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The Brookhaven Feasibility Study: An Executive Summary

Citizens for North DeKalb, Inc. (C4ND) is pleased to present the feasibility study of a city of Brookhaven performed by the University of Georgias Carl Vinson Institute of Government (CVI). The study was commissioned by a group of citizens to explore the municipal options for residents of an area of unincorporated northern DeKalb County identified by C4ND.

The study was paid for by private donations, and we are grateful to the citizens who contributed to this effort. We invite you to read the study in detail and draw your own conclusions, but here are some of the key points of the study:

The study area defines a city of Brookhaven that would be 12.02 square miles, with boundaries of the Fulton County line to the west, the city of Dunwoody to the north, the city of Chamblee to the east, and to the south a portion of I-85.

The study area has a population of 49,188 (8.74% of the population of all of unincorporated DeKalb). Median income is $56,231 and the poverty rate is 12.2% (compared to $51,957 and 14.5%, respectively, for all of unincorporated DeKalb).

The study estimates that a city of Brookhaven would have annual revenues of approximately $28.5 million. This estimate is based on the most current information available, including the current millage rate and the 2011 taxable assessed values obtained from the DeKalb County Tax Commissioner. For comparison purposes, Dunwoodys 2011 amended budget currently anticipates total revenues of $26.1 million.

The study estimates that a city of Brookhaven would have annual expenditures of approximately $25.1 million. This estimate includes annual operating expenses, capital expenditures and start-up costs.

Based on estimated revenues and expenditures, a city of Brookhaven would have an annual surplus of approximately $3.4 million. This surplus represents additional money that could be used to finance a property tax reduction or additional expenditures.

The study indicates that DeKalb Countys 82% increase in the 2011 unincorporated area millage rate from 3.50 to 6.39 raised the property tax revenue in the study area from approximately $5.2 million to $9.9 million, making a city of Brookhaven a much more viable proposition.

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The study assumes that a city of Brookhaven, like other new cities, would operate its own departments of police, parks and recreation, community development (which includes planning, zoning, permitting, and code enforcement), and public works (which includes road repair and paving and storm water drainage). Municipal courts and an economic development function are also assumed to be provided by a city of Brookhaven.

As residents of DeKalb County, Brookhaven residents would continue to pay

for and receive services from DeKalb County, including schools, sanitation, water and sewer, fire, 911 emergency services, jails and most courts.

Most expenditure estimates were calculated using figures for the cities deemed most comparable to the study area: Dunwoody and Johns Creek. These cities were deemed most comparable based on a number of factors including their age (both were recently created), their proximity to the study area, and their population relative to that of the study area. These cities were also selected because they utilize more modern, cost-efficient methods of staffing and service provision, including the out-sourcing of functions other than police to third-party contractors.

DeKalb County provided detailed information identifying the costs associated with maintaining the parks within the study area and estimated the annual net cost to be $480,140. C4ND asked CVI to develop a cost estimate for a parks department that aspired to do better than the status quo. The city of Roswell was chosen as a comparison city because of its reputation for excellent parks. The cost estimate for parks developed by CVI based on Roswell and used in the study is $1,376,492.

The Carl Vinson Institute (CVI) has a track record of reliable, conservative predictions for the studies it has performed for other cities. For example, CVI estimated that revenues for a city of Dunwoody would be $18,777,904. In its first full fiscal year in 2009, Dunwoodys actual revenues turned out to be $18,394,942, or 2.0% less than CVI estimated. In the same study, CVI also predicted that Dunwoodys total operating expenditures would be $15,571,573; in 2009, Dunwoodys actual operating expenditures turned out to be $13,823,811, or 11% less than CVI estimated.

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

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Introduction InJuneof2011,StateRepresentativeMikeJacobsandCitizensforNorthDeKalb,Inc.(hereinafter C4ND) engaged the Carl Vinson Institute of Government to study an areawithin unincorporated DeKalb County in order to aid their consideration of the areaspossibleincorporation.Brookhaven,orthestudyarea,asitisreferredtointhisreport,iscomprisedof12.02squaremiles1and issituated innorthwestDeKalbCounty.ThestudyareaisborderedonthewestbythecitiesofAtlantaandSandySpringsalongtheFultonandDeKalb County line, on the north by I285 which is the southern border of the City ofDunwoody,ontheeastbytheCityofChambleeandtothesouthbyaportionofI85.SeeAppendixAforamapofthestudyarea.TheareaishometoOglethorpeUniversity,aprivateliberal arts university founded in 1835,which houses some of the public records of theformermunicipal corporation known as the Village ofNorthAtlantawhich existed from1924to1965andincludedmuchoftheterritoryincludedinthestudyarea.2

This report provides estimates of revenues and expenditures a potential City ofBrookhaven,ifincorporated,couldanticipateinprovidingcertainmunicipalservicesforasingle fiscal year. The revenue estimates are primarily based upon actual revenuescollectedfortheunincorporatedareabyDeKalbCountyinfiscalyear(FY)2010aswellasprojections for franchise fees, the Homestead Option Sales Tax, and the CommunityDevelopmentBlockGrant.Expenditureestimatesareprimarilybasedoncostsforservicesin the cities of Dunwoody and Johns Creek. For estimates related to police costs,expendituresfromtheCityofSmyrnawerealsoused. Foranestimateonanaspirationallevelofparkmaintenance,expendituresfromtheCityofRoswellwereused.Foreachcitythatwasusedtoestablishcostsestimates,CVIOGfacultyexamined itsbudgetdocumentsand conducted interviewswith city staff to inquire as to theproper allocationof certaincostsandtoclarifyfiguresandlineitemsreportedintheirbudgets.

ThecitiesofJohnsCreekandDunwoodywereselectedattheoutsetofthestudytobeused as theprimary comparisons for expenditurepurposes.Both cities are similar in1AsdeterminedbytheCarlVinsonInstitutesDivisionofInformationTechnologyandOutreachServicesthroughGISmapping.2SeeGa.Law1963,p.3457.

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sizetothestudyareaandbothare located innorthernmetropolitanAtlanta. Inaddition,bothcitiesarenew;DunwoodywasincorporatedonDecember1,2008,andJohnsCreekonDecember1,2006.3Eachofthesecitiesfollowsaprivatizationmodelthataimstominimizethe number of fulltime staff employed directly by the city and to contractwith outsideprivatesectorproviderstoprovideservices.Thefiscalyearsof2009and2010wereusedfromeachcitytoestimatecosts,becausetheyconstitutedthebestavailabledataduringthetime the studywas conducted. Formost of that time, theCity of JohnsCreek contractedwith one private sector contractor to provide the bulk of its services, while Dunwoodycontractedwiththreeproviders.Bothcitieshavemorerecentlysubdividedandrebidtheirservice contracts to multiple private sector providers. It was assumed that a new citywould follow a similar pattern of outsourcing city services to private contractors. Animportant point to note about cities that follow this type of model is that significantportionsofcapitalcoststhatwouldbeattributabletoacityscapitalbudgetarebornebythecontractors.Inotherwords,coststhatmightotherwisebeattributabletoacityscapitalbudgetarebeingspentinoperationsasthecontractorsarerequiredtousetheirvehiclesandothercapitalequipmenttoperformtheservice.

