Recovery Fund Pass-through from the State of Georgia: Public Safety and Community Violence Reduction Grant Program Total U.S. Department of Treasury U.S. Department of Justice Direct Award: Public Safety Partnerships and Community Policing Grants: COPS Hiring Program Public Safety Partnerships and Community Policing Grants: Supporting Law Enforecement Agencies in Seeking Accreditation Bulletproof Vest Partnership Program Byrne Discretionary Grants Total U.S. Department of Justice Federal Assistance Listing Number Grant I.D. 21.027 N/A 21.027 GA-0013874 416,553 1,377,949 16.710 15JCOPS-22-GG-03440-UHPX 266,420 16.710 16.607 16.753 15JCOPS-23-GG-02083-PPSE 2023-BU-BX-23035646 15PBJA-23-GG-00087-BRND 57,300 531 39,577 363,828 Expenditures $ $ Total Expenditures of Federal Awards 121 961,396 1,741,777 CITY OF STOCKBRIDGE, GEORGIA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2025 NOTE 1. BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Stockbridge, Georgia (the “City”) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. NOTE 2. DE MINIMIS INDIRECT COST RATE The City elected not to use the 10% de minimis cost rate for the year ended December 31, 2025. NOTE 3. SUBRECIPIENTS The City did not pass through any funds to subrecipients during the year ended December 31, 2025. 122 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 SECTION I SUMMARY OF AUDITOR’S RESULTS Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP. Internal control over financial reporting: Material weaknesses identified? Unmodified X Yes No Significant deficiencies identified not considered to be material weaknesses? Yes X None Reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal Control over major programs: Material weaknesses identified? X Significant deficiencies identified? Yes Yes Type of auditor’s report issued on compliance for major programs No X None Reported X No Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes Identification of major program: Assistance Listing Number 21.027 Name of Federal Program or Cluster COVID-19 – Coronavirus State and Local Fiscal Recovery Fund Dollar threshold used to distinguish between Type A and Type B programs: $1,000,000 Auditee qualified as low-risk auditee? Yes 123 X No CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES 2025 – 001. Management of Receivable, Revenue, Unearned Revenue and Unavailable Revenue Accounts Criteria: Generally accepted accounting principles require revenues to be recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. As a part of these processes, the City should review all revenue transactions to determine reporting in the proper period. Condition: The City did not properly adjust receivables and related balances in the various funds as of December 31, 2025. Effect: The following adjustments were made to adjust receivables and related balances as of December 31, 2025:           General Fund – Net adjustments to increase receivables by $2,084,550, increase revenue by $475,908, increase expenditures by $2,392, increase fund balance by $1,528,080, and increase unavailable revenue by $82,955. Grants Fund – Net adjustments to decrease revenue by $200,000 and increase fund balance by $200,000. SPLOST V Fund – Net adjustments to decrease revenue and taxes receivable by $625,872. SPLOST VI Fund – Net adjustments to decrease revenue and cash by $638,974. TSPLOST Fund – Net adjustment to decrease revenue by $590,212 and increase fund balance by $590,212. Water & Sewer Fund – Net adjustment to decrease receivables by $14,687, decrease revenue by $14,687, decrease expenditures by $2,638, and decrease the allowance for doubtful accounts by $2,638. Stormwater Fund – Net adjustment to increase receivables by $55,747, increase revenue by $56,147, and increase expenses by $400. Solid Waste Fund – Net adjustments to increase receivables by $47,454, increase revenue by $31,524, increase expenses by $491, and increase unavailable revenue by $16,420. Conference Center Fund – Net adjustments to increase revenue by $24,954, to increase unearned revenue by $4,923, to decrease accounts payable by $17,710, and to increase expenses by $12,166. Tax Allocation District Fund – Net adjustment to increase taxes receivable and tax revenue by $2,580. Cause: Management oversight. Recommendation: We recommend that the City strengthen its control over its receivables and related balances to ensure balances are properly stated at year-end. Views of Responsible Officials and Planned Corrective Action: We concur. We will implement procedures to strengthen controls over the City’s receivables and related balances at year-end to ensure balances are properly stated. 