PELHAM, Ga. (WALB) — The City of Pelham is delaying adoption of its next budget and will temporarily operate under the current fiscal year’s budget for one month, a move city leaders say is meant to give Interim City Manager Frank Etheridge more time to review the proposed spending plan.

The City Council approved the short-term measure at its regular meeting last week. Pelham Mayor James Eubanks said the budget process has involved months of discussion among council members, and Etheridge has only served as interim city manager for a couple of weeks.

Solid-waste rate increase expected for July 1

City leaders also expect council members to vote on a solid-waste price increase. Eubanks said the city’s contract allows the waste provider to raise rates, and the company has opted for a 4% increase, which he said is tied to fuel costs.

If approved, residential solid-waste rates would increase on July 1 from $22.72 to $23.79 per month, according to information provided during the budget discussions. (The city has not yet released the full rate schedule and contract language publicly; this story will be updated when documents are obtained.)

Records show SPLOST fund was owed money

As the city debates spending and rising utility costs, residents are calling for broader transparency.

In the city’s FY2025 draft financial statements, the SPLOST fund balance sheet shows the fund owed $72,135 from other city funds as of June 30, 2025.

The same document includes corrective-action language flagging concerns about SPLOST-related spending, noting that SPLOST proceeds are restricted to voter-approved purposes and recommending that the city document interfund advances and reimburse amounts owed to SPLOST on time.

Separately, through an open records request, residents say they obtained audit information indicating tens of thousands of dollars were moved from SPLOST funds and not replaced. Etheridge has acknowledged that the money has not been put back and said no projects were left undone as a result, according to residents who raised the issue.

2024 Fiscal Year Records:

What residents want

Residents calling for changes say they want clearer public access to key financial information — including line-item budgets, routine budget-to-actual updates, and a written policy on when and how restricted funds can be transferred or advanced between accounts.

City Manager responds:

I asked the City Manager, Frank Ethridge, the questions that citizens are asking.

1. What exactly does “SPLOST fund – due from other funds: $72,135” represent? Which funds owe it, and for what expenses?

I do not know what document you are working from, or if you just have someone’s notes. Note 7 of the Notes to the Financial Statements of the FY 2025 Audit lists three due to/due from items. The two items that are due to the SPLOST fund represent:

Due From: Water, Sanitation, Sewer, and Gas Fund $67,617

Due From: General Fund $ 2,518

$72,135

This represents only a small portion of the $1,400,293 that was moved between funds during the year to cover capital improvement projects. So, the largest portion of these transfers was replaced during the fiscal year.

These dollar amounts were identified by CKH CPA’s and Advisors, LLC, the City’s auditor. They did not provide an item-by-item breakdown of transactions, but identified the totals that were still due to another fund at the end of our Fiscal Year.

The third “due from/due to” was between WGS and the General Fund in the amount of $65,146. Council will likely consider forgiving this repayment from WGS to the General Fund, to keep the likely fee increases to a minimum.

1. Was this $72,135 the result of one transfer or multiple transactions? Over what dates?

The $72,135 represents multiple transactions that occurred between 7/1/2024 and 6/30/25.

1. Who authorized each transaction (title/name) and what was the approval process (email, finance form, council vote)?

The City Manager /directed these transactions. Most were through verbal communication with the fiancé staff. We have implemented a more formal requirement that any transfers must be on a fiancé form signed by the City Manager.

1. Is any of the $72,135 still outstanding? If yes, how much as of today? If no, when was it repaid – and show the entry. Yes, this is still outstanding.
2. Do you have a written repayment schedule or policy that governs when SPLOST gets reimbursed? If not, will you create one? By what date?

No, Pelham does not have a repayment schedule or a policy that governs when SPLOST gets reimbursed. At this point, we are discussing a repayment schedule as part of the FY 2027 budget workshops and approval process. I do not anticipate a formal policy being created, but rather see tighter controls over when SPLOST funds (restricted) can be used for short-term shortfalls in other funds (General Funds, WGS). I do expect any future proposed transfers to be in writing, providing details on why the transfer is being requested and how/when it will be repaid.

1. What should residents watch for next? What is the next public meeting/date where SPLOST balances and reimbursements will be discussed?

Our public hearings for the FY 2027 budget are on July 9th at noon and 6:30 pm, and on July 16th at 6:00 pm. All the meetings will be at City Hall at 108 Hand Avenue, Pelham. While the reimbursement of these “due to” amounts will not be a specific topic, their impact on the budget will be discussed.

2025 Fiscal Year Records:

This story will be updated as records are received and as the council votes.

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