Estimatesgiveninthisreportarebasedontaxleviesandservicelevelsforacitynotyetcreated;and, thus, theyshouldnotbeviewedascertainties.While it isourhopethatthisreportassistswiththepublicconsiderationofapotentialmunicipal incorporation, itshouldnotbeconstruedtoconstituteapositioneitherfororagainsttheestablishmentofaCityofBrookhavenbytheCarlVinsonInstituteofGovernment(CVIOG).

3SeeGa.Law2006,p.3503;Ga.Law2008,p.3536.

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I. RevenuesThe revenue estimates outlined below include all major revenue sources a city

includingthestudyareawouldhavecollectedhaditexistedin2010andassessedtaxesandfeesatratessimilartoDeKalbCountyinthatsameyear.Incalculatingtheseestimates,weappliedmetricsusedinpriorresearchthatwereacceptedbystakeholdersinsomeofthemost recent incorporation studies. Thus, this report uses similar revenue estimationmethodologiesasthoseprovidedinbothGeorgiaStateUniversitys2007report,TheFiscalImpactonDeKalbCountywithPossible IncorporationofDunwoody,Georgia and theCarlVinson Institutes 2008 report, Revenue and Expenditure Analysis of a Proposed City ofDunwoody to the extent possible. Themethod for determininghowmuch revenuewasassignedascomingfromthestudyareaisdescribedinTable1.OnefactorworthyofnoteisthatthedatausedtogeneraterevenueestimationsdidnotincludethevalueoftherecentTown Brookhaven development on Peachtree Road in the study area because thepropertyiscurrentlyownedbytheDeKalbDevelopmentAuthority.Thus,thedevelopmentwas not counted as part of the commercial base of the study area in calculating thecommercial ratio used to estimate numerous revenues or in the estimation of propertytaxes.SeeAppendixBforfurtherexplanation.

Table1:StudyAreaRevenueEstimatesRevenueSource DataSource Amount

OccupationTaxesRatioofassessedvalueofcommercialpropertyinstudyareatoDeKalbunincorporatedarea $1,131,938

BeverageExciseTaxesRatioofassessedvalueofcommercialpropertyinstudyareatoDeKalbunincorporatedarea $497,457

PersonalPropertyTaxesRatioofassessedvalueofcommercialpropertyinstudyareatoDeKalbunincorporatedarea $431,917

Hotel/MotelTaxesRatioofassessedvalueofcommercialpropertyinstudyareatoDeKalbunincorporatedarea $317,964

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Hotel/MotelTaxes(restrictedtotourism)

RatioofassessedvalueofcommercialpropertyinstudyareatoDeKalbunincorporatedarea $211,796

BusinessLicensePoliceRatioofassessedvalueofcommercialpropertyinstudyareatoDeKalbunincorporatedarea $216,469

BusinessLicenseBeveragesRatioofassessedvalueofcommercialpropertyinstudyareatoDeKalbunincorporatedarea $159,346

BankSharesTaxesRatioofassessedvalueofcommercialpropertyinstudyareatoDeKalbunincorporatedarea $65,155

IntangibleRatioofassessedvalueofresidential&commercialpropertyinstudyareatounincorporatedarea $57,008

DevelopmentFundRatioofassessedvalueofresidential&commercialpropertyinstudyareatounincorporatedarea $522,500

ZoningandVarianceFeesandPermits

Ratioofassessedvalueofresidential&commercialpropertyinstudyareatounincorporatedarea $10,187

InsurancePremiumsRatioofpopulationinstudyareatoDeKalbunincorporatedarea $2,252,101

Fines&ForfeituresRatioofpopulationinstudyareatoDeKalbunincorporatedarea $1,961,669

StormWaterFundRatioofpopulationinstudyareatoDeKalbunincorporatedarea $1,455,897

MotorVehiclesTaxesRatioofpopulationinstudyareatoDeKalbunincorporatedarea $346,900

LawEnforcementConfiscatedMoniesFund

RatioofpopulationinstudyareatoDeKalbunincorporatedarea $241,034

ParkingandRentalRatioofpopulationinstudyareatoDeKalbunincorporatedarea $28,302

SaleofPrintedMaterialPolice

RatioofpopulationinstudyareatoDeKalbunincorporatedarea $27,348

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HomesteadOptionSalesTaxes(restrictedtocapital)

CalculationpursuanttoO.C.G.A.488104 $5,007,194

StateGrantCommunityDevelopmentBlockGrant

Averagerevenuefrom19Georgiacitiespopulationrangebetween30,00094,000from20052009 $294,636

MiscellaneousThisrepresentsanumberofsmallrevenuesources.SeeAppendixC. $13,743

FranchiseFeesCableRatioofpopulationinstudyareatoDeKalbunincorporatedarea $503,090

FranchiseFeesElectricEstimatefromGeorgiaPowerforthe30319zipcodeappliedpercapita $2,406,721

FranchiseFeesNaturalGas AdjustedEstimatefromAtlantaGasLight $248,483

FranchiseFeesPhoneAverageofpercapitarevenuefrom2010revenuesreceivedbyJohnsCreekandDunwoody $149,040

ReliesonFY2010dataunlessotherwiseindicated.SeeAppendixDforcountyrevenuedatadetail.