124 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES (CONTINUED) 2025 – 002. Depreciation and Accumulated Depreciation for Governmental Funds Criteria: Generally accepted accounting principles require depreciation to be reported in the government-wide financial statements because these statements are prepared on the full accrual basis of accounting, which recognizes the consumption of long-term assets. In contract, governmental funds, which focus on short-term financial resources, are reported on the modified accrual basis and therefore do not report depreciation. Condition: During fiscal year 2025, the City recorded depreciation and accumulated depreciation in the General Fund. Effect: The following adjustments were made to properly state the expenditures in the General Fund:     An adjustment to increase expenditures by $528,478. An adjustment to decrease cash by $531,877. An adjustment to decrease accumulated depreciation by $82,214. An adjustment to decrease depreciation by $78,815. Cause: Management oversight. Recommendation: We recommend that the City strengthen internal controls over the recording of depreciation and accumulated depreciation in the correct types of funds to ensure that balances are properly stated at year-end. Views of Responsible Officials and Planned Corrective Action: We concur. Additional controls will be implemented to ensure expenditures are properly reported at year-end. 125 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES (CONTINUED) 2025 – 003. Capitalization of Capital Assets & Accounting for Assets Held for Resale Criteria: Generally accepted accounting principles require capital assets purchased or acquired be reported at historical cost or estimated historical cost. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Assets held for resale should be recorded at the lower of cost or net realizable value. Condition: The City excluded capital items from its governmental capital assets detail and its business-type detail for the year December 31, 2025. Additionally, the City did not properly transfer capital assets between governmental and business-type funds when projects were completed. Assets held for resale were incorrectly removed from governmental funds during 2025. Effect: The following adjustments were made to properly record activity during the year:        General Fund: An adjustment to decrease assets held for sale and fund balance by $522,512. Water & Sewer Fund: An adjustment to increase cash by $531,877, increase capital assets by $2,788,947, increase accumulated depreciation by $2,370,042, increase depreciation expense by $981,054, increase capital contributions by $193,560, decrease net position by $393,948, and decrease expenses by $1,344,328. Stormwater Fund: An adjustment to decrease capital assets by $261,662, increase accumulated depreciation by $144,561, increase depreciation expense by $489,593, increase capital contributions by $48,390, and decrease expenses by $34,980. Solid Waste Fund: An adjustment to decrease capital assets by $29,946, increase accumulated depreciation by $14,973, and increase depreciation expense by $44,918. Conference Center Fund: An adjustment to increase capital assets and decrease expenses by $12,893. Amphitheater Fund: An adjustment to increase capital assets by $212,850, increase accumulated depreciation by $1,217,123, increase depreciation expense by $1,217,123, and decrease expenses by $212,850. Governmental Activities: Adjustment to decrease construction in progress by $1,146,123. Cause: Internal controls over capital assets were not in place to ensure the proper capitalization of all capital assets. Recommendation: We recommend that the City strengthen internal controls over the capitalization and reporting of capital assets Views of Responsible Officials and Planned Corrective Action: We concur. We will strengthen procedures to ensure capital assets are properly recorded. 126 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES (CONTINUED) 2025 – 004. Accounting and Reporting of Amphitheater Expenditures Criteria: Generally accepted accounting principles require that expenses must be recorded in the fund from which they are legally or contractually authorized to be paid. Additionally, proper internal controls should be in place to ensure that all disbursements are properly reviewed and approved by an authorized individual. Condition: During fiscal year 2025, the City did not properly adjust expenditures in the General Fund for the activity of the Amphitheater, as well as payment to a third party. During the testing of Amphitheater expenditures, it was noted that two disbursements did not have proper approvals by management or supporting documentation. Effect: The following adjustments were made to properly state expenditures:  General Fund – An adjustment to increase expenditures and decrease cash by $6,013,271. Cause: Management oversight. Recommendation: We recommend that the City strengthen internal controls over expenditures and related activity for the Amphitheater to ensure that balances are properly stated at year-end and that all expenditures are reviewed and approved by management before being paid. Views of Responsible Officials and Planned Corrective Action: We concur. Additional controls will be implemented to ensure expenditures are properly reviewed and approved at year-end. 127 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES (CONTINUED) 2025 – 005. Interfund Activity Criteria: Generally