You are on page 1of 66

RevenueandExpenditure

Estimatesfor aProposedCityof Brookhaven


November 2011

TableofContents
Introduction............................................................................................................................. 1
I. Revenues............................................................................................................................ 3
II. Expenditures.................................................................................................................... 17
AppendixA StudyAreaMap..............................................................................................32
AppendixB TownBrookhavenDevelopment....................................................................33
AppendixC MiscellaneousRevenues.................................................................................37
AppendixD UnincorporatedCountyRevenueFiguresandDataSources........................40
AppendixE HotelsintheStudyArea................................................................................42
AppendixF HOSTCalculationsandCountyCertificationLetter........................................43
AppendixG CDBGDataTables..........................................................................................50
AppendixH ParksData...................................................................................................... 55
AppendixI CapitalDataTables.........................................................................................57
1

Introduction
In }une of State Repiesentative Nike }acobs anu Citizens foi Noith BeKalb Inc
heieinaftei CNB engageu the Cail vinson Institute of uoveinment to stuuy an aiea
within unincoipoiateu BeKalb County in oiuei to aiu theii consiueiation of the aieas
possible incoipoiation Biookhaven oi the stuuy aiea as it is iefeiieu to in this iepoit is
compiiseu of squaie miles

anu is situateu in noithwest BeKalb County The stuuy


aiea is boiueieu on the west by the cities of Atlanta anu Sanuy Spiings along the Fulton anu
BeKalb County line on the noith by I which is the southein boiuei of the City of
Bunwoouy on the east by the City of Chamblee anu to the south by a poition of I See
AppendixAforamapofthestudyarea The aiea is home to 0glethoipe 0niveisity a piivate
libeial aits univeisity founueu in which houses some of the public iecoius of the
foimei municipal coipoiation known as the village of Noith Atlanta which existeu fiom
to anu incluueu much of the teiiitoiy incluueu in the stuuy aiea


This iepoit pioviues estimates of ievenues anu expenuituies a potential City of
Biookhaven if incoipoiateu coulu anticipate in pioviuing ceitain municipal seivices foi a
single fiscal yeai The ievenue estimates aie piimaiily baseu upon actual ievenues
collecteu foi the unincoipoiateu aiea by BeKalb County in fiscal yeai FY as well as
piojections foi fianchise fees the Bomesteau 0ption Sales Tax anu the Community
Bevelopment Block uiant Expenuituie estimates aie piimaiily baseu on costs foi seivices
in the cities of Bunwoouy anu }ohns Cieek Foi estimates ielateu to police costs
expenuituies fiom the City of Smyina weie also useu Foi an estimate on an aspiiational
level of paik maintenance expenuituies fiom the City of Roswell weie useu Foi each city
that was useu to establish costs estimates CvI0u faculty examineu its buuget uocuments
anu conuucteu inteiviews with city staff to inquiie as to the piopei allocation of ceitain
costs anu to claiify figuies anu line items iepoiteu in theii buugets
The cities of }ohns Cieek anu Bunwoouy weie selecteu at the outset of the stuuy to
be useu as the piimaiy compaiisons foi expenuituie puiposes Both cities aie similai in

As ueteimineu by the Cail vinson Institutes Bivision of Infoimation Technology anu 0utieach Seivices
thiough uIS mapping

See ua Law p
2

size to the stuuy aiea anu both aie locateu in noithein metiopolitan Atlanta In auuition
both cities aie new Bunwoouy was incoipoiateu on Becembei anu }ohns Cieek on
Becembei

Each of these cities follows a piivatization mouel that aims to minimize


the numbei of fulltime staff employeu uiiectly by the city anu to contiact with outsiue
piivate sectoi pioviueis to pioviue seivices The fiscal yeais of anu weie useu
fiom each city to estimate costs because they constituteu the best available uata uuiing the
time the stuuy was conuucteu Foi most of that time the City of }ohns Cieek contiacteu
with one piivate sectoi contiactoi to pioviue the bulk of its seivices while Bunwoouy
contiacteu with thiee pioviueis Both cities have moie iecently subuiviueu anu iebiu theii
seivice contiacts to multiple piivate sectoi pioviueis It was assumeu that a new city
woulu follow a similai pattein of outsouicing city seivices to piivate contiactois An
impoitant point to note about cities that follow this type of mouel is that significant
poitions of capital costs that woulu be attiibutable to a citys capital buuget aie boine by
the contiactois In othei woius costs that might otheiwise be attiibutable to a citys capital
buuget aie being spent in opeiations as the contiactois aie iequiieu to use theii vehicles
anu othei capital equipment to peifoim the seivice
Estimates given in this iepoit aie baseu on tax levies anu seivice levels foi a city not
yet cieateu anu thus they shoulu not be vieweu as ceitainties While it is oui hope that
this iepoit assists with the public consiueiation of a potential municipal incoipoiation it
shoulu not be constiueu to constitute a position eithei foi oi against the establishment of a
City of Biookhaven by the Cail vinson Institute of uoveinment CvI0u

3
See ua Law p ua Law p .
3

I. Revenues
The ievenue estimates outlineu below incluue all majoi ievenue souices a city
incluuing the stuuy aiea woulu have collecteu hau it existeu in anu assesseu taxes anu
fees at iates similai to BeKalb County in that same yeai In calculating these estimates we
applieu metiics useu in piioi ieseaich that weie accepteu by stakeholueis in some of the
most iecent incoipoiation stuuies Thus this iepoit uses similai ievenue estimation
methouologies as those pioviueu in both ueoigia State 0niveisitys iepoit TheFiscal
Impact on DeKalb County with Possible Incorporation of Dunwoody, Georgia anu the Cail
vinson Institutes iepoit Revenue and Expenditure Analysis of a Proposed City of
Dunwoody to the extent possible The methou foi ueteimining how much ievenue was
assigneu as coming fiom the stuuy aiea is uesciibeu in Table 0ne factoi woithy of note is
that the uata useu to geneiate ievenue estimations uiu not incluue the value of the iecent
Town Biookhaven uevelopment on Peachtiee Roau in the stuuy aiea because the
piopeity is cuiiently owneu by the BeKalb Bevelopment Authoiity Thus the uevelopment
was not counteu as pait of the commeicial base of the stuuy aiea in calculating the
commeicial iatio useu to estimate numeious ievenues oi in the estimation of piopeity
taxes SeeAppendixBforfurtherexplanation
Table1:StudyAreaRevenueEstimates
RevenueSource DataSource Amount
0ccupation Taxes
Ratio of assesseu value of commeicial
piopeity in stuuy aiea to BeKalb
unincoipoiateu aiea
Beveiage Excise Taxes
Ratio of assesseu value of commeicial
piopeity in stuuy aiea to BeKalb
unincoipoiateu aiea
Peisonal Piopeity Taxes
Ratio of assesseu value of commeicial
piopeity in stuuy aiea to BeKalb
unincoipoiateu aiea
BotelNotel Taxes
Ratio of assesseu value of commeicial
piopeity in stuuy aiea to BeKalb
unincoipoiateu aiea
4

BotelNotel Taxes
iestiicteu to touiism
Ratio of assesseu value of commeicial
piopeity in stuuy aiea to BeKalb
unincoipoiateu aiea
Business License Police
Ratio of assesseu value of commeicial
piopeity in stuuy aiea to BeKalb
unincoipoiateu aiea
Business LicenseBeveiages
Ratio of assesseu value of commeicial
piopeity in stuuy aiea to BeKalb
unincoipoiateu aiea
Bank Shaies Taxes
Ratio of assesseu value of commeicial
piopeity in stuuy aiea to BeKalb
unincoipoiateu aiea
Intangible
Ratio of assesseu value of iesiuential
commeicial piopeity in stuuy aiea to
unincoipoiateu aiea
Bevelopment Funu
Ratio of assesseu value of iesiuential
commeicial piopeity in stuuy aiea to
unincoipoiateu aiea
Zoning anu vaiiance Fees
anu Peimits
Ratio of assesseu value of iesiuential
commeicial piopeity in stuuy aiea to
unincoipoiateu aiea
Insuiance Piemiums
Ratio of population in stuuy aiea to
BeKalb unincoipoiateu aiea
Fines Foifeituies
Ratio of population in stuuy aiea to
BeKalb unincoipoiateu aiea
Stoim Watei Funu
Ratio of population in stuuy aiea to
BeKalb unincoipoiateu aiea
Notoi vehicles Taxes
Ratio of population in stuuy aiea to
BeKalb unincoipoiateu aiea
Law Enfoicement
Confiscateu Nonies Funu
Ratio of population in stuuy aiea to
BeKalb unincoipoiateu aiea
Paiking anu Rental
Ratio of population in stuuy aiea to
BeKalb unincoipoiateu aiea
Sale of Piinteu Nateiial
Police
Ratio of population in stuuy aiea to
BeKalb unincoipoiateu aiea
5

Bomesteau 0ption Sales


Taxes iestiicteu to capital
Calculation puisuant to 0CuA

State uiantCommunity
Bevelopment Block uiant
Aveiage ievenue fiom ueoigia cities
population iange between
fiom
Niscellaneous
This iepiesents a numbei of small
ievenue souices SeeAppendixC.
Fianchise Fees Cable
Ratio of population in stuuy aiea to
BeKalb unincoipoiateu aiea
Fianchise Fees Electiic
Estimate fiom ueoigia Powei foi the
zip coue applieu pei capita
Fianchise Fees Natuial uas Aujusteu Estimate fiom Atlanta uas Light
Fianchise Fees Phone
Aveiage of pei capita ievenue fiom
ievenues ieceiveu by }ohns Cieek anu
Bunwoouy
Relies on FY uata unless otheiwise inuicateuSeeAppendixDforcountyrevenuedatadetail.
Real
Piopeity
Taxes
Nillage Rate

Tax
Commissionei
Bigest
Real
Piopeity
Taxes
Nillage
Rate
Tax
Commissionei
Pieliminaiy
Bigest
Real
Piopeity
Taxes
Penalties
Ratio of
special
uistiict
piopeity
taxes to
oveiall
piopeity
taxes in stuuy
aiea applieu
against
penalties anu
inteiest paiu
on oveiall
taxes in stuuy
aiea
Real
Piopeity
Taxes
Penalties
Ratio of
special
uistiict
piopeity
taxes to
oveiall
piopeity
taxes in stuuy
aiea applieu
against
penalties anu
inteiest paiu
on oveiall
taxes in stuuy
aiea
TotalRevenueEstimate $23,810,619 $28,528,983
6