2010RealPropertyTaxes

MillageRate3.50

TaxCommissioner2010Digest $5,229,963

2011RealPropertyTaxesMillageRate6.39

TaxCommissionerPreliminary2011Digest $9,927,881

2010RealPropertyTaxesPenalties

Ratioofspecialdistrictpropertytaxestooverallpropertytaxesinstudyareaappliedagainstpenaltiesandinterestpaidonoveralltaxesinstudyarea $22,761

2011RealPropertyTaxesPenalties

Ratioofspecialdistrictpropertytaxestooverallpropertytaxesinstudyareaappliedagainstpenaltiesandinterestpaidonoveralltaxesinstudyarea $43,207

TotalRevenueEstimate $23,810,619 $28,528,983

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A. MethodologiesUtilizingRatiosofAssessedRealPropertyValueAnumberoftaxescurrentlycollectedintheunincorporatedareaofDeKalbCountyare

generatedsolelybycommercialactivity.Inordertoobtainestimatesofhowmuchrevenuewouldbegeneratedbythesetaxes,acomparisonwasmadebetweentheassessedvalueofcommercial property in the study area and the unincorporated area of the county.Assuming that the ratio of commercial real property value is a proxy for commercialactivity,thisratiowasappliedagainstactual2010collectionsforseveralrevenuesourceswhicharedescribedbelow.Actualcountyrevenuesusedtotabulatethedifferentrevenueestimations were provided by DeKalb County (revenues collected through December2010). Appraised values for the real property in the study area were provided by theDeKalbTaxCommissioner,andthetaxdigestvaluesforthecountysunincorporatedareawereprovidedbytheGeorgiaDepartmentofRevenue.Todeterminerevenuefromtaxesonpublicutilities, theratioof theassessedvalueofutilityproperty in thestudyarea to theassessed value of utility property in the unincorporated area was used; and, for heavyequipmenttaxes, thesameapproachwastakenutilizingtheratiofor industrialproperty.Table2illustratestheratiosofresidential,commercial,industrial,utilityandtotalassessedpropertyvalueofthestudyareatotheunincorporatedareainDeKalbCounty.

Table2:2010PropertyValuesinStudyAreaandUnincorporatedDeKalb StudyArea Unincorporated

DeKalbCountyPercentStudy

AreatoUnincorporated

AVResidentialProp $1,740,683,900 $11,864,535,712 14.67%AVCommercialProp $589,992,922 $4,753,114,617 12.41%AVCom&Res $2,330,676,822 $16,617,650,329 14.03%AVIndustrialProp $13,448,980 $960,614,331 1.40%AVUtilityProp $431,680 $297,959,250 0.14%

TotalAssessedValue $2,388,135,202 $17,347,388,488 13.77%

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OccupationTaxes

Occupationtaxesare leviedonpersonsandentitiesengaged inoccupationsor trades forprofitmaking purposes. DeKalb County levies an occupation tax in the unincorporatedarea.

AlcoholicBeverageExciseTaxes

Alcoholic beverage excise taxes are collected on individual retail sales of alcoholicbeverages.

PersonalPropertyTaxes

Personalpropertytaxesareleviedonpersonalpropertyownedbycommercialbusinesses.

Hotel/MotelTaxes

Hotel/moteltaxesarecollectedbasedonapercentageofthenightlyroomratechargedbyhotelswithinthejurisdictionofacityorcountythatleviesthetax.DeKalbCountyleviesatax of 5% of the nightly room rate. Pursuant to state law, however, only the revenuegenerated by a 3% taxmay be spent for general fund purposes; the remaining revenuemust be spent on activities promoting tourism, generally by contract with a nonprofit.Thus,someofthefundsidentifiedinthetablearerestrictedtothispurpose.C4NDverifiedthepresenceofatleast9hotelsinthestudyarea.ThesearelistedinAppendixE.

AlcoholicBeverageLicenses

InordertosellalcoholicbeveragesinGeorgia,aproprietormusthavebothalocalandstatelicensetoselleitherinpackagesorbythedrink.Locallicensesarerenewedannuallyandeachyearsrenewalisaccompaniedbypaymentofafee.

BusinessLicensesPolice

Thislineitemrepresentsfeesgeneratedbybackgroundchecksthatarerequiredtoobtainlicenses for various locallyregulated activities (e.g. alcoholic beverage pouring permits,

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taxicab licenses, etc.). Added to this figure is the anticipatedpermit revenue fromadultorientedbusinesses.

BankSharesTaxes

Citiesandcountiesarepermittedto levya taxondepository financial institutionshavingofficeslocatedintheirrespectivejurisdictions.

IntangibleTaxes

Intangibletaxes(recordingtaxes)arecollectedonpropertythatissoldatthetimeitsdeedis recorded. This number was obtained by applying the ratio of the assessed value ofcommercial and residential property in the study area to the assessed value of thecommercialandresidentialpropertyintheunincorporatedspecialtaxdistrictagainsttheamountofrevenuecollectedbythecountyintheunincorporatedarea.

DevelopmentFund

Thisamount represents fees charged forpermits related todevelopment (e.g., plumbing,electrical,HVAC,andbuildinginspections).

ZoningandVarianceFeesandPermits

This figure represents fees charged of applicants for zoning changes and variances. Thisfigurewasobtainedbyapplyingtheratioofassessedvalueofcommercialandresidentialproperty in the study area to the unincorporated area against the revenue generatedbytheseactivitiesintheunincorporatedarea.

B. MethodologiesUtilizingRatiosofPopulationoftheStudyAreatotheUnincorporatedArea

Anumberofrevenuesourcesdependmoredirectlyuponthenumberofindividualsengagingincertainbehaviorssuchasthepurchaseofinsurance,watchingcabletelevision,owning a car, and committing traffic offenses. For these revenue sources, assumptionsweremadethatthesebehaviorsarefairlyconstantacrosstheunincorporatedpopulationof DeKalb County, and thus the ratio of the population of the study area to the entire

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unincorporated area was applied to the actual revenues. Table 3 gives the populationfiguresforthestudyareaandunincorporatedDeKalbCounty.

Table3:2010PopulationFiguresforStudyAreaandUnincorporatedDeKalb StudyArea Unincorporated

DeKalbCountyPercentStudy

AreatoUnincorporated

Population 49,188 562,731 8.74%MedianHouseholdIncome

$56,231 $51,957PovertyRate 12.2% 14.5%

PopulationfiguresforthestudyareaweresuppliedbytheGeorgiaGeneralAssemblyOfficeofCongressionalandLegislativeReapportionment;otherfiguresforpopulations,medianhouseholdincome,andpovertyratecamefromthe2010CensusandtheAmericanCommunitySurvey,20052009estimatesutilizing2010Blocksand2000BlockgroupsthatapproximatedthestudyareaforACS0509data.InsurancePremiumsTaxInsurancepremiumstaxesarecollectedonpolicieswrittenforbothpropertyandcasualtyand life insurancepoliciespurchasedby those insuredwithin the jurisdictionofacityorunincorporated areas of a county. The figure given above is based on the ratio of thepopulationofthestudyareatothepopulationoftheunincorporatedarea.

FinesandForfeituresTraffic offenses and certain misdemeanor offenses may be adjudicated in county level(recorders) and city level (municipal) courts and fine revenue from these offenses isretainedbythelocalgovernmentwithjurisdiction.Anassumptionwasmadethatratesofpettyoffensesof thisnature takeplaceona fairlyconsistent levelacrossunincorporatedDeKalb,andthepopulationratiowasappliedto2010actualrevenue.

