The City's 2025 Financial Report Is Out. Here Are 10 Questions Every Fairburn Taxpayer Should Be Asking.

By Dr. Samantha L. Hudson

The City of Fairburn recently released its 2025 Annual Comprehensive Financial Report (ACFR)—a document intended to provide residents with a snapshot of the City's financial condition. The report received an unmodified ("clean") audit opinion, but that should not end the conversation.

A clean audit means the financial statements were fairly presented under accounting standards. It does not mean there were no questionable financial decisions, procurement concerns, internal control weaknesses, or opportunities for better transparency. Those issues often require deeper public review beyond the audit itself.

After reviewing the report, here are the biggest financial red flags that deserve public attention.

🚩 1. Nearly $10 Million Left the General Fund

The City's General Fund balance dropped by $9.88 million in one fiscal year.

According to the report:

• $7.87 million was transferred to other funds, primarily for capital projects.

• Another $2.09 million resulted from expenditures exceeding revenues.

Residents deserve a complete accounting of where those dollars went and whether every transfer complied with budget approvals and applicable law.

🚩 2. Fairburn's Financial Position Moved Backward

Just one year ago, the City reported an $8.6 million increase in net position.

This year?

The City's overall financial position declined by approximately $668,000. 

That's a significant reversal and deserves an explanation.

🚩 3. Long-Term Debt More Than Doubled

One of the most striking changes is the increase in long-term liabilities.

The City's long-term obligations grew from approximately $26.9 million to more than $63.5 million in just one year. The report references new bond financing, including approximately $16.6 million for Water & Sewer improvements.

Taxpayers should ask:

• What projects required this borrowing?

• How will the debt be repaid?

• Will utility customers ultimately shoulder the cost through higher rates?

🚩 4. The Electric Utility Lost Ground

The Electric Fund experienced a significant operating loss despite recent rate increases.

Management attributes the decline to higher wholesale power costs, increased wages, and rising insurance expenses.

If operating costs continue to outpace revenues, residents should know whether additional rate increases are on the horizon.

🚩 5. No Finance Director During a Critical Financial Year

The report identifies the Finance Director position as vacant.

At a time when the City was managing major capital projects, issuing new debt, overseeing utility operations, and administering public funds, taxpayers have every right to ask who was providing day-to-day financial oversight.

🚩 6. Heavy Reliance on Interfund Transfers

The report reflects millions of dollars moving between City funds.

Interfund transfers are legal and common—but transparency is essential.

Residents should be able to clearly see:

• where the money originated,

• where it was transferred,

• why it was transferred,

• and the legal authority supporting each transfer.

🚩 7. Spending Continues to Rise

Government-wide expenses increased substantially, particularly in Public Safety, where costs rose by approximately 26% due to wages, benefits, and operating expenses.

Every investment in public safety matters—but taxpayers also deserve to understand how these increases will affect future budgets.

🚩 8. Major Capital Projects Require Major Transparency

The report highlights millions invested in roads, sidewalks, pedestrian improvements, and other infrastructure projects.

That naturally leads to important questions:

• Were all contracts competitively bid?

• Were change orders properly approved?

• Were projects completed within budget?

• Can residents easily review the procurement records?

Transparency doesn't stop once construction begins.

🚩 9. Debt and Utility Costs Are Closely Connected

As borrowing increases, residents should closely monitor future utility bills.

Debt service, infrastructure investment, and operational expenses often influence future rate decisions. Understanding that connection today helps avoid surprises tomorrow.

🚩 10. Transparency Doesn't End With the Audit

Perhaps the biggest takeaway is this:

A clean audit is not a clean bill of health for every aspect of government operations.

Auditors generally do not investigate every procurement decision, every grant expenditure, every contract award, or every policy decision. Those responsibilities belong to elected officials, oversight bodies, and an informed public.

The Bottom Line

Fairburn residents should never apologize for asking questions about how their tax dollars are being spent.

• Good government welcomes scrutiny.

• Strong leadership embraces transparency.

• Public trust is built when government not only follows the law but also openly explains its decisions.

  The questions above aren't accusations—they're the questions every informed taxpayer should be asking. Accountability isn't political. It's the foundation of responsible government.

In Service,

Dr. Samanntha Hudson, DPA, MSW