A Nethouologies 0tilizing Ratios of Assesseu Real Piopeity value


A numbei of taxes cuiiently collecteu in the unincoipoiateu aiea of BeKalb County aie
geneiateu solely by commeicial activity In oiuei to obtain estimates of how much ievenue
woulu be geneiateu by these taxes a compaiison was maue between the assesseu value of
commeicial piopeity in the stuuy aiea anu the unincoipoiateu aiea of the county
Assuming that the iatio of commeicial ieal piopeity value is a pioxy foi commeicial
activity this iatio was applieu against actual collections foi seveial ievenue souices
which aie uesciibeu below Actual county ievenues useu to tabulate the uiffeient ievenue
estimations weie pioviueu by BeKalb County ievenues collecteu thiough Becembei
Appiaiseu values foi the ieal piopeity in the stuuy aiea weie pioviueu by the
BeKalb Tax Commissionei anu the tax uigest values foi the countys unincoipoiateu aiea
weie pioviueu by the ueoigia Bepaitment of Revenue To ueteimine ievenue fiom taxes on
public utilities the iatio of the assesseu value of utility piopeity in the stuuy aiea to the
assesseu value of utility piopeity in the unincoipoiateu aiea was useu anu foi heavy
equipment taxes the same appioach was taken utilizing the iatio foi inuustiial piopeity
Table illustiates the iatios of iesiuential commeicial inuustiial utility anu total assesseu
piopeity value of the stuuy aiea to the unincoipoiateu aiea in BeKalb County
Table2:2010PropertyValuesinStudyAreaandUnincorporatedDeKalb
StudyArea Unincorporated
DeKalbCounty
PercentStudy
Areato
Unincorporated
Av Resiuential Piop
Av Commeicial Piop
Av Com Res
Av Inuustiial Piop
Av 0tility Piop
Total Assesseu value

7

0ccupation Taxes
0ccupation taxes aie levieu on peisons anu entities engageu in occupations oi tiaues foi
piofitmaking puiposes BeKalb County levies an occupation tax in the unincoipoiateu
aiea
Alcoholic Beveiage Excise Taxes
Alcoholic beveiage excise taxes aie collecteu on inuiviuual ietail sales of alcoholic
beveiages
Peisonal Piopeity Taxes
Peisonal piopeity taxes aie levieu on peisonal piopeity owneu by commeicial businesses
BotelNotel Taxes
Botelmotel taxes aie collecteu baseu on a peicentage of the nightly ioom iate chaigeu by
hotels within the juiisuiction of a city oi county that levies the tax BeKalb County levies a
tax of of the nightly ioom iate Puisuant to state law howevei only the ievenue
geneiateu by a tax may be spent foi geneial funu puiposes the iemaining ievenue
must be spent on activities piomoting touiism geneially by contiact with a nonpiofit
Thus some of the funus iuentifieu in the table aie iestiicteu to this puipose CNB veiifieu
the piesence of at least hotels in the stuuy aiea ThesearelistedinAppendixE
Alcoholic Beveiage Licenses
In oiuei to sell alcoholic beveiages in ueoigia a piopiietoi must have both a local anu state
license to sell eithei in packages oi by the uiink Local licenses aie ieneweu annually anu
each yeais ienewal is accompanieu by payment of a fee
Business LicensesPolice
This line item iepiesents fees geneiateu by backgiounu checks that aie iequiieu to obtain
licenses foi vaiious locallyiegulateu activities eg alcoholic beveiage pouiing peimits
8

taxicab licenses etc Auueu to this figuie is the anticipateu peimit ievenue fiom auult
oiienteu businesses
Bank Shaies Taxes
Cities anu counties aie peimitteu to levy a tax on uepositoiy financial institutions having
offices locateu in theii iespective juiisuictions
Intangible Taxes
Intangible taxes iecoiuing taxes aie collecteu on piopeity that is solu at the time its ueeu
is iecoiueu This numbei was obtaineu by applying the iatio of the assesseu value of
commeicial anu iesiuential piopeity in the stuuy aiea to the assesseu value of the
commeicial anu iesiuential piopeity in the unincoipoiateu special tax uistiict against the
amount of ievenue collecteu by the county in the unincoipoiateu aiea
Bevelopment Funu
This amount iepiesents fees chaigeu foi peimits ielateu to uevelopment eg plumbing
electiical BvAC anu builuing inspections
Zoning anu vaiiance Fees anu Peimits
This figuie iepiesents fees chaigeu of applicants foi zoning changes anu vaiiances This
figuie was obtaineu by applying the iatio of assesseu value of commeicial anu iesiuential
piopeity in the stuuy aiea to the unincoipoiateu aiea against the ievenue geneiateu by
these activities in the unincoipoiateu aiea
B Nethouologies 0tilizing Ratios of Population of the Stuuy Aiea to the
0nincoipoiateu Aiea
A numbei of ievenue souices uepenu moie uiiectly upon the numbei of inuiviuuals
engaging in ceitain behaviois such as the puichase of insuiance watching cable television
owning a cai anu committing tiaffic offenses Foi these ievenue souices assumptions
weie maue that these behaviois aie faiily constant acioss the unincoipoiateu population
of BeKalb County anu thus the iatio of the population of the stuuy aiea to the entiie
9

unincoipoiateu aiea was applieu to the actual ievenues Table gives the population
figuies foi the stuuy aiea anu unincoipoiateu BeKalb County
Table3:2010PopulationFiguresforStudyAreaandUnincorporatedDeKalb
StudyArea Unincorporated
DeKalbCounty
PercentStudy
Areato
Unincorporated
Population
Neuian Bouseholu
Income

Poveity Rate
Population figuies foi the stuuy aiea weie supplieu by the ueoigia ueneial Assembly 0ffice of Congiessional
anu Legislative Reappoitionment othei figuies foi populations meuian householu income anu poveity iate
came fiom the Census anu the Ameiican Community Suivey estimates utilizing Blocks
anu Blockgioups that appioximateu the stuuy aiea foi ACS uata
Insuiance Piemiums Tax
Insuiance piemiums taxes aie collecteu on policies wiitten foi both piopeity anu casualty
anu life insuiance policies puichaseu by those insuieu within the juiisuiction of a city oi
unincoipoiateu aieas of a county The figuie given above is baseu on the iatio of the
population of the stuuy aiea to the population of the unincoipoiateu aiea
Fines anu Foifeituies
Tiaffic offenses anu ceitain misuemeanoi offenses may be aujuuicateu in county level
iecoiueis anu city level municipal couits anu fine ievenue fiom these offenses is
ietaineu by the local goveinment with juiisuiction An assumption was maue that iates of
petty offenses of this natuie take place on a faiily consistent level acioss unincoipoiateu
BeKalb anu the population iatio was applieu to actual ievenue
Stoim Watei Fee
BeKalb County collects a stoim watei utility fee in oiuei to uefiay the costs associateu with
infiastiuctuie to hanule stoim watei iunoff The fees imposeu aie uesigneu to be
piopoitionate to the amount of iunoff cieateu by impeivious suifaces The iates
chaigeu by BeKalb County weie pei single family iesiuential uwelling annually
10

Nultiple uwelling units aie each chaigeu half of that iate annually anu all othei impioveu
piopeities aie chaigeu at a iate of pei squaie feet of impeivious suiface As the
amount of impeivious suiface in the stuuy aiea is unknown at this time as well as the
actual collections fiom the stuuy aiea the population iatio was useu heie as a iough
appioximation of uevelopment anu consequently ieflective of the amount of impeivious
suiface Because stoim watei utilities opeiate as an enteipiise funu anu because the fees
collecteu must be useu foi stoim watei utility puiposes this figuie was also useu to
calculate expenuituies
Notoi vehicles
Notoi vehicles aie subject to an au valoiem tax levieu on theii assesseu value The figuie
above is ueiiveu by applying the population iatio anu assumes cai owneiship is consistent
acioss the unincoipoiateu aiea
Law Enfoicement Confiscateu Nonies Funu
This funu iepiesents ievenues ieceiveu fiom money confiscateu in uiug cases An
assumption was maue that police seizuie of money fiom illegal uiug tiafficking woulu be
piopoitionate to population
Paiking anu Rental
This figuie is ueiiveu fiom miscellaneous ievenues collecteu in the unincoipoiateu aiea
fiom a vaiiety of minoi ievenue souices likes paiking anu iental fees that a city might
expect to similaily collect ovei time
Sale of Piinteu NateiialPolice
Police uepaitments aie able to chaige fees foi copies of police iepoits inciuent iepoits
motoi vehicle acciuent iepoits anu othei miscellaneous mateiials It is assumeu that theie
woulu be some uemanu foi the same types of uocuments fiom a municipality
C Bomesteau 0ption Sales Tax iestiicteu to capital
The Bomesteau 0ption Sales tax is a one cent countywiue sales tax oiiginally
enacteu to pioviue foi county piopeity tax iollback that is levieu on the sales of most
11

goous It has been amenueu ovei time to allow up to twenty peicent of its pioceeus to be
spent on capital neeus anu to pioviue that newly incoipoiateu cities ieceive a poition of
the pioceeus fiom the countywiue levy to use foi theii capital neeus A veiy specific
foimula founu in 0CuA pioviues foi the calculation of the amount to be
uistiibuteu to a new municipality baseu on both the level of funus to be spent in a given
yeai on capital as ueteimineu by the county anu the ielative size of the iesiuential
homesteau ieal piopeity tax uigests of the applicable local goveinments The intent behinu
the statutoiy changes that allow cities in BeKalb County to ieceive uistiibutions seems to
ieflect a uesiie to equalize the benefit of the tax iollback to municipal taxpayeis that pay
piopeity taxes to cities insteau of the county foi ceitain seivices Thus the equalization
payments maue to cities unuei the statute aie piopoitional to the size of the citys
iesiuential homesteau uigest
To aiiive at a moie accuiate appioximation of a yeais woith of B0ST uistiibutions
to a city compiiseu of the stuuy aiea the aveiage was taken of two calculations Because
theie aie seveial vaiiables involveu in the B0ST foimula anu because sales tax ievenues
aie subject to vaiiations causeu by economic uptuins anu uowntuins oveiall pioceeus
fiom two tax yeais weie useu to calculate likely uistiibutions to a city compiiseu of the
stuuy aiea The pioceeus of the B0ST tax weie appioximately anu the
pioceeus weie appioximately
Anothei vaiiant in the B0ST pioceeus calculation is the capital factoi set by the
county which ueteimines the amount of the oveiall pioceeus that can be spent by the
county on capital neeus 0sing the most iecent B0ST ceitification fiom the BeKalb Tax
Commissionei to establish the total homesteau uigest foi the county anu each qualifieu
municipality a calculation of the B0ST pioceeus amount applieu against a capital
factoi of scenaiio was aveiageu with a calculation of pioceeus applieu against a
capital factoi scenaiio The homesteau tax uigest foi the stuuy aiea was calculateu
baseu on tax infoimation pioviueu by the BeKalb Tax Commissioneis 0ffice CvI0u
calculateu the total amount of uistiibutions likely uue to all qualifieu municipalities to
ueteimine the total amount of equalization payments to ueuuct fiom the excess capital
pioceeus in scenaiio Appendix F contains these two separate calculations using the
12

spreadsheetutilizedbytheGeorgiaDepartmentofRevenueaswellasthemostrecentcounty
certificationletter.
It shoulu be noteu that uistiibutions aie maue fiom the pievious yeais tax
collections so a new city woulu have to wait to begin collecting this uistiibution Piioi to
the issuance of the iepoit but aftei the issuance by the county of its most iecent
ceitification lettei iequiieu by 0CuA the ueoigia Attoiney ueneial hau
instiucteu the ueoigia Bepaitment of Revenue to use the maintenance anu opeiations tax
uigest insteau of the bonu tax uigest This accounts foi some of the uiffeiences between the
statements maue in the countys ceitification lettei anu the figuies useu in the
calculations


B Community Bevelopment Block uiant
Community Bevelopment Block uiants CBBu aie awaiueu by the feueial anu state
goveinments to local goveinments meeting ceitain ciiteiia To obtain an estimate foi what
a city compiiseu of the stuuy aiea might expect to ieceive fiom such giants five yeais of
awaius foi uiffeient ueoigia cities ianging in population fiom appioximately to
weie aveiageu into a pei capita amount aujusteu foi inflation anu applieu against
the population of the stuuy aiea uiants foi the City of Albany weie not incluueu in the final
calculation because the giant amounts weie so laige in compaiison to the othei iecipients
that it appeaieu to be a statistical anomaly It is also woithy of note that neithei Bunwoouy
noi }ohns Cieek has ieceiveu any CBBu funus since theii incoipoiation Both the fact that
the cities aie new anu that they both have low poveity iates piobably contiibute to this
Because the poveity iate in the stuuy aiea is gieatei than that of these two compaiison
cities makes it moie likely that it coulu be a CBBu iecipient at some point in the futuie


ThedatausedforthesecalculationsisshowninAppendixG.