accepted accounting principles require the reporting of interfund receivables and payables when transactions occur between individual funds for goods provided or services rendered. Additionally, transfers should be recorded for when funds are not expected to repay interfund receivables/payables. Condition: Interfund receivables/payables and transfers were not properly stated for the period ended December 31, 2025. Effect: The following adjustments were made to properly state the interfund amounts:             General Fund – Net adjustments to increase cash by $388,326, increase interfund payables by $4,843,114, increase transfers out by $4,046,366, decrease accounts payable by $504, decrease revenues by $407,920, and to decrease expenditures by $1. Grants Fund – An adjustment to decrease cash by $626,999, increase interfund receivables by $620,765, and to increase transfers out by $6,234. Downtown Development Fund – An adjustment to increase cash by $5,946, increase interfund payables by $45,893, increase transfers in by $45,000, and increase expenditures by $84,947. City-wide Development Fund – An adjustment to decrease cash by $417,050, decrease interfund payables by $407,753, increase transfers in by $45,000, increase expenditures by $62,797, and increase revenue by $8,500. Public Facilities Authority – An adjustment to decrease interfund payables and expenditures by $4,386,740. Water & Sewer Fund – An adjustment to increase cash by $1,631,254 and decrease interfund receivables by $1,631,254. Stormwater Fund – An adjustment to increase cash and interfund payables by $314,825. Solid Waste Fund – An adjustment to increase cash and interfund payables by $3,831,866. Amphitheater Fund – An adjustment to increase cash by $3,635,185, increase interfund payables by $35,185, increase transfers in by $2,638,457, and decrease expenses by $961,544. SPLOST IV Fund – An adjustment to decrease cash by $356,661, decrease interfund payables by $119,577, and increase transfers out by $236,080. Urban Redevelopment Fund – An adjustment to increase cash and interfund payables by $33,256. Impact Fee Fund – An adjustment to increase cash and interfund payables by $1,332,383. Cause: Management oversight. Recommendation: We recommend that the City strengthen internal controls over interfund activity to ensure interfund activity is properly stated at year-end. Views of Responsible Officials and Planned Corrective Action: We concur. Additional controls will be implemented to ensure interfund activity is properly recorded. 128 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2025 2024 – 001. Management of Receivable, Revenue, Unearned Revenue and Unavailable Revenue Accounts Criteria: Generally accepted accounting principles require revenues to be recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. As a part of these processes, the City should review all revenue transactions to determine reporting in the proper period. Condition: The City did not properly adjust receivables and related balances in various funds as of December 31, 2024. Auditee Response/Status: Unresolved – See Finding 2025 – 001. 2024 – 002. Interfund Activity Criteria: Generally accepted accounting principles require the reporting of interfund receivables and payables when transactions occur between individual funds for goods provided or services rendered. Condition: Interfund receivables/payables and transfers were not properly stated for the period ended December 31, 2024. Auditee Response/Status: Unresolved – See Finding 2025 – 005. 2024 – 003. Management of Prepaid Assets and Expenditures Criteria: Generally accepted accounting principles require expenses to be recognized in the same accounting period as the revenues they help generate. Accordingly, prepaid assets are recognized when an expenditures/expense is made for goods or services that were purchased for consumption but not consumed as of year-end. Condition: Interfund receivables/payables and transfers were not properly stated for the period ended December 31, 2024. Auditee Response/Status: Resolved. 129 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2025 2024 – 004. Inventory Criteria: Generally accepted accounting principles require inventory to be reported as an asset and the recognition of expense to be deferred to the period in which the inventory is consumed. Condition: During fiscal year 2024, the City did not reconcile the general ledger to reflect inventory on hand as of December 31, 2024. Auditee Response/Status: Resolved. 2024 – 005. Expenditures and Adjustments to Cash Criteria: Generally accepted accounting principles require expenses to be reported when they are incurred, regardless of the timing of related cash flows. Condition: During fiscal year 2024, the City recorded expenditures due to resolutions being passed but in which actual expenditures were not incurred during the year. Auditee Response/Status: Resolved. 