StormWaterFeeDeKalbCountycollectsastormwaterutilityfeeinordertodefraythecostsassociatedwithinfrastructure to handle storm water runoff. The fees imposed are designed to beproportionate to the amount of runoff created by impervious surfaces. The 2010 ratescharged by DeKalb County were $48 per single family residential dwelling annually.

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Multipledwellingunitsareeachchargedhalfofthatrateannually,andallotherimprovedpropertiesarechargedatarateof$48per3,000squarefeetofimpervioussurface.Astheamount of impervious surface in the study area is unknown at this time as well as theactual collections from the study area, the population ratio was used here as a roughapproximationofdevelopmentand,consequently, reflectiveof theamountof impervioussurface.Becausestormwaterutilitiesoperateasanenterprisefundandbecausethefeescollected must be used for storm water utility purposes, this figure was also used tocalculateexpenditures.

MotorVehiclesMotorvehiclesaresubjecttoanadvaloremtaxleviedontheirassessedvalue.Thefigureaboveisderivedbyapplyingthepopulationratioandassumescarownershipisconsistentacrosstheunincorporatedarea.

LawEnforcementConfiscatedMoniesFundThis fund represents revenues received from money confiscated in drug cases. Anassumptionwasmadethatpoliceseizureofmoneyfromillegaldrugtraffickingwouldbeproportionatetopopulation.

ParkingandRental

This figure is derived frommiscellaneous revenues collected in the unincorporated areafrom a variety ofminor revenue sources likes parking and rental fees that a citymightexpecttosimilarlycollectovertime.

SaleofPrintedMaterialPolicePolice departments are able to charge fees for copies of police reports, incident reports,motorvehicleaccidentreportsandothermiscellaneousmaterials.Itisassumedthattherewouldbesomedemandforthesametypesofdocumentsfromamunicipality.

C. HomesteadOptionSalesTax(restrictedtocapital)

The Homestead Option Sales tax is a one cent countywide sales tax originallyenacted to provide for county property tax rollback that is levied on the sales of most

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goods.Ithasbeenamendedovertimetoallowuptotwentypercentofitsproceedstobespentoncapitalneedsandtoprovide thatnewly incorporatedcitiesreceiveaportionofthe proceeds from the countywide levy to use for their capital needs. A very specificformula found in O.C.G.A. 488104 provides for the calculation of the amount to bedistributedtoanewmunicipalitybasedonboth the levelof funds tobespent inagivenyear on capital as determined by the county and the relative size of the residentialhomesteadrealpropertytaxdigestsoftheapplicablelocalgovernments.TheintentbehindthestatutorychangesthatallowcitiesinDeKalbCountytoreceivedistributionsseemstoreflectadesiretoequalizethebenefitof thetaxrollbacktomunicipaltaxpayersthatpayproperty taxes tocities insteadof thecounty forcertainservices.Thus, the equalizationpayments made to cities under the statute are proportional to the size of the citysresidentialhomesteaddigest.

ToarriveatamoreaccurateapproximationofayearsworthofHOSTdistributionstoacitycomprisedof thestudyarea, theaveragewastakenof twocalculations.Becausethereareseveralvariables involved in theHOST formulaandbecausesales taxrevenuesare subject to variations caused by economic upturns and downturns, overall proceedsfrom two tax yearswere used to calculate likely distributions to a city comprised of thestudyarea.The2009proceedsoftheHOSTtaxwereapproximately$83,000,000andthe2010proceedswereapproximately$91,000,000.

Another variant in the HOST proceeds calculation is the capital factor set by thecounty, which determines the amount of the overall proceeds that can be spent by thecounty on capital needs. Using themost recent HOST certification from the DeKalb TaxCommissioner to establish the total homestead digest for the county and each qualifiedmunicipality, a calculation of the 2009 HOST proceeds amount applied against a capitalfactorof0(scenario1)wasaveragedwithacalculationof2010proceedsappliedagainsta20%capitalfactor(scenario2).Thehomesteadtaxdigestforthestudyareawascalculatedbased on tax information provided by the DeKalb Tax Commissioners Office. CVIOGcalculated the total amount of distributions likely due to all qualified municipalities todetermine the total amount of equalization payments to deduct from the excess capitalproceeds in scenario 2. Appendix F contains these two separate calculations using the

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spreadsheetutilizedbytheGeorgiaDepartmentofRevenueaswellasthemostrecentcountycertificationletter.

It should be noted that distributions are made from the previous years taxcollections,soanewcitywouldhavetowaittobegincollectingthisdistribution.Priortothe issuance of the report, but after the issuance by the county of its most recentcertification letter (required by O.C.G.A. 488104), the Georgia Attorney General hadinstructedtheGeorgiaDepartmentofRevenuetousethemaintenanceandoperationstaxdigestinsteadofthebondtaxdigest.Thisaccountsforsomeofthedifferencesbetweenthestatements made in the countys certification letter and the figures used in thecalculations.4

D. CommunityDevelopmentBlockGrantCommunityDevelopmentBlockGrants(CDBG)areawardedbythefederalandstate

governmentstolocalgovernmentsmeetingcertaincriteria.Toobtainanestimateforwhatacitycomprisedofthestudyareamightexpecttoreceivefromsuchgrants, fiveyearsofawardsfor19differentGeorgiacitiesranginginpopulationfromapproximately30,000to93,000wereaveragedintoapercapitaamount,adjustedforinflationandappliedagainstthepopulationofthestudyarea.GrantsfortheCityofAlbanywerenotincludedinthefinalcalculationbecausethegrantamountsweresolargeincomparisontotheotherrecipientsthatitappearedtobeastatisticalanomaly.ItisalsoworthyofnotethatneitherDunwoodynorJohnsCreekhasreceivedanyCDBGfundssincetheirincorporation.Boththefactthatthecitiesarenewandthat theybothhave lowpovertyratesprobablycontribute to this.Because thepoverty rate in the study area is greater than that of these two comparisoncitiesmakes itmore likely that itcouldbeaCBDGrecipientatsomepoint in the future.5ThedatausedforthesecalculationsisshowninAppendixG.4At the timeof issuanceof the report, theGeorgiaDepartmentofRevenuewas seeking clarification as towhether touse the entire countyhomestead taxdigest or the totalmunicipalhomestead taxdigest as theproper denominator in the step 3 calculation applicable in instances when the capital proceeds do notgenerateenoughforallthecitiestobepaidanequalizationpayment.Becausethestatuteutilizesthetermmunicipality,thetotalmaintenanceandoperationshomesteadtaxdigestforallmunicipalitiesandthestudyareawasusedas thedenominator inourcalculations.Using thecounty totaldigest in thisscenariowouldreducethemunicipaldistributions.5FormoreinformationonCDBGcriteria,see:http://portal.hud.gov/hudportal/HUD?src=/programoffices/commplanning/communitydevelopment/programs.