4
At the time of issuance of the iepoit the ueoigia Bepaitment of Revenue was seeking claiification as to
whethei to use the entiie county homesteau tax uigest oi the total municipal homesteau tax uigest as the
piopei uenominatoi in the step calculation applicable in instances when the capital pioceeus uo not
geneiate enough foi all the cities to be paiu an equalization payment Because the statute utilizes the teim
municipality the total maintenance anu opeiations homesteau tax uigest foi all municipalities anu the stuuy
aiea was useu as the uenominatoi in oui calculations 0sing the county total uigest in this scenaiio woulu
ieuuce the municipal uistiibutions

Foi moie infoimation on CBBu ciiteiia see httppoitalhuugovhuupoitalB0Bsicpiogiam


officescomm planningcommunityuevelopmentpiogiams
13

E Fianchise Fees

Some ievenue souices aie unique to municipal coipoiations in ueoigia Fianchise
fees aie essentially iental compensation by a piivate utility company foi use of a citys
public iightsofway Foi estimating the electiic natuial gas anu telephone fianchise fees
the authois consulteu with the piivate iegulateu utilities foi assistance in estimating the
likely ievenues
Fianchise Fees Cable
Feueial anu state law allows cities anu counties to entei into fianchise agieements with
cable companies to compensate the local goveinment foi theii use of the public iightsof
way These fees aie usually of the ievenue ueiiveu fiom cable television seivices
Assuming cable television vieweiship is consistent acioss the unincoipoiateu aiea the
iatio of the population of the stuuy aiea to the unincoipoiateu aiea applieu against the
actual cable fianchise fee ievenues iesults in the figuie above
Fianchise Fees Electiic
Fianchise fees foi electiic utilities aie the iesult of contiacts between municipal
coipoiations anu electiic utility pioviueis that occupy a citys iightofway These
agieements typically pioviue that of the gioss sales of electiic powei within a citys
limits less sales taxes anu fuel costs be paiu annually to the city to compensate the city foi
use anu occupancy of public piopeity The sole electiic utility pioviuei in the stuuy aiea is
ueoigia Powei Puisuant to iecent iulings by the ueoigia Public Seivice Commission half
of the annual fianchise fee paiu by ueoigia Powei to municipal coipoiations is collecteu
fiom the iate base of all ueoigia Powei customeis statewiue as a cost of uoing business
anu the othei half is collecteu as a fee solely on the electiic bills of customeis within the
municipality collecting the fee Thus collection of the electiic fianchise fee woulu iesult in
an inciease of less than in the electiic bills of city customeis
ueoigia Poweis account iecoius aie oiganizeu by zip coue anu so they weie unable to
pioviue an exact estimate of the anticipateu annual fianchise fee that woulu be collecteu
baseu on the gioss sales within the stuuy aiea They weie able to pioviue an estimate
14

howevei foi the zip coue The zip coue contains the laigest poition of the
stuuy aiea but also incluues poitions of the City of Atlanta The southein poition of the
stuuy aiea also incluues poitions of seveial othei zip coues
Thus to achieve the estimateu figuie above ueoigia Poweis estimate foi the zip
coue of was uiviueu by the numbei of peisons iuentifieu as living in the
zip coue by the 0S Buieau of the Census to obtain a pei capita amount that was
then applieu against the estimateu population of the stuuy aiea
Fianchise Fee Natuial uas
Atlanta uas Light is the only natuial gas uistiibution utility occupying public iightsofway
in the stuuy aiea Fianchise fees paiu to municipal coipoiations aie paiu out of the iate
base of all AuL customeis as a cost of uoing business AuL pioviueu an estimateu fianchise
fee of baseu on iuentification of the numbei of customeis in a slightly laigei
stuuy aiea than the one incluueu in this stuuy They pioviueu the estimate baseu on the
fianchise fee iate applieu against the annual amount of usage by those
customeis fiom Septembei thiough August
Because a new estimate foi the final stuuy aiea coulu not be obtaineu piioi to the
completion of the iepoit CvI0u aujusteu uown the estimate pioviueu by AuL The aiea
which CvI0u askeu AuL to use to calculate theii estimate containeu an auuitional tax
paicels anu moie people than the final stuuy aiea Even though all people
piobably uiu not iepiesent inuiviuual customeis CvI0u aujusteu uown AuLs estimate as if
each peison iepiesenteu a customei in oiuei to assuie that the iesulting aujustment
iepiesenteu a moie conseivative ievenue estimate
Fianchise Fees Phone
An attempt was maue to obtain an estimate fiom ATT foi the anticipateu fianchise fee
fiom lanu line telephone seivice in the stuuy aiea Foi a numbei of ieasons ielateu to the
iapiuly changing pace of the telephone inuustiy they weie ieluctant to pioviue an
estimate Since only lanuline telephone seivice iequiies occupancy of the municipal iight
ofway movement away fiom lanuline seivice to inteinetbaseu anu cell telephony seivices
15

is making this a uiminishing ievenue souice foi municipal coipoiations Thus this figuie
was obtaineu by aveiaging the pei capita telephone fianchise fee ievenue of the cities
of Bunwoouy anu }ohns Cieek anu applying against the population of the stuuy aiea
Table4:CityandFiscalYearBudget Revenue PerCapita
}ohns Cieek FY
Bunwoouy FY
Aveiage Pei Capita Revenue
StudyAreaRevenueEstimate $149,040

F Real Piopeity Taxes
The figuies given heie iepiesent the amount of ieal piopeity taxes being paiu by
stuuy aiea iesiuents to the county foi the seivices being pioviueu thiough county special
seivice tax uistiicts These special uistiict seivices incluue police ioaus maintenance paiks
anu iecieation anu stoim watei systems

In oiuei to allow foi compaiison of available


ievenues at existing levels of taxation these figuies weie useu It shoulu be noteu that
because statutoiy county homesteau exemptions anu the Bomesteau 0ption Sales Tax
cieuit must be applieu to the taxable value of iesiuential homesteau piopeity to ueteimine
the amount of ievenue geneiateu by application of a paiticulai millage iate in county
special uistiicts this specific millage iate uoes not uiiectly equate to a municipal millage
iate In othei woius the methou utilizeu heie uemonstiates the amount of piopeity tax
ievenue being geneiateu in the stuuy aiea foi the county that woulu become available to a
municipality that took ovei the piovision of those municipal seivices cuiiently being
pioviueu by the county if the amount of piopeity tax collections iemaineu constant but
was insteau collecteu by a city

The millage iate foi the unincoipoiateu special tax uistiict in BeKalb County in was
mills The taxable assesseu value fiom the uigest foi the stuuy aiea geneiateu
in piopeity tax ievenue foi the unincoipoiateu special seivices tax uistiict
baseu on this millage iate

See ua Law p anu BB effective Nay


16


Recent statutoiy changes have iequiieu that police seivices be bioken apait fiom the othei
special seivices tax uistiict seivices anu billeu as a sepaiate line item

The millage
iate foi the police seivices that weie pieviously incluueu in the special seivices tax uistiict
is mills anu the millage iate foi the iemaining unincoipoiateu special seivices is
mills Togethei these two millage iates equal mills anu iepiesent seivices funueu
fiom the pievious unincoipoiateu special tax uistiict The figuie is baseu on
taxable assesseu value figuies iuentification of homesteau exemptions value of the
homesteau exemption anu millage iates pioviueu by the Tax Commissionei as well as the
application of the B0ST tax cieuit

While most of the ievenues useu in the iepoit uiaw on


ievenues the changes in millage iate uigest anu law suggesteu a sepaiate calculation
of the potential ievenues be maue It shoulu be noteu that the piopeity tax
uigest uata useu to estimate the amount of piopeity tax ievenues to be geneiateu on the
cuiient millage iate weie obtaineu fiom the Tax Commissionei in }uly of anu it
is theiefoie likely that it uoes not ieflect completeu tax appeals


Penalties
Foi each yeais anu ieal piopeity tax ievenue the iatio of penalties anu inteiest
collecteu in the stuuy aiea against all taxes collecteu in the stuuy aiea was applieu against
the anu special uistiict ievenues iespectively

7
See BB effective Nay

The B0ST tax cieuit was calculateu baseu on a B0ST factoi of


This calculation assumes full collection.


