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Brookhaven Budget Q&A What is the proposed budget for FY13? The proposed budget is $16.

465 million. This budget is a work in progress and subject to change depending on the DeKalb County tax digest. What does the budget include? The budget includes operating expenses for the city, including administration, police, community development, parks and recreation, public works, legal and other city services. This includes funding to establish Brookhaven’s own police department. What is the proposed millage rate? The maximum millage rate permitted under Brookhaven’s charter is 3.35 mills. This rate is being used as a starting point until mid-year budget adjustments are made, which likely will occur in July. During these summer budget adjustments, the Mayor and Council will set a lower millage rate. Will Brookhaven residents see a tax increase? The Brookhaven city charter caps the city millage rate at 3.35 mills. Brookhaven will not raise taxes above this cap. At the time when the legislature approved this capped millage rate and during the city referendum campaign, this rate represented a number that gave a small tax cut or maintained the current tax levels for most Brookhaven taxpayers, even franchise fees. However, just days before the city referendum, the DeKalb County CEO reduced the level of revenue that goes to city residents, effectively raising taxes on city residents. DeKalb removed money intended only for police services and moved it to the county’s general fund, which ultimately impacted the amount of revenue coming to all cities in DeKalb. At the time, all nine cities in DeKalb – regardless of location, demographics or political makeup – objected to the county’s manipulation of the budget numbers and signed a joint letter protesting this move by the county, which effectively raised taxes on only city residents. Additionally, the DeKalb County school board has raised its tax rate by 1 mill and the county increased water rates by nearly 13 percent this year. Brookhaven does not control either of these rates. Is what DeKalb County did legal? Ga. Rep. Mike Jacobs (R-Brookhaven) has sent a letter to Attorney General Sam Olens, requesting a legal opinion on DeKalb County’s ability to raise the millage rate beyond the rollback rate without holding public hearings as required by state law. See attached letter. When will Brookhaven set the millage rate?

March 25, 2013

The city will finalize the millage rate by July after receiving the tax digest and other revenue figures, including the HOST sales tax credit, from DeKalb County. What factors are impacting this budget? As expected, the city’s revenue for this first year budget will be less than future years because the city is not drawing from a full year of revenue. Brookhaven’s budget also is contingent on receiving franchise fees and DeKalb County setting the tax rate, HOST rate, tax digest and property assessment. Brookhaven will not learn these final revenue numbers until the summer, and therefore will not know how far below the capped millage rate that the city can set its tax rate. What are Brookhaven’s sources of revenue? The majority of the city’s revenue is contingent on the county tax digest. Some of the major revenue sources include:       real property tax personal property tax HOST sales tax business and occupation tax motor vehicle tax franchise fees

For more information, visit www.brookhavenga.gov.

### Media Contact: Megan Matteucci Office: 404-637-0506 Cell: 770-828-5932 megan.matteucci@brookhavenga.gov

March 25, 2013