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E. FranchiseFeesSomerevenuesourcesareunique tomunicipal corporations inGeorgia.Franchise

fees are essentially rental compensation by a private utility company for use of a cityspublicrightsofway.Forestimatingtheelectric,naturalgas,andtelephonefranchisefees,theauthors consultedwith theprivate regulatedutilities for assistance inestimating thelikelyrevenues.

FranchiseFeesCable

Federal and state lawallows cities and counties to enter into franchise agreementswithcablecompaniestocompensatethelocalgovernmentfortheiruseofthepublicrightsofway. These fees are usually 5% of the revenue derived from cable television services.Assuming cable television viewership is consistent across the unincorporated area, theratio of the population of the study area to the unincorporated area applied against theactualcablefranchisefeerevenuesresultsinthefigureabove.

FranchiseFeesElectricFranchise fees for electric utilities are the result of contracts between municipalcorporations and electric utility providers that occupy a citys rightofway. Theseagreements typically provide that 4%of the gross sales of electric powerwithin a cityslimitslesssalestaxesandfuelcostsbepaidannuallytothecitytocompensatethecityforuseandoccupancyofpublicproperty.ThesoleelectricutilityproviderinthestudyareaisGeorgiaPower.PursuanttorecentrulingsbytheGeorgiaPublicServiceCommission,halfof the annual franchise feepaidbyGeorgiaPower tomunicipal corporations is collectedfromtheratebaseofallGeorgiaPowercustomersstatewide(asacostofdoingbusiness)andtheotherhalf iscollectedasa feesolelyon theelectricbillsofcustomerswithin themunicipalitycollectingthefee.Thus,collectionoftheelectricfranchisefeewouldresultinanincreaseoflessthan2%intheelectricbillsofcitycustomers.

Georgia Powers account records are organized by zip code and so theywere unable toprovideanexactestimateof theanticipatedannual franchise fee thatwouldbecollectedbased on the gross saleswithin the study area. Theywere able to provide an estimate,

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however, for the30319zip code.The30319zip codecontains the largestportionof thestudy area, but also includesportionsof theCity ofAtlanta. The southernportionof thestudyareaalsoincludesportionsofseveralotherzipcodes.

Thus, to achieve theestimated figure above,GeorgiaPowers estimate for the30319 zipcodeof$1,880,000wasdividedbythenumberofpersonsidentifiedaslivinginthe30319zipcodebytheU.S.BureauoftheCensus,38,423,toobtainapercapitaamountthatwasthenappliedagainsttheestimatedpopulationofthestudyarea.

FranchiseFeeNaturalGasAtlantaGasLightistheonlynaturalgasdistributionutilityoccupyingpublicrightsofwayin the study area. Franchise fees paid tomunicipal corporations are paid out of the ratebaseofallAGLcustomersasacostofdoingbusiness.AGLprovidedanestimatedfranchisefee of $260,452 based on identification of the number of customers in a slightly largerstudyarea than theone included in this study.Theyprovided theestimatebasedon the20102011 franchise fee rate applied against the annual amount of usage by thosecustomersfromSeptember2009throughAugust2010.

Because a new estimate for the final study area could not be obtained prior to thecompletion of the report, CVIOG adjusted down the estimate provided byAGL. The areawhichCVIOGaskedAGLtousetocalculatetheirestimatecontainedanadditional123taxparcels and 575 more people than the final study area. Even though all 575 peopleprobablydidnotrepresentindividualcustomers,CVIOGadjusteddownAGLsestimateasifeach person represented a customer in order to assure that the resulting adjustmentrepresentedamoreconservativerevenueestimate.

FranchiseFeesPhone Anattemptwasmade toobtainanestimate fromAT&T for theanticipated franchise feefromlandlinetelephoneserviceinthestudyarea.Foranumberofreasonsrelatedtotherapidly changing pace of the telephone industry, they were reluctant to provide anestimate.Sinceonlylandlinetelephoneservicerequiresoccupancyofthemunicipalrightofway,movementawayfromlandlineservicetointernetbasedandcelltelephonyservices

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ismaking thisadiminishingrevenuesource formunicipalcorporations.Thus, this figurewasobtainedbyaveragingthepercapita2010telephonefranchisefeerevenueofthecitiesofDunwoodyandJohnsCreekandapplyingagainstthepopulationofthestudyarea.

Table4:CityandFiscalYearBudget Revenue PerCapitaJohnsCreekFY10 $201,448 2.63DunwoodyFY10 $158,608 3.43AveragePerCapitaRevenue 3.03StudyAreaRevenueEstimate $149,040

F. RealPropertyTaxes

The figures givenhere represent theamountof realproperty taxesbeingpaidbystudyarearesidentstothecountyfortheservicesbeingprovidedthroughcountyspecialservicetaxdistricts.Thesespecialdistrictservicesincludepolice,roadsmaintenance,parksand recreation, and stormwater systems.6 In order to allow for comparison of availablerevenues at existing levels of taxation, these figures were used. It should be noted thatbecause statutory county homestead exemptions and the Homestead Option Sales Taxcreditmustbeappliedtothetaxablevalueofresidentialhomesteadpropertytodeterminethe amount of revenue generated by application of a particular millage rate in countyspecialdistricts, this specificmillageratedoesnotdirectlyequate toamunicipalmillagerate. In otherwords, themethodutilizedhere demonstrates the amount of property taxrevenuebeinggeneratedinthestudyareaforthecountythatwouldbecomeavailabletoamunicipality that took over the provision of those municipal services currently beingprovided by the county if the amount of property tax collections remained constant butwasinsteadcollectedbyacity.

2010ThemillageratefortheunincorporatedspecialtaxdistrictinDeKalbCountyin2010was3.5mills. The taxable assessed value from the 2010 digest for the study area generated$5,229,963 in property tax revenue for the unincorporated special services tax districtbasedonthismillagerate.

6SeeGa.Law1982,p.4396,andHB607,effectiveMay11,2011.