17

II Expenuituies

The expenuituie estimates below aie baseu piimaiily on expenuituies incuiieu by
compaiable goveinments to pioviue seivices similai to those contemplateu to be pioviueu
by a city compiiseu of the stuuy aiea In calculating these estimates CvI0u fiist establisheu
two piimaiy compaiable goveinments the cities of Bunwoouy anu }ohns Cieek These
cities weie selecteu baseu on seveial factois Both cities aie new }ohns Cieek was officially
incoipoiateu in Becembei of anu Bunwoouy in Becembei of Both cities aie
locateu in the noith metio Atlanta aiea anu aie close in population to the stuuy aiea
Bunwoouy like the stuuy aiea is wholly containeu insiue the limits of BeKalb County
Because the two main compaiison goveinments hau lowei poveity iates anu theiefoie
might not have compaiable ciime issues an auuitional compaiison city Smyina was auueu
foi puiposes of compaiing costs foi opeiating a police uepaitment Smyinas population
poveity iate anu meuian householu income aie veiy similai to the stuuy aiea anu its
location in the metio Atlanta aiea all makes it a goou city foi puiposes of compaiing police
seivices Piofile uata foi the stuuy aiea anu the compaiison cities is given below in Table
Table5:2010DemographicProfileofStudyAreaandPrimaryComparisonCities
StudyArea JohnsCreek Dunwoody
Population
RaceWhite
RaceBlack
RaceBispanic
Race0thei
Neuian Income
Poveity
Population figuies foi the stuuy aiea weie supplieu by the ueoigia ueneial Assembly 0ffice of Congiessional
anu Legislative Reappoitionment othei figuies foi populations anu meuian income anu poveity iate came
fiom the Census anu the Ameiican Community Suivey estimates utilizing Blocks anu
Blockgioups that appioximateu the stuuy aiea foi ACS uata
18

Foi most of the cost estimates given the figuies weie ueiiveu by aveiaging the pei
capita costs of expenuituies maue by the two compaiison cities foi both the fiscal yeais of
anu

In some instances it was not possible to allocate costs to one oi moie


uepaitments because each city hau enteieu into contiacts with piivate pioviueis wheie
costs foi vaiious seivices weie aggiegateu togethei To ueteimine how best to inteipiet
the buuget anu othei financial uocuments of each city faculty fiom CvI0u inteivieweu the
City Nanageis anu the Finance Biiectois of both Bunwoouy anu }ohns Cieek anu claiifieu
infoimation with the City Cleik of Smyina The explanation foi how each estimate was
ueiiveu is incluueu below The summaiy of the expenuituies is given in Table below It is
impoitant to note that }ohns Cieek utilizeu a sole piivate contiactoi uuiing the fiscal yeais
incluueu in the iepoit The piivate contiactoi uiu not allocate its invoiceu costs to any
paiticulai uepaitment of the city anu thus city staff uiu its best to appioximate these
allocations in theii buuget anu othei financial uocuments
To ueteimine seivices on which to estimate expenuituies it was assumeu that a city
compiiseu of the stuuy aiea woulu pioviue the seivices cuiiently pioviueu to the
unincoipoiateu aiea via the unincoipoiateu special tax uistiicts This incluues police
paiks ioau maintenance anu stoim watei It was also assumeu that a new city woulu be
iesponsible foi planning anu zoning but that fiie anu iescue E sanitation anu othei
geneial countywiue seivices woulu continue to be pioviueu by the county

This means
that new city iesiuents woulu continue to pay geneial county taxes the fiie seivice uistiict
tax assessments foi uiauy Bospital anu any existing unincoipoiateu oi countywiue
bonueu inuebteuness just as they aie now Bowevei the unincoipoiateu special uistiict
taxes woulu be eliminateu anu ieplaceu by a municipal millage iate

City of Bunwoouy FY annual opeiating anu capital buuget useu FY amenueu buuget anu FY
appioveu buuget figuies }ohns Cieek FY Pioposeu Buuget useu FY actual expenuituies anu
FY miuyeai ieviseu buuget figuies City of Smyina FY buuget useu FY buuget figuies

This woulu also incluue geneial county goveinment opeiations all health anu welfaie seivices all couit
anu juuicial seivices except the county iecoiueis couit whose function woulu be supplanteu by a
municipal couit in a newly incoipoiateu city animal contiol public libiaiies anu the seivices of the office of
the sheiiff the tax commissionei anu the tax assessoi

The piovision of public school seivices anu taxes levieu to funu those seivices by the BeKalb Boaiu of
Euucation woulu be unaffecteu by municipal incoipoiation
19

Table6:SummaryofExpenditureEstimates
City Council
City Nanagei
ueneial 0peiationsAuministiative Seivices
Finance
Legal Bepaitment
City Cleik
Buman Resouices
Community Bevelopment
Bebt Inteiest fiom TAN
Facility Leases
Facility Naintenance
Nunicipal Couit
Paiks
Police
Public Woiks
Stoim Watei
Touiism
Contingency Funu
TotalOperatingCosts $21,311,237
Annual Capital foi Roaus Biainage anu Paik Acquisition
Police Capital anu ueneial Stait0p
TotalAnnualExpenditures $25,083,242

DeficitBasedonRevenueEstimatesUsing2010PropertyTaxes $1,272,623
SurplusBasedonRevenueEstimatesUsing2011PropertyTaxes*** +$3,445,741

CNB askeu foi an estimation of the costs associateu with a supeilative level of paiks maintenance seivice
This is uiscusseu in moie uetail in the paiks section below
This figuie iepiesents costs foi police vehicles anu police equipment as well as fuinituie anu financial
softwaie puichaseu foi geneial goveinment puiposes in Bunwoouy These costs aie amoitizeu ovei the
couise of five yeais Because police capital costs aie not incluueu elsewheie these aie tieateu heie as an
ongoing annual capital expense see police capital anu geneial staitup below
Baseu on Pieliminaiy Piopeity Tax Bigest Bata



20

City Council
At the instiuction of CNB an assumption was maue that theie woulu be six council
membeis anu one mayoi
CityandFiscalYearBudget Dept.Budget
Nayoi Council Nembeis pei city
}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
StudyAreaEstimate with Nayoi Council Nembeis $215,093

City Nanagei
These costs weie ueteimineu by aveiaging the anu fiscal yeais of Bunwoouy
anu }ohns Cieek These buuget lines incluueu costs not just foi salaiies anu benefits but
also foi stuuies anu othei uiscietionaiy items typically paiu foi out of a city manageis
buuget
CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $408,260

ueneial 0peiationsAuministiative Seivices
This figuie iepiesents ongoing opeiational costs incluuing infoimation technology These
figuies uo not incluue piopeity anu liability insuiance costs which aie incluueu unuei
Finance Foi }ohns Cieek these figuies also incluue human iesouices costs which weie
biought inhouse uuiing fiscal yeai As pieviously mentioneu }ohns Cieeks contiact
21

with the piivate sectoi pioviuei uiu not allocate costs to any paiticulai uepaitment of the
city So foi this figuie anu otheis in the iepoit specific cost allocation is an appioximation
CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $2,035,399

Finance
This figuie iepiesents all tiauitional finance functions accounting puichasing contiact
auministiation iisk management accounting anu payioll It also incluues piopeity anu
liability insuiance Fiscal Yeai foi Bunwoouy was excluueu because costs coulu not
be cleaily allocateu to the uepaitment




Legal Seivices
This figuie ieflects the pei capita aveiage of two fiscal yeais fiom both }ohns Cieek anu
Bunwoouy Fees ielateu to ongoing litigation against an auult novelty business weie
ueuucteu fiom the }ohns Cieek expenuituies
CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $280,372

CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $1,804,216
22

City Cleik
This figuie iepiesents two fiscal yeais fiom both cities aveiageu pei capita anu applieu to
the stuuy aiea population
CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $151,991

Buman Resouices
This figuie only incluues one buuget yeai foi each compaiison city because in fiscal yeai
human iesouices costs weie assigneu to geneial opeiations in }ohns Cieek anu to the
finance uepaitment in Bunwoouy
CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $137,726

Community Bevelopment
This figuie incluues costs foi planning anu zoning builuing inspections anu coue
enfoicement It iepiesents an aveiage of two fiscal yeais foi both cities aveiageu pei capita
anu applieu to the stuuy aiea population
CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $2,701,897

23

Bebt Inteiest fiom TAN


Tax Anticipation Notes aie essentially loans taken out anu iepaiu within the same calenuai
yeai to assist with cash flow given that expenuituies occui thioughout the yeai anu ceitain
tax ievenues aiiive only at given times of the yeai Bunwoouy manageu to avoiu taking out
a TAN by ieceiving fianchise fee payments fiom an electiic utility up fiont anu }ohns Cieek
was able to avoiu utilizing much of the funus they weie authoiizeu to boiiow In oiuei to
have some iuea of the likely costs associateu with inteiest on a TAN shoulu a new city neeu
to utilize one the costs below foi fiscal yeai weie taken fiom the miuyeai buuget
because the actual enu of yeai inteiest paiu was so low
CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
}ohns Cieek FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $101,327

Facility Leases
Both }ohns Cieek anu Bunwoouy lease the space that houses theii city hall anu police
uepaitments This figuie iepiesents an aveiage of fiscal yeai cost pei squaie foot foi
}ohns Cieek anu Bunwoouy applieu against the aveiage amount of squaie footage leaseu by
the two cities
CityandFiscalYearBudget LeasedSpaceSq.Ft. PerCapitaSq.Ft.
}ohns Cieek FY
Bunwoouy FY
Aveiage Squaie Footage
StudyAreaEstimateofSquareFootageNeeded 30,005

CityandFiscalYearBudget Dept.Budget PerSq.Ft.
}ohns Cieek FY
Bunwoouy FY
Aveiage Cost pei Squaie Foot
StudyAreaExpenditureEstimate $592,592

24

Facility Naintenance
Although the leases coveieu almost all maintenance costs this figuie iepiesents
expenuituies maue by Bunwoouy in fiscal yeai to pioviue aii conuitioning uuiing
municipal couit anu city council meetings that weie helu aftei iegulai business houis
These costs weie figuieu pei capita anu applieu to the population of the stuuy aiea
Nunicipal Couit
This figuie iepiesents costs foi two fiscal yeais foi each city aveiageu pei capita anu
applieu to the stuuy aiea population
CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $295,620

Paiks
In oiuei to calculate an expenuituie estimate foi paik maintenance CvI0u ueviateu fiom
the iepoit methouology employeu foi estimating othei expenuituies This was foi two
ieasons Fiist utilizing the stuuy methouology to ueteimine paiks maintenance costs was
too uifficult because Bunwoouy uiu not take owneiship of the paiks in its city until fiscal
yeai aftei the passage of a geneial statute anu it was uifficult to ueteimine the actual
acieage of paiks that aie maintaineu by }ohns Cieek Seconu CNB wanteu CvI0u to
investigate the costs that might be associateu with paiks maintenance in a city with a
supeib ieputation foi excellent seivice in paiks maintenance
BeKalb County pioviueu uetaileu infoimation iuentifying the costs associateu with
maintaining the paiks within the stuuy aiea anu estimateu the annual net cost to be
SeeAppendixH. CNB inventoiieu all the paiks iecieation centeis anu pools in
the stuuy aiea anu the following chait lists the paiks anu theii amenities
25

Table7:StudyAreaParkAmenities
Paik Acies FielusCouits Pools
Rec Centeis
Picnic
shelteis
Playgiounu
Stiuctuies
Ashfoiu Paik
tennis
basketball
lg iental
Blackbuin Paik
baseball
soccei
lighteu tennis
picnic
Biiaiwoou Paik
lighteu tennis
squaie foot
sq
ft
picnic

