SUGAR HILL — For the 11th consecutive year, the city of Sugar Hill has earned a clean financial audit, reinforcing its reputation for strong fiscal management and transparency.

At the July 14 city council meeting, representatives from Mauldin & Jenkins, CPAs & Advisors, presented the FY2024 Annual Financial Report. The city once again received an “unmodified” opinion commonly referred to as a clean audit, which confirms that Sugar Hill’s financial records are accurate, complete and in full compliance with governmental accounting standards.

The report has been submitted to the Georgia Department of Audits and Accounts, a requirement for maintaining eligibility for state grants such as the Local Maintenance and Improvement Grant, which funds infrastructure improvements like road paving.

A culture of accountability

According to Mayor Brandon Hembree, Sugar Hill’s consistent audit success is no accident; it’s the result of intentional leadership and a city-wide commitment to accountability.

“With the help of an outstanding City Manager, we have created a culture that values accountability,” Hembree said. “When the auditor visits City Hall, everybody from every department is involved from the top down.”

That culture has been especially important in overcoming past financial challenges. When Hembree joined the City Council in 2014, along with then-Mayor Steve Edwards, the city had failed to complete or submit three years’ worth of audits, leaving it ineligible for critical state funding.

“Over a two-year period, we worked hard and caught up on all our financial audits and required state agency financial reports,” Hembree said. “We continue to make that an annual priority.”

Record reserves and strategic planning

Sugar Hill’s fiscal policy requires a reserve of at least 20% of the general fund, but the city has far surpassed that benchmark, reporting reserves equal to 110% of the fund in FY2024.

“These reserves help ensure that governments can weather natural disasters and economic shifts,” Hembree said. “With uncertainty in global markets and climate patterns, I’m pleased that we’re being safe and protective of our reserve funds.”

Those reserves also serve a legal purpose. Hembree pointed to the recent $35 million court verdict in the Chang v. City of Milton case, which is still under review by the Georgia Supreme Court, as a reminder of the financial risks municipalities face.

Transparency in practice

Beyond meeting legal requirements, Sugar Hill goes a step further in ensuring financial decisions are open to the public. Though not required by law to formally adopt the annual audit, the city chooses to do so during public meetings.

“This choice is, first and foremost, about transparency,” Hembree said. “It’s easy to say on social media that a city is mismanaging money, but a third-party audit from one of the most respected firms in Georgia tells a different story.”

Smart growth, strong balance

Sugar Hill’s strong financial footing is helping to fuel continued development without overburdening residents. The city has seen $750 million in private investment in its downtown over the past decade, much of it anchored by public projects including the E Center, Eagle Theatre, The Bowl and the Sugar Hill Greenway.

“Our tax digest used to be 92 percent residential,” Hembree noted. “Now we’re at 79 percent residential and 21 percent commercial. That healthier balance more fairly distributes the tax burden and strengthens our long-term fiscal health.”

Grants, parks and future planning

Maintaining compliance with audit requirements opens doors to a wide range of state funding. In addition to LMIG funds, which help repave neighborhood roads, Sugar Hill is exploring grants through the Georgia Outdoor Stewardship Program and hazard mitigation sources to support projects like the Sugar Hill Riverlands, Orrs Ferry, Crayfish Creek and streambank restoration at Gary Pirkle Park.

The city has also adopted a clear new policy for billing and collecting property taxes. Sugar Hill currently holds a strong AA+ bond rating from Standard & Poor’s and continues to make bond payments without raising taxes. In fact, the city has rolled back its millage rate for the past two years and expanded homestead exemptions for homeowners and seniors.

“Planning is in our DNA,” Hembree said. “It’s what led to our vibrant downtown. Now we’re engaging the public in planning two new parks, including an inclusive park for children of all abilities, and a Champion Tree Park.”

A team effort with long-term vision

The mayor credited the city’s staff and management team for their role in sustaining fiscal excellence.

“We have remarkably low turnover on the Sugar Hill team, and I think this helps build internal relationships that foster collaboration and accountability,” he said. “They take pride in the assets they manage or work on every day.”

As for the future, Hembree remains optimistic and grounded.

“Growth is inevitable, so it’s our responsibility to shape it rather than be shaped by it,” he said. “The city’s financial future is strong.”

And on a personal level?

“It means that I have contributed to helping create and sustain an environment where excellence matters,” Hembree said. “Good leaders let other good leaders lead.”