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2011Recentstatutorychangeshaverequiredthatpoliceservicesbebrokenapartfromtheotherspecialservices taxdistrictservicesandbilledasaseparate line item.7The2011millagerateforthepoliceservicesthatwerepreviouslyincludedinthespecialservicestaxdistrictis5.94millsandthemillageratefortheremainingunincorporatedspecialservicesis .45mills. Together, these two millage rates equal 6.39 mills and represent services fundedfrom the previous unincorporated special tax district. The 2011 figure is based on 2011taxable assessed value figures, identification of homestead exemptions, value of thehomesteadexemptionandmillageratesprovidedbytheTaxCommissioner,aswellastheapplicationoftheHOSTtaxcredit.8Whilemostoftherevenuesusedinthereportdrawon2010revenues,thechangesinmillagerate,digest,andlawsuggestedaseparatecalculationof the 2011 potential revenues bemade. It should be noted that the 2011 property taxdigestdatausedtoestimatetheamountofpropertytaxrevenuestobegeneratedonthecurrent6.39millageratewereobtainedfromtheTaxCommissionerinJulyof2011anditis,therefore,likelythatitdoesnotreflectcompletedtaxappeals.9

PenaltiesForeachyears2010and2011realpropertytaxrevenue,theratioofpenaltiesandinterestcollectedinthestudyareaagainstalltaxescollectedinthestudyareawasappliedagainstthe2010and2011specialdistrictrevenues,respectively.

7SeeHB607,effectiveMay11,2011.8TheHOSTtaxcreditwascalculatedbasedonaHOSTfactorof47.3%.9Thiscalculationassumesfullcollection.

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II. Expenditures

Theexpenditureestimatesbelowarebasedprimarilyonexpendituresincurredbycomparablegovernmentstoprovideservicessimilartothosecontemplatedtobeprovidedbyacitycomprisedofthestudyarea.Incalculatingtheseestimates,CVIOGfirstestablishedtwo primary comparable governments, the cities of Dunwoody and Johns Creek. Thesecitieswereselectedbasedonseveralfactors.Bothcitiesarenew,JohnsCreekwasofficiallyincorporated inDecember of 2006 andDunwoody inDecember of 2008. Both cities arelocated in the north metro Atlanta area and are close in population to the study area.Dunwoody, like the study area, is wholly contained inside the limits of DeKalb County.Because the twomain comparison governments had lower poverty rates and, therefore,mightnothavecomparablecrimeissues,anadditionalcomparisoncity,Smyrna,wasaddedforpurposesof comparingcosts foroperatingapolicedepartment.Smyrnaspopulation,poverty rate and median household income are very similar to the study area, and itslocationinthemetroAtlantaareaallmakesitagoodcityforpurposesofcomparingpoliceservices.ProfiledataforthestudyareaandthecomparisoncitiesisgivenbelowinTable5.

Table5:2010DemographicProfileofStudyAreaandPrimaryComparisonCities StudyArea JohnsCreek DunwoodyPopulation 49,188 76,728 46,267RaceWhite 51.5% 59.9% 64%RaceBlack 11.4% 9% 12.3%RaceHispanic 30.2% 5.2% 10.3%RaceOther 7% 25.8% 13.3%MedianIncome $56,231 $108,279 $83,046Poverty% 12.2% 3.2% 4.6%PopulationfiguresforthestudyareaweresuppliedbytheGeorgiaGeneralAssemblyOfficeofCongressionalandLegislativeReapportionment;other figures forpopulationsandmedian incomeandpovertyratecamefromthe2010CensusandtheAmericanCommunitySurvey,20052009estimatesutilizing2010Blocksand2000BlockgroupsthatapproximatedthestudyareaforACS0509data.

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Formostofthecostestimatesgiven,thefigureswerederivedbyaveragingthepercapitacostsofexpendituresmadebythetwocomparisoncitiesforboththefiscalyearsof2009and2010.10 In some instances, itwasnotpossible toallocatecosts tooneormoredepartments because each city had entered into contractswith private providerswherecosts for various serviceswere aggregated together.Todeterminehowbest to interpretthebudgetandotherfinancialdocumentsofeachcity,facultyfromCVIOGinterviewedtheCityManagersandtheFinanceDirectorsofbothDunwoodyandJohnsCreekandclarifiedinformation with the City Clerk of Smyrna. The explanation for how each estimate wasderivedisincludedbelow.ThesummaryoftheexpendituresisgiveninTable6below.ItisimportanttonotethatJohnsCreekutilizedasoleprivatecontractorduringthefiscalyearsincluded in the report. The private contractor did not allocate its invoiced costs to anyparticular department of the city and thus city staff did its best to approximate theseallocationsintheirbudgetandotherfinancialdocuments.

Todetermineservicesonwhichtoestimateexpenditures,itwasassumedthatacitycomprised of the study area would provide the services currently provided to theunincorporated area via the unincorporated special tax districts. This includes police,parks,roadmaintenance,andstormwater. Itwasalsoassumedthatanewcitywouldberesponsibleforplanningandzoning;butthatfireandrescue,E911,sanitation,andothergeneral countywide serviceswould continue tobeprovidedby the county.11Thismeansthatnewcityresidentswouldcontinuetopaygeneralcountytaxes,thefireservicedistricttax, assessments for Grady Hospital, and any existing unincorporated or countywidebonded indebtedness just as they are now.However, the unincorporated special districttaxeswouldbeeliminatedandreplacedbyamunicipalmillagerate.12

10CityofDunwoodyFY2010annual operatingand capital budget, usedFY2009amendedbudget andFY2010approvedbudgetfigures.JohnsCreekFY2011ProposedBudget,usedFY2009actualexpendituresandFY2010midyearrevisedbudgetfigures.CityofSmyrnaFY2011budget,usedFY2010budgetfigures.11Thiswouldalso includegeneral countygovernmentoperations,allhealthandwelfareservices, all courtand judicial services (except the county recorders court whose function would be supplanted by amunicipalcourtinanewlyincorporatedcity),animalcontrol,publiclibraries,andtheservicesoftheofficeofthesheriff,thetaxcommissioner,andthetaxassessor.12 The provision of public school services and taxes levied to fund those services by the DeKalb Board ofEducationwouldbeunaffectedbymunicipalincorporation.

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Table6:SummaryofExpenditureEstimatesCityCouncil $215,093CityManager $408,260GeneralOperations/AdministrativeServices $2,035,399Finance $1,804,216LegalDepartment $280,372CityClerk $151,991HumanResources $137,726CommunityDevelopment $2,701,897DebtInterestfromTAN $101,327FacilityLeases $592,592FacilityMaintenance $34,923MunicipalCourt $295,620Parks* $1,376,492Police $5,568,082PublicWorks $3,610,978StormWater $1,455,897Tourism $211,796ContingencyFund $328,576TotalOperatingCosts $21,311,237AnnualCapitalforRoads&DrainageandParkAcquisition $2,940,323PoliceCapitalandGeneralStartUp** $831,682TotalAnnualExpenditures $25,083,242DeficitBasedonRevenueEstimatesUsing2010PropertyTaxes $1,272,623SurplusBasedonRevenueEstimatesUsing2011PropertyTaxes*** +$3,445,741

*C4NDaskedforanestimationofthecostsassociatedwithasuperlativelevelofparksmaintenanceservice.Thisisdiscussedinmoredetailintheparkssectionbelow.** This figure represents costs for police vehicles andpolice equipment, aswell as furniture and financialsoftware purchased for general government purposes in Dunwoody. These costs are amortized over thecourse of five years. Because police capital costs arenot included elsewhere, these are treated here as anongoingannualcapitalexpense;seepolicecapitalandgeneralstartupbelow.***Basedon2011PreliminaryPropertyTaxDigestData.