Biookhaven Paik multiuse picnic
ueoigian Bills Paik
multiuse
basketball
picnic

Lynwoou Paik
tennis
multiuse

squaie foot
iec centei
picnic


Nuiphey Canulei
Paik
lighteu
baseball
lighteu
football
tennis

squaie foot
picnic
lg iental



Skylanu Paik
tennis
multiuse
picnic

Total

Because the City of Roswell has been iecognizeu on multiple occasions foi its paiks in
iecent yeais by the ueoigia Paiks anu Recieation Association

anu because it is locateu


neai the stuuy aiea in noithein metio Atlanta it was chosen as a compaiison foi the
puipose of ueteimining what level of costs might be associateu with maintaining a
similaily high seivice level foi the paiks in the stuuy aiea
CityandFiscalYearBudget Dept.Budget Acres CostPerAcre
Roswell FY
Roswell FY
Aveiage Pei Acie Expenuituie
StudyAreaExpenditureEstimate $1,376,492

See httpioswellpatchcomaiticlesioswellpaikswinbestinstateawaiuagain
26

The uiffeience between the BeKalb County estimate foi the cuiient level of maintenance
anu this aspiiational expenuituie is The aspiiational amount was useu in
calculating the total estimateu costs in Table Neithei of the compaiison cities maintains a
iobust iecieation piogiam ielying insteau on nonpiofits to seive this function it was
assumeu a city compiiseu of the stuuy aiea woulu opeiate similaily
Police
Police opeiational expenuituies foi the two most iecent fiscal yeais of }ohns Cieek anu
Bunwoouy anu the two most iecent fiscal yeais foi Smyina weie aveiageu pei capita anu
applieu to the population of the stuuy aiea The most iecent fiscal yeais fiom Smyina weie
auueu foi the ieasons aiticulateu above
2010DemographicProfileStudyAreaandSmyrna
StudyArea Smyrna
Population
Neuian Income
Poveity
Population figuies foi the stuuy aiea supplieu by the ueoigia ueneial Assembly 0ffice of Congiessional anu
Legislative Reappoitionment othei figuies foi populations meuian householu income anu poveity iate fiom
the Census anu the Ameiican Community Suivey estimates utilizing Blocks anu
Blockgioups that appioximateu the stuuy aiea foi ACS uata
Because costs weie not allocateu between iegulai police seivices anu costs of opeiating
Smyinas jail in its FY buuget figuies fiom its FY buuget weie useu in oiuei to
pioviue two yeais of costs foi Smyina No jail costs aie incluueu in this figuie as it was
assumeu that a new city woulu not maintain its own jail anu that it woulu enjoy a similai
aiiangement with the BeKalb County Sheiiff as uoes Bunwoouy In Bunwoouy a fine
auuon is collecteu on cases that go to municipal couit anu sent to the county to pay foi
housing neeus foi any municipal piisoneis Nunicipal piisoneis woulu only be those
awaiting aujuuication oi seiving a sentence imposeu by the citys municipal couit It is
woithy of note that within these costs }ohns Cieek maintains k units paiticipates in a
coopeiative inteigoveinmental SWAT team anu employs people with foiensic
27

iesponsibilities anu an inteinal affaiis peison Bunwoouy contiibutes one peison to a


coopeiative inteigoveinmental SWAT team anu employs one fulltime naicotics peison


CityandFiscalYearBudget Dept.Budget PerCapita
}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
Smyina FY
Smyina FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $5,568,082

Public Woiks
To estimate costs foi public woiks which woulu piimaiily be ioau anu biiuge iepaii anu
maintenance we obtaineu the numbei of local ioau lane miles within the stuuy aiea anu
foi the cities of Bunwoouy anu }ohns Cieek fiom the Infoimation Technology anu 0utieach
Seivices Bivision of CvI0u thiough use of uIS mapping technology Fiscal yeai
expenuituies foi anu foi both cities weie calculateu pei lane mile

anu then
aveiageu That amount was multiplieu against the numbei of lane miles in the stuuy aiea
}ohns Cieek figuies uemonstiate a much highei cost pei lane mile uue to a massive ioau
wiuening pioject that took place uuiing the fiscal yeais ievieweu It also shoulu be noteu
that while costs associateu with stieet lights aie incluueu in Bunwoouys expenuituies
ievenues fiom iesiuential stieet light assessments in the stuuy aiea weie not estimateu
Thus the aveiage pei lane mile opeiating costs below shoulu be iobust enough to covei
costs associateu with significant ioau impiovements


BeKalb County maintains use of a police helicoptei anu othei specializeu iesouices that might only be
available to the city on a cost oi inteigoveinmental agieement basis upon incoipoiation

uB0T total lane mileage foim City maintains all county ioaus
28

CityandFiscalYearBudget Dept.Budget LaneMiles CostperLaneMile


}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
Aveiage Cost Pei Lane Nile
Numbei of Lane Niles in stuuy aiea
StudyAreaExpenditureEstimate $3,610,978

Stoim Watei
Stoim watei utilities aie enteipiise funus uesigneu to be funueu by a fee stiuctuie that
appioximates theii cost Since the ievenue estimate geneiateu a laigei numbei than the
expense estimate calculateu below the laigei amount was useu in Table above to insuie
an oveiall conseivative appioach to estimating expenuituies Because piopeity owneis in
the stuuy aiea aie cuiiently paying the fee stiuctuie imposeu by BeKalb County anu
because Bunwoouy has maintaineu the same fee stiuctuie imposeu by BeKalb piioi to its
incoipoiation Bunwoouy figuies aie shown below foi illustiative puiposes
CityandFiscalYearBudget Dept.Budget PerCapita
Bunwoouy FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $1,275,937

Touiism
Because a poition of the hotelmotel tax is ueuicateu to be spent on touiism by state law
many juiisuictions tenu to use that poition of the tax foi theii touiism buuget Thus the
estimateu ievenue figuie foi hotelmotel taxes iestiicteu to touiism has been useu as the
estimateu expenuituie amount
Contingency Funu
These aie funus useu by cities to covei unfoieseen expenuituies Bunwoouy uiu not
maintain a contingency funu in its fiist full fiscal yeai

29

CityandFiscalYearBudget Dept.Budget PerCapita


}ohns Cieek FY
}ohns Cieek FY
Bunwoouy FY
Bunwoouy FY
Aveiage Pei Capita Expenuituie
StudyAreaExpenditureEstimate $328,576

Annual Capital foi Roaus anu Biainage anu Paik Acquisition
These costs iepiesent the ongoing capital costs associateu with maintaining ioaus anu
accompanying uiainage ie lanu equipment as well as iepaiis anu alteiations to fixeu
woiks To ueteimine this figuie capital expenuituies foi ioaus anu uiainage iepoiteu to
the ueoigia Bepaitment of Community Affaiis by cities ianging in population fiom
to foi anu weie aveiageu pei capita These numbeis weie
then aujusteu foi inflation to uollai values anu the pei capita aveiage of those
numbeis was then applieu against the stuuy aieas population See Appendix I This figuie
excluues costs foi capital associateu with seivices that will continue to be maintaineu by
BeKalb County goveinment like libiaiies anu fiie stations as well as capital costs
associateu with city functions assumeu to be coveieu thiough opeiational costs by viitue of
contiacting with the piivate sectoi Capital neeus foi police seivices weie also excluueu
fiom this numbei as they aie accounteu foi sepaiately as police capital
To the figuie foi annual capital was auueu the cost foi a newly incoipoiateu city to acquiie
the paiks fiom BeKalb County as ueteimineu by the numbei of acies anu the statutoiy
foimula set foith in 0CuA which is This statute was passeu to
iesolve an impasse between Bunwoouy anu BeKalb County ovei the costs of paik
acquisition anu by viitue of its woiuing woulu apply if the stuuy aiea weie incoipoiateu
Even though this amount iepiesents only a onetime expense it was auueu to the line foi
annual capital costs because annual capital costs foi paiks aie not incluueu elsewheie

BCA uata uoes not segiegate lanu acquisition costs fiom othei paiksielateu capital costs consequently
only the statutoiilyueiiveu paiks acquisition cost figuie was useu
30

Police Capital anu ueneial Stait0p


These costs iepiesent those associateu with equipping a city police uepaitment as well as
some geneial nonpolice specific citywiue staitup costs Nost of these iepiesent costs
associateu with beginning the opeiation of a police uepaitment uue to the laige amount of
equipment anu vehicles neeueu to pioviue police seivices Foi puiposes of calculating this
figuie it was assumeu baseu on the iecent expeiiences of }ohns Cieek anu Bunwoouy that
leasepuichase agieements woulu be useu to acquiie the neeueu vehicles anu equipment
puisuant to a fiveyeai lease at an inteiest iate of To aiiive at these costs it was
assumeu that theie woulu be police officeis in a stuuy aiea city uepaitment baseu on
the aveiage numbei of police officeis pei capita cuiiently employeu in the cities of }ohns
Cieek Bunwoouy anu Smyina one officei foi eveiy people
Compaiison of Resiuent Population to Numbei of Police 0fficeis
}ohns Cieek Bunwoouy Smyina Stuuy Aiea
Population
No of Police 0fficeis
Resiuents pei 0fficei

The total costs of equipping each Bunwoouy officei with a vehicle computei fuinituie
iauio fiieaim anu othei basic equipment was ueteimineu pei capita anu applieu against
the numbei of officeis assumeu foi the stuuy aiea to aiiive at a total officei police capital
cost estimate


Aveiage numbei of iesiuents pei officei
No of officeis assumeu foi stuuy aiea
CityandFiscalYearBudget Budget CostPerOfficer
Bunwoouy FY Police Staitup
Numbei of 0fficeis Assumeu foi stuuy aiea x pei officei
StudyAreaExpenditureEstimate $3,077,847
31

In auuition to capital expenuituies foi police a new city woulu likely incui some geneial
staitup costs Bunwoouys staitup costs incluueu expenuituies foi fuinituie anu
softwaie Because }ohns Cieek staitup costs weie subsumeu in theii piivate venuei
contiact while Bunwoouy chose to puichase staitup equipment foi its sole owneiship
only Bunwoouy figuies weie useu to ueteimine geneial staitup costs
CityandFiscalYearBudget Budget PerCapita
Bunwoouy FY Nonpolice Staitup
StudyAreaExpenditureEstimate $827,342

Police capital costs anu geneial staitup costs figuieu pei capita foi the stuuy aiea weie
auueu togethei anu assumeu to be financeu ovei a five yeai teim on similai teims to those
useu by Bunwoouy to finance these same expenses


Police Capital Stait0p Estimate $3,077,847
ueneial Stait0p Cost Estimate $827,342
Total Staitup Cost Estimate $3,905,189
Amortizedover5yearsat2.5%interest $831,682
Appendix A

