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June 24, 2009Dear Friend,Thank you for taking the time to read my policy platform.I have traveled all over the city, seeking input from Atlantans about theissues they face every day. From East Atlanta restaurant owners to WestEnd seniors, the ideas they shared have sparked a dialogue that I hope tocontinue throughout this election and beyond.Pennsylvania Economy League states in its report entitled “StructuringHealthy Communities Part 1: Revenue Generation and Fiscal Health”analysis of revenue and related data shows a clear path of five stages thatmunicipalities follow toward fiscal distress:1.
Prosperity with low taxes
. New development increases the revenue base, with limited demand for services. Infrastructure is new and paidfor by developers. In this stage, revenues are increasing faster thanthe rate of inflation and faster than the cost of services.2.
Increasing demand for services and gradually rising tax rates and service fees.
The pace of new development has slowed, yet citizensdemand more services. Tax rates and fees are increasing, but therestill is a strong tax base. The rate of revenue growth is starting toslow.3.
Reductions in non-core services.
Tax base increases are minimal, yetdemand for services continues to grow. Taxes increase while non-coreservices are reduced.4.
Reductions in core services.
There is a mismatch between revenuesand expenditures that results in a tax structure that is non-competitive with some neighboring municipalities. Core services suchas public safety and infrastructure maintenance are reduced. Totalmunicipal revenues begin to decrease.5.
Loss of tax base and distress.
There is a noticeable decline in thenumber of households as residents begin to “vote with their feet.” The
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