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CityCouncilAt the instruction of C4ND, an assumption was made that there would be six councilmembersandonemayor.

CityandFiscalYearBudget Dept.Budget(1Mayor,6CouncilMemberspercity)

JohnsCreekFY09 $188,888JohnsCreekFY10 $277,617DunwoodyFY09 $153,283DunwoodyFY10 $240,582StudyAreaEstimatewith1Mayor,6CouncilMembers$215,093CityManager

These costsweredeterminedbyaveraging the2009and2010 fiscal yearsofDunwoodyand JohnsCreek.Thesebudget lines included costsnot just for salaries andbenefits butalso for studies and other discretionary items typically paid for out of a citymanagersbudget.

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $681,321 $8.88JohnsCreekFY10 $1,092,463 $14.24DunwoodyFY09 $237,139 $5.13DunwoodyFY10 $229,278 $4.96AveragePerCapitaExpenditure $8.30StudyAreaExpenditureEstimate $408,260

GeneralOperations/AdministrativeServices

Thisfigurerepresentsongoingoperationalcosts,includinginformationtechnology.Thesefigures do not include property and liability insurance costs which are included underFinance. For Johns Creek, these figures also include human resources costs which werebroughtinhouseduringfiscalyear2010.Aspreviouslymentioned,JohnsCreekscontract

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withtheprivatesectorproviderdidnotallocatecoststoanyparticulardepartmentofthecity.Soforthisfigureandothersinthereport,specificcostallocationisanapproximation.

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $5,529,214 $72.06JohnsCreekFY10 $5,071,573 $66.10DunwoodyFY09 $765,755 $16.55DunwoodyFY10 $499,000 $10.79AveragePerCapitaExpenditure $41.38StudyAreaExpenditureEstimate $2,035,399

Finance

This figure represents all traditional finance functions: accounting, purchasing, contractadministration, risk management, accounting and payroll. It also includes property andliability insurance.FiscalYear2009 forDunwoodywasexcludedbecausecostscouldnotbeclearlyallocatedtothedepartment.

LegalServices

This figure reflects theper capitaaverageof two fiscal years fromboth JohnsCreekandDunwoody. Fees related to ongoing litigation against an adult novelty business weredeductedfromtheJohnsCreekexpenditures.

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $313,881 $4.09JohnsCreekFY10 $425,000 $5.54DunwoodyFY09 $250,000 $5.40DunwoodyFY10 $359,000 $7.76AveragePerCapitaExpenditure $5.70StudyAreaExpenditureEstimate $280,372

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $1,771,495 $23.09JohnsCreekFY10 $1,775,401 $23.14DunwoodyFY10 $2,951,927 $63.80AveragePerCapitaExpenditure $36.68StudyAreaExpenditureEstimate $1,804,216

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CityClerk

Thisfigurerepresentstwofiscalyearsfrombothcitiesaveragedpercapitaandappliedtothestudyareapopulation.

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $135,455 $1.77JohnsCreekFY10 $188,115 $2.45DunwoodyFY09 $208,699 $4.51DunwoodyFY10 $168,554 $3.64AveragePerCapitaExpenditure $3.09StudyAreaExpenditureEstimate $151,991

HumanResources

This figureonly includesonebudgetyear foreachcomparisoncitybecause in fiscalyear2009humanresourcescostswereassignedtogeneraloperationsinJohnsCreekandtothefinancedepartmentinDunwoody.

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY10 $243,183 $3.17DunwoodyFY10 $112,000 $2.42AveragePerCapitaExpenditure $2.80StudyAreaExpenditureEstimate $137,726

CommunityDevelopment

This figure includes costs for planning and zoning, building inspections, and codeenforcement.Itrepresentsanaverageoftwofiscalyearsforbothcitiesaveragedpercapitaandappliedtothestudyareapopulation.

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $5,287,754 $68.92JohnsCreekFY10 $4,827,732 $62.92DunwoodyFY09 $1,813,500 $39.20DunwoodyFY10 $2,251,500 $48.66AveragePerCapitaExpenditure $54.93StudyAreaExpenditureEstimate $2,701,897

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DebtInterestfromTAN

TaxAnticipationNotesareessentiallyloanstakenoutandrepaidwithinthesamecalendaryeartoassistwithcashflowgiventhatexpendituresoccurthroughouttheyearandcertaintaxrevenuesarriveonlyatgiventimesoftheyear.DunwoodymanagedtoavoidtakingoutaTANbyreceivingfranchisefeepaymentsfromanelectricutilityupfront,andJohnsCreekwasabletoavoidutilizingmuchofthefundstheywereauthorizedtoborrow.InordertohavesomeideaofthelikelycostsassociatedwithinterestonaTANshouldanewcityneedtoutilizeone, the costsbelow for fiscalyear2009were taken from themidyearbudgetbecausetheactualendofyearinterestpaidwassolow.

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $175,000 $2.28JohnsCreekFY10 $140,767 $1.83AveragePerCapitaExpenditure $2.06StudyAreaExpenditureEstimate $101,327

FacilityLeases

Both Johns Creek and Dunwoody lease the space that houses their city hall and policedepartments.Thisfigurerepresentsanaverageof2010fiscalyearcostpersquarefootforJohnsCreekandDunwoodyappliedagainsttheaverageamountofsquarefootageleasedbythetwocities.

CityandFiscalYearBudget LeasedSpaceSq.Ft. PerCapitaSq.Ft.JohnsCreekFY10 52,000 .68DunwoodyFY10 25,000 .54AverageSquareFootage .61StudyAreaEstimateofSquareFootageNeeded 30,005

CityandFiscalYearBudget Dept.Budget PerSq.Ft.JohnsCreekFY10 $1,138,346 $21.89DunwoodyFY10 $440,000 $17.60AverageCostperSquareFoot $19.75StudyAreaExpenditureEstimate $592,592

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FacilityMaintenance

Although the leases covered almost all maintenance costs, this figure representsexpendituresmade by Dunwoody in fiscal year 2010 to provide air conditioning duringmunicipal court and city council meetings that were held after regular business hours.Thesecostswerefiguredpercapitaandappliedtothepopulationofthestudyarea.

MunicipalCourt

This figure represents costs for two fiscal years for each city averaged per capita andappliedtothestudyareapopulation.