33

Appenuix B
Town Biookhaven Bevelopment
Town Biookhaven is a mixeuuse pioject locateu on a acie site on Peachtiee
Roau just south of 0glethoipe 0niveisity The oiiginal mastei plan foi the pioject incluueu
a ietail centei thiee iesiuential builuings iestauiants anu signatuie specialty shops
Cuiiently Town Biookhaven incluues as commeicial tenants Costco Publix Naishalls anu
LA Fitness among otheis Although oiiginally planneu as conuos the completeu
iesiuential builuings incluue apaitments that aie available foi lease
In the Bevelopment Authoiity of BeKalb County appioveu a tenyeai
giauuateu tax abatement foi the pioject The appioveu tax abatement iequiies the
uevelopei thiough its subsiuiaiy to pay an incieasing peicentage of piopeity taxes that
woulu be oweu on the pioject foi each yeai ovei a tenyeai peiiou In yeai eleven the
company will pay of the taxes assesseu on the piopeity subject to the abatement
The incieasing peicentages payable by the uevelopei aie set foith in payment in lieu of
taxes PIL0T agieements also appioveu in connection with the abatement The specific
peicentages payable by the uevelopei aie uiscusseu in moie uetail below The tax
abatement stiuctuie appioveu foi the uevelopei is consistent with the thenexisting policy
of the Bevelopment Authoiity anu with othei uevelopment authoiities in ueoigia In
auuition to the tax abatement the lanu use anu zoning uesignations iequiieu to suppoit the
oiiginal mastei plan foi the pioject weie appioveu by the BeKalb County Boaiu of
Commissioneis
BackgroundofTaxAbatementTransactions
Piopeity tax abatements aie typically pioviueu in ueoigia using a bonulease
tiansaction 0nuei the tiansactions stiuctuie title to the piopeity subject to the tax
abatement is tiansfeiieu to a uevelopment authoiity that is exempt fiom taxation The
piopeity is then leaseu to a piivate company Typical tax abatements last between five anu
yeais with ten yeais being most common In many localities the leaseholu inteiest helu
by the piivate company is subject to taxation often accoiuing to an incieasing peicentage
foimula Theie is no statutoiy guiuance on how such leaseholu inteiest shoulu be valueu
34

foi au valoiem tax puiposes howevei the ueoigia Supieme Couit has helu that each
county may ueteimine the faii maiket value of the lease on a ieasonable basis Typically
the teims of the lease anu the methouology foi valuation of the leaseholu inteiest aie
negotiateu up fiont with the county tax assessoi anu a PIL0T agieement is executeu
setting foith the valuation methouology anu the amounts incluuing any incieasing
peicentages that the company will owe uuiing the teim of the tax abatement tiansaction
The uevelopment authoiity issues bonus to acquiie the piopeity that is subject to
the abatement anu the bonus aie secuieu by the lease payments fiom the piivate
company While actual financing can be the puipose of the bonus geneially the sole
puipose of the bonulease tiansaction is the tax abatement In such cases the piivate
company buys the bonus anu thus the company is both the obligoi on the bonus thiough
the lease payments anu the holuei of the bonus In most bonulease tiansactions foi tax
abatement puiposes the uocumentation pioviues that the payments unuei the lease can be
papei tiansactions in lieu of an actual tiansfei of funus
TownBrookhavenTaxAbatementStructure
In 0ctobei the Bevelopment Authoiity appioveu the tax abatement foi Town
Biookhaven utilizing the bonulease tiansaction uesciibeu above

As iequiieu by ueoigia
law the pioposeu bonus weie valiuateu in the Supeiioi Couit of BeKalb County puisuant
to an 0iuei anu Final }uugment enteieu on Becembei 0nuei the stiuctuie
appioveu anu valiuateu the Bevelopment Authoiity will issue uiawuown bonus to acquiie
the pioject fiom the uevelopei as the pioject is uevelopeu

The pioject is then leaseu


fiom the Bevelopment Authoiity to the uevelopei thiough a lease agieement The payment
of the bonus is secuieu by the payments maue by the uevelopei puisuant to the lease
The Town Biookhaven stiuctuie pioviues that the uevelopei Semblei Bell
Biookhaven LLC will puichase the bonus that aie issueu making the uevelopei both the

17
The bond-lease transaction approved for Town Brookhaven consists of five separate series of bonds. The five
series were validated in the same validation proceeding in an aggregate principal amount not to exceed
$244,000,000. Typically, the aggregate amount of the bonds will reflect the total amount of expected construction
and other development costs for a project.
18
For example, initial bonds would be issued to acquire the land, and as improvements are constructed, additional
bonds are issued to acquire those improvements.
35

bonuholuei anu the obligoi on the bonus The uevelopeis stiuctuie is consistent with the
typical bonulease tax abatement tiansaction in that no tiue oi actual financing is
involveu the sole puipose of the bonu issue is to pioviue the tax abatement by tiansfeiiing
owneiship of the pioject to the Bevelopment Authoiity foi the peiiou of the tax abatement
The lease agieements incluue the option on the pait of the uevelopei to teiminate the
leases at any time at which point the piojects owneiship woulu be tiansfeiieu back to the
company The teimination option is consistent with typical tax abatement bonulease
stiuctuies
TownBrookhavenPILOTAgreements
In typical tax abatement bonulease tiansactions the payments to be maue in lieu of
taxes often stateu as peicentages of taxes otheiwise payable aie usually set foith in one
oi moie PIL0T agieements which aie usually negotiateu upfiont among the Bevelopment
Authoiity the piivate uevelopei the county boaiu of tax assessois anu the county tax
commissionei A PIL0T agieement can be a sepaiate agieement oi incluueu as sepaiate
piovisions in one of the othei bonu uocuments such as the lease agieement In the Town
Biookhaven stiuctuie the PIL0T agieements

aie pait of the lease agieement anu iequiie


that the uevelopei file not latei than Naich anu then Apiil of each yeai
theieaftei with the Bevelopment Authoiity the BeKalb County Boaiu of Assessois anu the
BeKalb County Tax Commissionei piofoima piopeity tax ietuins containing uetaileu lists
of the items of piopeity compiising the pioject that is subject to the tax abatement anu
showing the cost anu uate of puichase of each item
The amounts that aie payable unuei the uevelopei PIL0T agieements aie calculateu
as peicentages of noimal taxes that woulu have been oweu baseu on the value of the items
of piopeity uesciibeu in the ietuins The applicable peicentages of noimal taxes useu to
calculate the uevelopeis payments unuei the PIL0T agieement aie set foith in the
following scheuule

19
Since the bond structure technically consisted of five separate series of bonds, there are five separate, but
substantially identical, PILOT agreements one for each series of bonds.
36

Tax Yeai Payment Peicentages












anu theieaftei

0nuei the PIL0T agieements at the time that tax bills aie sent to piopeity owneis
in the county the Tax Commissionei will senu to the uevelopei a bill oi invoice foi the
payments uue If the uevelopei fails to make the payments iequiieu unuei the PIL0T
agieements the Tax Commissionei can assess penalties anu inteiest in amounts that woulu
be assesseu if the payments to be maue unuei the PIL0T agieements weie au valoiem
taxes
Since the pioject was not locateu in a city at the time the PIL0T agieements weie
executeu anu no city is paity to them it seems likely that no new municipality woulu be
bounu to them Thus shoulu a city be cieateu that incluues the Town Biookhaven
uevelopment theie woulu likely neeu to be some ueteimination of whethei the new city
wanteu to entei into a PIL0T agieement with the uevelopei

37

Appenuix C
Niscellaneous Revenues
The following table pioviues gieatei uetail foi the ievenue souices which
inuiviuually total less than
Revenue
Source
Methodology StudyArea
Estimate
DataSource
0tility Taxes
Ratio of assesseu value of utility
piopeity in stuuy aiea to
unincoipoiateu aiea
BeKalb Revenue Repoit by
Funu yeai thiough Becembei
0nincoipoiateu
Beavy
Equipment
Taxes
Ratio of assesseu value of
inuustiial piopeity in stuuy
aiea to BeKalb unincoipoiateu
aiea
BeKalb Revenue Repoit by
Funu yeai thiough Becembei
0nincoipoiateu
Fingeipiinting
Fees
Ratio of population in stuuy
aiea to BeKalb unincoipoiateu
aiea
BeKalb Revenue Repoit by
Funu yeai thiough Becembei
unincoipoiateu
Copying Fees
Ratio of population in stuuy
aiea to entiie County
BeKalb Revenue Repoit by
Funu yeai thiough Becembei
geneial funu
Notoi vehicles
Penalties
Ratio of penalties paiu foi
piopeity taxes to piopeity
taxes paiu in stuuy aiea times
total motoi vehicles taxes BeKalb Tax Commissionei
Qualifying Fees
of gioss annual
salaiyelecteu official
Puisuant to 0CuA


Investment
Income
Ratio of Population in stuuy
aiea to unincoipoiateu aiea
BeKalb Revenue Repoit by
Funu yeai thiough Becembei
unincoipoiateu
Total
Miscellaneous $13,743



38

0tility Taxes
Piopeity owneu by public utilities is assesseu by the state anu a local millage iate is applieu
to that assessment The iatio of the assesseu value of utilityowneu piopeity in the stuuy
aiea to the unincoipoiateu aiea was applieu against the assesseu value foi utility owneu
piopeity in the unincoipoiateu aiea
Beavy Equipment Taxes
Taxes aie assesseu on ceitain heavy equipment typically useu in inuustiial enviionments
An assumption was maue that the assesseu value of inuustiial piopeity seives as a pioxy
foi the piesence of such equipment The iatio of assesseu value of inuustiial piopeity to
the assesseu value of inuustiial piopeity in the unincoipoiateu aiea was applieu to the
ievenue geneiateu fiom heavy equipment taxes in the unincoipoiateu aiea
Fingeipiinting Fees
This figuie iepiesents ievenue ueiiveu fiom fees chaigeu foi making fingeipiint sets foi
license applicants to those iequesting them foi piofessional license applications oi othei
ieasons The iatio of population of the stuuy aiea to the unincoipoiateu aiea was useu to
ueteimine this amount
Copying Fees
uoveinments aie alloweu to chaige small fees pei page foi copies of uocuments It was
assumeu that a piopoitionate amount of iequests woulu be maue of a city compiiseu of the
stuuy aiea Beie the available uata foi copying fees iepiesenteu fees collecteu on a county
wiue basis so the iatio of population of the stuuy aiea to the entiie county population was
useu
Notoi vehicles Penalties
This figuie was obtaineu by applying the iatio of penalties paiu foi ieal piopeity taxes to
ieal piopeity taxes paiu in the stuuy aiea times the anticipateu amount of motoi vehicle
39

taxes An assumption was maue that the iatio of taxpayeis that incuiieu penalties foi
failuie to timely pay ieal piopeity taxes woulu be the same foi motoi vehicle taxes
Qualifying Fees
State law 0CuA pioviues that municipalities collect qualifying fees foi those
seeking electeu office at a iate of of gioss annual salaiy foi the electeu office being
sought CNB askeu foi an assumption to be maue that this figuie be calculateu foi one
mayoi anu six council membeis Thus this figuie was obtaineu by aveiaging the salaiies of
the electeu officials in Bunwoouy anu }ohns Cieek each of which have six council
membeis anu one mayoi anu then multiplying that aveiageu amount by thiee peicent
Investment Income
Noimally local goveinments aie able to ueiive some ievenue fiom inteiest obtaineu on
investments of funus typically maue foi limiteu peiious of time As theie was no ievenue
fiom such investments in the actual ievenue uata fiom BeKalb County we uiu not
estimate a figuie