2024 – 006. Accounting and Reporting of Amphitheater Expenditures Criteria: Generally accepted accounting principles require that expenses must be recorded in the fund from which they are legally or contractually authorized to be paid. Additionally, proper internal controls should be in place to ensure that all disbursements are properly reviewed and approved by an authorized individual. Condition: During fiscal year 2024, the City did not properly adjust expenditures in the General Fund for the activity of the Amphitheater. During the testing of Amphitheater expenses, it was noted that numerous disbursements did not have proper approvals by management. Additionally, support for some disbursements was not available. Auditee Response/Status: Partially resolved – See Finding 2025 – 004. 130 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2025 2024 – 007. Accounting and Reporting of Expenses and Accrued Liabilities Criteria: Generally accepted accounting principles require timely reporting of all current liabilities when goods have been received or services have been performed, regardless of the timing of related cash flows. Condition: During fiscal year 2024, the City did not properly adjust liabilities in the SPLOST IV fund as of December 31, 2024. Auditee Response/Status: Resolved. 2024 – 008. Depreciation and Accumulated Depreciation for Governmental Funds Criteria: Generally accepted accounting principles require depreciation to be reported in the government-wide financial statements because these statements are prepared on the full accrual basis of accounting, which recognized the consumption of long-term assets. In contract, governmental funds, which focus on short-term financial resources, are reported on the modified accrual basis and therefore do not report depreciation. Condition: During fiscal year 2024, the City recorded depreciation and accumulated depreciation in the General Fund. Auditee Response/Status: Unresolved – See Finding 2025 – 002. 2024 – 009. Capitalization of Capital Assets Criteria: Generally accepted accounting principles require capital assets purchased or acquired to be reported at historical cost or estimated historical cost. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Condition: During fiscal year 2024, the City excluded capital items form its governmental capital assets detail and its business-type detail for the year ended December 31, 2024. Auditee Response/Status: Unresolved – See Finding 2025 – 003. 131 CITY OF STOCKBRIDGE, GEORGIA SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2025 2024 – 010. COVID-19 Coronavirus State and Local Fiscal Recovery Fund Grants (“CSLFRF”) – Assistance Listing 21.027 – Reporting Criteria: Recipients are required to submit quarterly financial reports within thirty dates of the closet of a quarterly time period. Condition: Multiple required reports were not submitted timely. Auditee Response/Status: Resolved. 2024 – 011. Public Safety Partnerships and Community Policing Grants (“COPS”) – Assistance Listing 16.710 – Reporting Criteria: Recipients are required to submit quarterly financial and semi-annual performance reports within thirty days of the close of a quarterly or semi-annual time period. The quarterly reports are also required to have all financial records, such as general ledgers and supporting documentation. Condition: Multiple required reports were not submitted timely. Auditee Response/Status: Resolved. 132 133 134 September 14, 2026 ✔ ✔ ✔ Decius T. Aaron Public Works Request For Proposals No. 2025-0007 - City of Stockbridge Right-of-Way and Other Purposes with Crabapple Landscape Experts. Funding Source: Account Number 100-42200-522000 (ROW Maintenance) in the Public Works budget. The Public Works Department is requesting City Council approval to exercise the first (1st) year optional renewal for RFP No. 2025-0007, Right-Of-Way Maintenance and Other Services with Crabapple Landscape Experts for the period of January 1 through December 31, 2027. On June 4, 2025, the Procurement Department solicited RFPs from qualified firms to provide Right-of-Way maintenance services to provide orderly and uniform significant visual appearance to the eleven (11) corridors. ✔ $300,000.00 ✔ City of Stockbridge Right-of-Way and Other Purposes with Crabapple Landscape Experts. The Public Works Department respectfully requests City Council approval to exercise the first (1st) of four (4) optional renewals for RFP No. 2025-0007, Right-of-Way Maintenance with Crabapple Landscape Experts for dates January 1, 2027 through December 31, 2027. The City’s overall goal with this contract is to provide an orderly and uniform visual appearance throughout significant corridors that define the City’s boundaries. The eleven (11) corridors are State Route 138 West, North Henry Boulevard, East Atlanta Road, Campground Road, Davidson PKWY, Flippen Road, Hudson Bridge Road, Jodeco Road, Old Atlanta Road, Rock Quarry Road, and Walt Stephens Road. The contract terms provides for an initial one (1)-year term, with the option to renew for up to four (4) additional oneyear periods, at the sole discretion of the City of Stockbridge and subject to City Council approval, as applicable. The Public Works