40

Appenuix B
0nincoipoiateu County Revenue Figuies anu Bata Souices
Revenue Souice 0nincoipoiateu County
Revenue Figuie
Bata Souice
0ccupation Taxes
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Beveiage Excise Taxes
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Peisonal Piopeity Taxes
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
BotelNotel Tax
BotelNotel Tax iestiicteu

BeKalb Buuget Book


Business License Police
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Business License Beveiages
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Bank Shaies Tax
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Intangible
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Bevelopment Funu
BeKalb Buuget Book
Revenue fiom Peimit Fees
Zoning anu vaiiance Fees
anu Peimits
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Insuiance Piemiums
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Fines Foifeituies
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei

41

Stoim Watei Funu

BeKalb Buuget Book


Notoi vehicles
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Law Enfoicement
Confiscateu Nonies Funu

BeKalb Buuget Book


Paiking anu Rental
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Sale of Piinteu Nateiial
Police
BeKalb Revenue Repoit by
Funu yeai thiough
Becembei
Fianchise Fees Cable BeKalb Revenue Repoit by
Funu yeai thiough
Becembei














42

Appenuix E
Botels in the Stuuy Aiea
Bilton uaiuen Inn Atlanta Peiimetei Centei
Lake Beain Biive Atlanta uA
Wingate by Wynuham
Claiimont Roau Atlanta uA
Niciotel Inn anu Suites AtlantaBuckheau Aiea
Coipoiate Boulevaiu Atlanta uA
Reu Roof Inn
N Biuiu Bills Roau Atlanta uA
Bampton Inn Biuiu Bills
Noith Biuiu Bills Roau Atlanta uA
Boubletiee Botel Atlanta Noith Biuiu Bills Emoiy Aiea
Noith Biuiu Bills Roau Atlanta uA
Resiuence Inn Atlanta BuckheauLenox Paik
Lake Boulevaiu Atlanta uA
Extenueu Stay Beluxe Atlanta Lenox
Peachtiee Roau Atlanta uA
Boliuay Inn Full Seivices
Chamblee Bunwoouy Roau Atlanta uA



43

Appenuix F
B0ST Calculations anu County Ceitification Lettei


















Example from 48-8-104
(2) For illustration purposes, a hypothetical example of the (3) In the event the total amount payable in a calendar year to all existing municipalities
calculation of the equalization amount is provided below. Calculated using DeKalb/Study Area as certified by the county pursuant to subparagraph (d)(2)(B) of this Code section plus
Example Example data Calculation the total equalization amount payable to all qualified municipalities in the special district
First, calculate the exceeds the capital outlay proceeds calculated based on a maximum capital factor of 0.200,
homestead factor in the commissioner shall pay to the governing authority of each qualified municipality a share
accordance with division of such proceeds calculated as follows:
(c)(2)(B)(i) of this Code Amount from county certification letter (A) above plus Equalization amount (J) from left 3,814,328.47 $
section as follows: Does this amount exceed Capital outlay proceeds (A) below? YES
(A) Capital factor 0.150 0.150 - If yes, continue calculation below. If no, go to (5) below
certified by county as
required by subsection (d) (A) Determine the capital outlay proceeds based on a maximum capital factor of 0.200;
of this Code section Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left 16,600,000.00 $
(B) Net amount of sales and $50 million 50,000,000.00 $ 83,000,000.00 $ (B) Subtract the amount certified by the county as payable to existing municipalities pursuant
use tax collected in the to subparagraph (d)(2)(B) of this Code section;
special district pursuant Amount from county certification letter: $0.00
to this article for the (C) The remaining amount equals the portion of the capital outlay proceeds that may be used
previous calendar year by the commissioner to pay equalization amounts to qualified municipalities.
(C) Taxes levied for county $100 million 100,000,000.00 $ 154,329,606.97 $ Total: 16,600,000.00 $
purposes on only that The commissioner shall calculate each qualified municipality's share of such remaining amount
portion of the county tax by dividing the net homestead digest for each qualified municipality by the total homestead
digest that represents net digest for all municipalities.
assessments on qualified Net Homestead Digest for municipality: 1,291,864,316 $
homestead property after Total Homestead Digest for all municipalities: 4,198,280,316
all other homestead Divide Net Homestead Digest by Total Homestead Digest: 31%
exemptions have been applied
(D) Calculation of 0.425 0.425 0.538 Total (C) above times calculated percentage above 5,108,031.39 $
homestead factor using
figures above =
[(1-0.150)($50 (4) In the event the incorporated county millage rate for a qualified municipality is greater than
million/$100 million)] the unincorporated county millage rate, no payment shall be due from the governing authority
Next, calculate the 15.0 mills of the qualified municipality to the governing authority of the county.
equalization amount in
accordance with paragraph (1)
of this subsection as follows: (5) In the event the amount of capital outlay proceeds exceeds the sum of the equalization
(E) Unincorporated county 15.0 mills 15.00 19.40 mills amounts due all qualified municipalities plus the total amount certified under subparagraph (d)(2)(B)
millage rate of this Code section as due all existing municipalities, the commissioner shall distribute to each
(F)Minus the incorporated Difference: (10.0 mills) (10.00) (13.91) mills qualified municipality a portion of such excess equal to the net homestead digest for such
county millage rate for municipality divided by the total homestead digest.
qualified municipality "Y" Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left - $
Difference: = 5.0 mills 5.00 5.49 mills Amount from county certification letter (A) above plus Equalization amount (J) from left 10,928,408.00 $
(G) Times homestead factor x .425 0.425 x 0.538 Does amount of Capital outlay proceeds exceed amount from (3) above? NO
(calculated above) If yes, continue calculation below. If no, go back to (3) above
(H) Equals the equalization = 2.125 2.125 2.953 mills
millage: Amount of excess = Capital outlay proceeds minus amount from (3) above (10,928,408.00) $
(I) Times net homestead $200 million 200,000,000.00 $ 1,291,864,316 $
digest for qualified Net Homestead Digest for municipality from Certification letter: 1,291,864,316.00 $
municipality "Y" Total Homestead Digest for county: 9,051,268,724.00 $
(J) Equals the equalization $425,000 $425,000.00 3,814,328.47 $ Divide Net Homestead Digest by Total Homestead Digest: 14%
amount payable to
municipality "Y" Total (C) above times calculated percentage above (1,559,783.58) $
Georgia Department of Revenue
Local Government Services Division
Data compiled by: J.Ussery
1 of 1
Scenario 1
44
Example from 48-8-104
(2) For illustration purposes, a hypothetical example of the (3) In the event the total amount payable in a calendar year to all existing municipalities
calculation of the equalization amount is provided below. Calculated using DeKalb/Study Area as certified by the county pursuant to subparagraph (d)(2)(B) of this Code section plus
Example Example data Calculation the total equalization amount payable to all qualified municipalities in the special district
First, calculate the exceeds the capital outlay proceeds calculated based on a maximum capital factor of 0.200,
homestead factor in the commissioner shall pay to the governing authority of each qualified municipality a share
accordance with division of such proceeds calculated as follows:
(c)(2)(B)(i) of this Code Amount from county certification letter (A) above plus Equalization amount (J) from left 3,902,927.31 $
section as follows: Does this amount exceed Capital outlay proceeds (A) below? NO
(A) Capital factor 0.150 0.150 0.200 If yes, continue calculation below. If no, go to (5) below
certified by county as
required by subsection (d) (A) Determine the capital outlay proceeds based on a maximum capital factor of 0.200;
of this Code section Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left 18,241,559.40 $
(B) Net amount of sales and $50 million 50,000,000.00 $ 91,207,797.00 $ (B) Subtract the amount certified by the county as payable to existing municipalities pursuant
use tax collected in the to subparagraph (d)(2)(B) of this Code section;
special district pursuant Amount from county certification letter: $0.00
to this article for the (C) The remaining amount equals the portion of the capital outlay proceeds that may be used
previous calendar year by the commissioner to pay equalization amounts to qualified municipalities.
(C) Taxes levied for county $100 million 100,000,000.00 $ 154,329,606.97 $ Total: 18,241,559.40 $
purposes on only that The commissioner shall calculate each qualified municipality's share of such remaining amount
portion of the county tax by dividing the net homestead digest for each qualified municipality by the total homestead
digest that represents net digest for all municipalities.
assessments on qualified Net Homestead Digest for municipality: 1,291,864,316 $
homestead property after Total Homestead Digest for all municipalities: 4,198,280,316
all other homestead Divide Net Homestead Digest by Total Homestead Digest: 31%
exemptions have been applied
(D) Calculation of 0.425 0.425 0.473 Total (C) above times calculated percentage above 5,613,160.12 $
homestead factor using
figures above =
[(1-0.150)($50 (4) In the event the incorporated county millage rate for a qualified municipality is greater than
million/$100 million)] the unincorporated county millage rate, no payment shall be due from the governing authority
Next, calculate the 15.0 mills of the qualified municipality to the governing authority of the county.
equalization amount in
accordance with paragraph (1)
of this subsection as follows: (5) In the event the amount of capital outlay proceeds exceeds the sum of the equalization
(E) Unincorporated county 15.0 mills 15.00 19.40 mills amounts due all qualified municipalities plus the total amount certified under subparagraph (d)(2)(B)
millage rate of this Code section as due all existing municipalities, the commissioner shall distribute to each
(F)Minus the incorporated Difference: (10.0 mills) (10.00) (13.01) mills qualified municipality a portion of such excess equal to the net homestead digest for such
county millage rate for municipality divided by the total homestead digest.
qualified municipality "Y" Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left 18,241,559.40 $
Difference: = 5.0 mills 5.00 6.39 mills Amount from county certification letter (A) above plus Equalization amount (J) from left 11,211,166.00 $
(G) Times homestead factor x .425 0.425 x 0.473 Does amount of Capital outlay proceeds exceed amount from (3) above? YES
(calculated above) If yes, continue calculation below. If no, go back to (3) above
(H) Equals the equalization = 2.125 2.125 3.021 mills
millage: Amount of excess = Capital outlay proceeds minus amount from (3) above 7,030,393.40 $
(I) Times net homestead $200 million 200,000,000.00 $ 1,291,864,316 $
digest for qualified Net Homestead Digest for municipality from Certification letter: 1,291,864,316 $
municipality "Y" Total Homestead Digest for county: 9,051,268,724 $
(J) Equals the equalization $425,000 $425,000.00 3,902,927.31 $ Divide Net Homestead Digest by Total Homestead Digest: 14%
amount payable to
municipality "Y" Total (C) above times calculated percentage above 1,003,429.98 $
Georgia Department of Revenue
Local Government Services Division
Data compiled by: J.Ussery
1 of 1
Scenario 2
45
46
47
48
49
50

Appenuix u
CBBu Bata Tables
Bata Souice ueoigia Bepaitment of Community Affaiis CBBu Awaius
Population figuies ieflect 0S Census Buieau Annual Estimates


City Pop Total Pei
capita
Inflation
Aujustment
Kennesaw
Nilton x x
Newnan
Balton
Binesville
East Point
uainesville
Ptiee City
Rome
Bunwoouy x x
Smyina
valuosta
Naiietta
Alphaietta
Wainei Robins
}ohns Cieek x x
Roswell
Nacon
Sanuy Spiings x x
Aveiage







51



City Pop Total Pei
capita
Inflation
Aujustment
Kennesaw
Nilton x x
Newnan
Balton
Binesville
East Point
uainesville
Ptiee City
Rome
Bunwoouy x x
Smyina
valuosta
Naiietta
Alphaietta
Wainei Robins
}ohns Cieek x x
Roswell
Nacon
Sanuy Spiings
Aveiage










52


City Pop Total Pei
capita
Inflation
Aujustment
Kennesaw
Nilton
Newnan
Balton
Binesville
East Point
uainesville
Ptiee City
Rome
Bunwoouy x x
Smyina
valuosta
Naiietta
Alphaietta
Wainei Robins
}ohns Cieek
Roswell
Nacon
Sanuy Spiings
Aveiage










53


City Pop Total Pei
capita
Inflation
aujustment
Kennesaw
Nilton
Newnan
Balton
Binesville
East Point
uainesville
Ptiee City
Rome
Bunwoouy x x
Smyina
valuosta
Naiietta
Alphaietta
Wainei Robins
}ohns Cieek
Roswell
Nacon
Sanuy Spiings
Aveiage












54


City Pop Total Pei
capita
Inflation
Aujustment
Kennesaw
Nilton
Newnan
Balton
Binesville
East Point
uainesville
Ptiee City
Rome
Bunwoouy x
Smyina
valuosta
Naiietta
Alphaietta
Wainei Robins
}ohns Cieek
Roswell
Nacon
Sanuy Spiings
Aveiage



Total Inflation Aujusteu to values
yeai aveiage
Stuuy aiea pop


Total



55

Appenuix B
Department of Recreation, Parks and Cultural Affairs
Brookhaven Scope Questions
1. The age and square footage of the recreation centers in Briarwood Park and
Lynwood Park?
Briarwood Recreation Center
History
The center was built in 1964. It is unknown if the property was either purchased or donated.
The origin of its name is unknown.
Building Features - less than 10,000 square feet to include:
x Gymnasium 5205 sq. ft. Multi-purpose room 1200 sq. ft.
x classroom 525 sq. ft.(estimate) office 90 sq. ft. (est.)
x mechanical room 60 sq. ft. (est.) hallway 32 sq. ft. (est.)
x snack area 464 sq. ft (est.) kitchen 70 sq. ft. (est.)
x x-room 44 sq. ft. (est.) restrooms each @ 296 sq. ft. (est.)
Lynwood Recreation Center
History
x Lynwood Recreation Center originated from the Lynwood Park School.
x The school was built in the early 40s for the African-American community
students in grades 1-12
x When integration took place in the mid-60s the school closed.
x The county purchased the land for $1.00 and redeveloped the recreation center in
the early 70s.
Building Features - 15,000 square ft. The building consist of a game room 38x 28 ,
art/weight room 28x 24,
2. The annual revenue collected from the reservation fees for picnic shelters in Blackwood
Park and Murphey Candler Park?
The department only charges a fee to rent a picnic shelter at Blackburn and its estimated annual
revenue is around 1,500 dollars annually.
56

3. The total annual revenue generated by the pools in Briarwood, Lynwood, and Murphey
Candler Parks?
Briarwood pool = pool closed due environmental issues
Lynwood Pool = $800 dollars annually
Murphey Candler = 31,000 annually
4. The total annual revenue generated by the tennis courts in Ashford, Blackburn,
Briarwood, Lynwood, Murphey Candler, and Skyland Parks?
The Department only charges a fee at Blackburn tennis center and it brings in an estimated
$16,600 dollars annually.
5. The annual costs for operating these parks, pools and recreation centers?
x It costs the County approximately $113,000 annually to operate the Lynwood and
Briarwood Recreation Centers.
x Annual costs to the County to operate Murphey Candler, Lynwood and Briarwood pools:
Murphy Candler:
o $25,000 for personnel
o $9,000 chemical cost
o $3,000 supplies
Briarwood and Lynwood are the same due to volume of people attending:
o 16,000 for personnel
o 5,500 chemical cost
o 3,000 supplies
Annual costs for operating Ashford, Blackburn, Briarwood, Lynwood, Murphey Candler, and
Skyland Parks:
o $331,040 per year



57

Appenuix I
Capital Bata Tables
Bata Souice ueoigia Bepaitment of Community Affaiis Capital Expenuituies foi Roaus anu
Biainage
Population figuies ieflect 0S Census Buieau Annual Estimates

City
Population Total Capital
Expenuituie Roaus
anu Biainage
Pei Capita Inflation
Aujustment
Albany

Alphaietta

Balton

East Point

uainesville

Binesville

}ohns Cieek

Kennesaw

Nacon

Naiietta

Newnan

Peachtiee City

Rome

Roswell

Sanuy Spiings
na
Smyina

valuosta

Wainei
Robins




Aveiage

58


City
Population Total Capital
Expenuituie Roaus
anu Biainage
Pei Capita Inflation
Aujustment
Albany

Alphaietta

Balton

East Point
na
uainesville

Binesville

}ohns Cieek

Kennesaw

Nacon

Naiietta

Newnan

Peachtiee City

Rome

Roswell

Sanuy Spiings

Smyina

valuosta

Wainei
Robins




Aveiage






59


City
Population Total Capital
Expenuituie Roaus
anu Biainage
Pei Capita Inflation
Aujustment
Albany
Alphaietta
Balton
Bunwoouy
uainesville
Binesville
}ohns Cieek
Kennesaw
Nacon
Naiietta
Newnan
Peachtiee City
Rome
Roswell
Sanuy Spiings
Smyina
valuosta
Wainei
Robins



Aveiage
Total Inflation Aujusteu to values
yeai aveiage
Stuuy aiea population
Total

Supplemental ProposedCityof Brookhaven


PropertyTaxAnalysis
January 2012




SupplementalProposedCityofBrookhavenPropertyTaxAnalysis

AttherequestofStateRepresentativeMikeJacobs,thissupplementalanalysiswasundertaken
to determine the potential property tax revenue that would be derived under two hypothetical
municipal millage rate scenarios. Utilizing the same data used to prepare the primary report, Revenue
andExpenditureEstimatesforaProposedCityofBrookhaven,theamountofpropertytaxrevenuethat
would be generated by a hypothetical municipal millage rate of 3.35 mills and 3.221 mills with a
homestead exemption of $20,000 was calculated. Because residential homestead property owners in
DeKalbCountyenjoythebenefitofapropertytaxrollbackoncountytaxesbyvirtueoftheoperationof
the Homestead Option Sales Tax, identical millage rates imposed by the county and cities within the
county have a different impact in the dollar amount due the applicable government from residential
homesteadpropertyowners.
The primary study estimated expenditures at $25,083,242 and revenues of $28,528,983 based
on the 2011 preliminary tax digest and current county special district millage rate of 6.39 mills. This
revenue estimate is based upon an estimation of $9,927,881 in property tax revenue and $43,207 in
property tax penalties currently being collected in the DeKalb County special district. The estimated
revenues other than the property tax related revenues are $18,557,895, meaning that for estimated
revenuestomatchestimatedexpenditures,$6,525,347wouldneedtobegeneratedbypropertytaxes.
Asdemonstratedinthetablebelow,themillageratenecessarytogeneratethatamountofpropertytax
revenue is 3.221. A municipal millage rate of 3.35 mills would generate $6,786,928, which exceeds
estimatedexpendituresintheprimarystudyby$261,348.
Table1:RevenueGeneratedbyHypotheticalCityMillageRates andDeKalbSpecialDistrictMillageRate
CityMillageRateof3.221millswith
$20,000homesteadexemption
City Millage Rate of 3.35 mills with
$20,000homesteadexemption
DeKalb County Millage Rate of 6.39
mills with existing homestead
exemptions and HOST factor of
47.3%
$6,525,580 $6,786,928 $9,927,881

Supplemental ProposedCityof Brookhaven


Airport AreaRevenueAnalysis
March 2012
SupplementalProposedCityofBrookhavenAirportAreaRevenueAnalysis

This supplemental analysis was undertaken at the request of State Representative Mike Jacobs
to determine the estimated potential tax and fee revenue value that could be derived from a small
portionoftheareaoriginallyincludedinthestudyareaintheprimaryreport,RevenueandExpenditure
EstimatesforaProposedCityofBrookhaven.Utilizingthesamedataandmethodologyusedtoprepare
theprimaryreport,theestimatedamountofrevenuethatwouldbegeneratedbythesocalledairport
areawascalculated.
1

It should be noted that much of this area is part of Peachtree DeKalb Airport and thus being
publicproperty,wouldnotgeneratetaxrevenuetoamunicipalcorporation.Becausethereisverylittle
residentpopulationintheairportarea,therevenueestimatemethodologiesprovidedinthereportthat
aremostheavilydependentoncommercialpropertywereutilized.Includingpropertytaxes,removalof
theairportareawouldreducetheoverallrevenueestimatebyapproximately$126,000.Fordetermining
thepropertytaxportionofthisestimate,apropertytaxmillagerateof3.35millsandthe2011property
taxdigestvalues,whichwerelowerthan2010values,wereused.
The following table demonstrates the changes in the ratios of residential, commercial, and
industrial areas of the study area to the unincorporated area of DeKalb County with the Airport Area
removed.
RatioComparisonsPrimaryReportStudyAreaWithandWithoutAirportArea
OriginalStudyArea (including
AirportArea)
StudyAreawithoutAirport
Area
ResidentialAV 14.67% 14.66%
CommercialAV 12.41% 12.10%
IndustrialAV 1.40% 1.31%
A previous supplemental analysis, Supplemental Proposed City of Brookhaven Property Tax
Analysis,indicatedthatamunicipalmillagerateof3.35millsinthestudyareawouldgenerateanoverall
revenueestimatewhichexceedsestimatedexpendituresintheprimarystudyby$261,348.Subtracting
the estimated revenue loss resulting from removal of the airport area from this figure, results in an
anticipatedsurplusof$135,348,beforetakingintoconsiderationanypossiblereductioninexpenditures
thatmightresultfromremovaloftheairportarea.

1
Theairportareaisatriangleshapedzoneincludedintheprimarystudyarea.Thewesternboundaryofthe
airportareaistheeasternhalfofClairmontRoadbetweenBufordHighwayandthelimitsoftheexistingCityof
Chamblee,andtheeasternboundaryrunsbetweenBufordHighwaysintersectionwithClairmontRoadalongthe
westernsideofBufordHighwaynorthtoitsintersectionwiththecitylimitsofChamblee.

removal of
the airport area would reduce the overall revenue estimate by approximately $126,000.
3.35 mills
anticipated surplus of $135,348,
results in an