Department has evaluated Crabapple Landscape Experts’ performance and determined that the contractor has satisfactorily fulfilled its contractual obligations and continues to provide quality On-Call General Engineering Maintenance Services in accordance with the requirements and specifications of the contract. The initial term year expires December 31, 2026. Accordingly, the Public Works Department is requesting approval to exercise the first (1st) renewal option January 1 through December 31, 2027. The Public Works Department recommends that the Mayor and City Council approve the first (1st) optional renewal year of RFP No. 2025-0007, Right-of-Way Maintenance Services, with Crabapple Landscape Experts in an amount not to exceed $300,000.00, authorizing the associated budgetary actions, and extend the contract term through December 31, 2027. ATTACHMENTS: Exhibit 1: Completed Contract Renewal Evaluation Form Exhibit 2: Completed Budget Availability Certification Form Exhibit 3: Resolution (R25-1851) Exhibit 4: Contractual Agreement and Cost Proposal Funding Source: Account Number 100-42200-522000 (ROW Maintenance) in the Public Works budget. RIGHT OF WAY MAINTENANCE AMENDED COST PROPOSAL - RFP 2025-007 Annual Service for 12 Months of Weekly Service ROAD Campground Road (From State Route 42 to Peach Drive- Approximately 7,400 feet both ways to include three (3) medians) Davidson Parkway (From North Henry Boulevard to City Limit sign (through Old Atlanta Road); both east and west bound; approximately 1.2 miles both ways) East Atlanta Road (from Love Street to Valley Hill Road); both east (0.7 miles) and west bound (0.7 miles) Flippen Road (From North Henry Boulevard to City Limit sign; both north (2.5 miles) and south bound (2.5 miles) Hwy 138 West of I-75 (Flower Beds) Hwy 138 (From I-75 south entrance and exit ramps to City limit sign past Spivey Road; both east and west bound) Hudson Bridge Road (Medians) Hudson Bridge Road (From I-75 south entrance and exit ramps to City limit sign past Hudson Bridge Road Town Homes; both east and west bound) Jodeco Road (Bridge Area) Exit #222 on I-75 (From ENTRANCE ramp to EXIT ramp; both sides of the bridge) North Henry Boulevard (From Daniel Drive to Scott Boulevard; both east and west bound; approximately 3 miles both ways) Old Atlanta Road (From Flippen Road to Dead End (through Davidson Parkway); both north and south bound; approximately 2.2 miles both ways) LUMP SUM ANNUAL COSTS $ 28,207.60 $ 10,155.70 $ 16,245.00 $ 17,114.00 $ 1,715.70 $ 21,651.00 $ 1,935.00 $ 20,123.00 $ 6,692.00 $ 44,215.00 $ 17,947.00 Rock Quarry Road (From North Henry Boulevard to Eagles Landing Parkway; both north and south bound; approximately 2.5 miles both ways) Walt Stephens Road (from I-75 overpass to City Limit sign (through intersection of Blackhall Road & Speer Road); both east (0.75 miles) and west bound (0.75 miles) TOTAL Contractor: Crabapple Turf Management, Inc. dba Crabapple LandscapEXPERTS Date: 04/22/2026 Signature: N/A $ 11,039.00 $ 197,040.00 September 29, 2026 ✔ ✔ ✔ Decius T. Aaron Public Works Council consideration to approve the contract with Dianna Hunt & Associates, Inc. to provide acquisition services for approximately 52 parcels in connection with the Neighborhood Legacy Project right-of-way acquisitions in the amount of $140,400.00. Funding source is TSPLOST Account Number 335- 42500-541436. - Presented by: Decius Aaron and Jeremy Andrews. The Neighborhood Legacy Project will improve stormwater infrastructure and add sidewalks and widen roads where feasible. ✔ $140,400.00 ✔ The Neighborhood Legacy Project will improve stormwater infrastructure and add sidewalks and widen roads where feasible. Public Works staff recommends approval. P.O. Box 579 Rutledge, GA 30663 O: 770-266-0505 F: 800-927-1791 Customer Name / Address: CITY OF STOCKBRIDGE 4640 N HENRY BLVD STOCKBRIDGE, GA 30281 Item # 1 2 3 4 5 PROPOSAL Date: 9/21/2026 Job Name / Location: MERLE MANDERS CONFERENCE CENTER 111 DAVIS ROAD STOCKBRIDGE, GA 30281 Description Quantity Unit Unit Price MILL ASPHALTIC CONCRETE; 1 ½” DEPTH 4” RECYCLED ASPHALTIC CONC. PATCH -19.0 MM SUPERPAVE INCL. BITUMINOUS MATERIAL & H LIME 12.5 MM SUPERPAVE INCL. BITUMINOUS MATERIAL & H LIME BITUMINOUS TACK COAT @ 0.08 GAL/SQ.YD. STRIPING Total 8167 SY $ 2.00 $ 16,334.00 189 TN $ 155.00 $ 29,295.00 674 654 1 TN $ 118.00 GAL $ 5.00 LS $ 11,700.00 $ $ $ 79,532.00 3,270.00 11,700.00 Total $ 140,131.00 Barricade rental, sawing, striping & coring costs (if necessary) to be billed at East Coast Grading’s cost. All in place work to be accurately measured & invoiced accordingly. If required and at the Developer’s approval, extra equipment & materials as follows: All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. This proposal may be withdrawn if not accepted within 30 days. Our workers are fully covered by Workmen’s Compensation Insurance. ACCEPTED: The above prices, specifications, and conditions are satisfactory and are hereby accepted. CONFIRMED: East Coast Grading, Inc. Customer: Signature: Signature: Date of Acceptance: Date: 9/21/2026