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $419,017 $5.46JohnsCreekFY10 $505,858 $6.59DunwoodyFY09 $271,947 $5.88DunwoodyFY10 $281,981 $6.09AveragePerCapitaExpenditure $6.01StudyAreaExpenditureEstimate $295,620Parks

Inordertocalculateanexpenditureestimateforparkmaintenance,CVIOGdeviatedfromthe report methodology employed for estimating other expenditures. This was for tworeasons.First,utilizingthestudymethodologytodetermineparksmaintenancecostswastoodifficultbecauseDunwoodydidnottakeownershipoftheparksinitscityuntil fiscalyear2010afterthepassageofageneralstatuteanditwasdifficulttodeterminetheactualacreage of parks that are maintained by Johns Creek. Second, C4ND wanted CVIOG toinvestigate the costs that might be associated with parks maintenance in a city with asuperbreputationforexcellentserviceinparksmaintenance.

DeKalb County provided detailed information identifying the costs associated withmaintaining the parks within the study area and estimated the annual net cost to be$480,140.SeeAppendixH.C4NDinventoriedalltheparks,recreationcenters,andpoolsinthestudyareaandthefollowingchartliststheparksandtheiramenities:

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Table7:StudyAreaParkAmenities

Park Acres Fields/Courts PoolsRecCenters/

Picnicshelters

PlaygroundStructures

AshfordPark 32tennis

1basketball 1lg.rental 2

BlackburnPark 49.52baseball3soccer

18lightedtennis 1picnic 1

BriarwoodPark 182lightedtennis 13900

squarefoot110,000sq.

ft.1picnic

1

BrookhavenPark 9 1multiuse 3picnic 1GeorgianHillsPark 7

1multiusebasketball

1picnic 2

LynwoodPark 172tennis

2multiuse12700

squarefoot1reccenter2picnic

3

MurpheyCandlerPark 135

12lightedbaseball2lightedfootball2tennis

15200squarefoot

14picnic4lg.rental

4

SkylandPark 112tennis

1multiuse 1picnic

3Total 249.5

Because the City of Roswell has been recognized on multiple occasions for its parks inrecentyearsby theGeorgiaParksandRecreationAssociation13andbecause it is locatednear the study area in northern metro Atlanta, it was chosen as a comparison for thepurpose of determining what level of costs might be associated with maintaining asimilarlyhighservicelevelfortheparksinthestudyarea.

CityandFiscalYearBudget Dept.Budget Acres CostPerAcreRoswellFY10 $5,059,432 917 $5,517RoswellFY09 $5,139,945 917 $5,605AveragePerAcreExpenditure $5,561StudyAreaExpenditureEstimate 249.5 $1,376,492

13Seehttp://roswell.patch.com/articles/roswellparkswinbestinstateawardagain.

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Thedifferencebetween theDeKalbCountyestimate for thecurrent levelofmaintenanceand this aspirational expenditure is $896,352. The aspirational amount was used incalculatingthetotalestimatedcostsinTable6.Neitherofthecomparisoncitiesmaintainsarobust recreation program, relying instead on nonprofits to serve this function, it wasassumedacitycomprisedofthestudyareawouldoperatesimilarly.

PolicePolice operational expenditures for the twomost recent fiscal years of Johns Creek andDunwoodyandthetwomostrecentfiscalyearsforSmyrnawereaveragedpercapitaandappliedtothepopulationofthestudyarea.ThemostrecentfiscalyearsfromSmyrnawereaddedforthereasonsarticulatedabove.

2010DemographicProfileStudyAreaandSmyrna StudyArea SmyrnaPopulation 49,188 51,271MedianIncome $56,231 $55,468Poverty% 12.2% 13.7%PopulationfiguresforthestudyareasuppliedbytheGeorgiaGeneralAssemblyOfficeofCongressionalandLegislativeReapportionment;otherfiguresforpopulations,medianhouseholdincome,andpovertyratefromthe2010CensusandtheAmericanCommunitySurvey,20052009estimatesutilizing2010Blocksand2000BlockgroupsthatapproximatedthestudyareaforACS0509data.Because costswerenot allocatedbetween regular police services and costs of operatingSmyrnasjailinitsFY2009budget,figuresfromitsFY2011budgetwereusedinordertoprovide twoyearsof costs forSmyrna.No jail costsare included in this figure, as itwasassumedthatanewcitywouldnotmaintainitsownjailandthatitwouldenjoyasimilararrangementwiththeDeKalbCountySheriffasdoesDunwoody.InDunwoody,a10%fineaddon is collectedoncases thatgo tomunicipal courtandsent to thecounty topay forhousing needs for any municipal prisoners. Municipal prisoners would only be thoseawaiting adjudication or serving a sentence imposed by the citys municipal court. It isworthyofnotethatwithinthesecosts,JohnsCreekmaintains3k9units,participatesinacooperative intergovernmental SWAT team, and employs 34 people with forensic

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responsibilities and an internal affairs person. Dunwoody contributes one person to acooperativeintergovernmentalSWATteam,andemploysonefulltimenarcoticsperson.14

CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $7,412,617 $96.61JohnsCreekFY10 $8,422,612 $109.77DunwoodyFY09 $5,104,799 $110.33DunwoodyFY10 $4,907,925 $106.08SmyrnaFY10 $6,542,359 $127.60SmyrnaFY11 $6,605,084 $128.83AveragePerCapitaExpenditure $113.20StudyAreaExpenditureEstimate $5,568,082PublicWorksToestimatecostsforpublicworks,whichwouldprimarilyberoadandbridgerepairandmaintenance,weobtainedthenumberof localroad lanemileswithin thestudyareaandforthecitiesofDunwoodyandJohnsCreekfromtheInformationTechnologyandOutreachServices Division of CVIOG through use of GIS mapping technology. Fiscal yearexpenditures for2009and2010 forbothcitieswerecalculatedper lanemile15and thenaveraged.Thatamountwasmultipliedagainstthenumberoflanemilesinthestudyarea.JohnsCreek figuresdemonstrateamuchhighercostper lanemileduetoamassiveroadwideningprojectthattookplaceduringthefiscalyearsreviewed.Italsoshouldbenotedthat while costs associated with street lights are included in Dunwoodys expenditures,revenues fromresidential street light assessments in the studyareawerenotestimated.Thus, theaverageper lanemileoperatingcostsbelowshouldbe robustenough tocovercostsassociatedwithsignificantroadimprovements.

14 DeKalb Countymaintains use of a police helicopter and other specialized resources thatmight only beavailabletothecityonacostorintergovernmentalagreementbasisuponincorporation.15GDOTtotallanemileage,2009form499.(Citymaintainsallcountyroads.)

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CityandFiscalYearBudget Dept.Budget LaneMiles CostperLaneMileJohnsCreekFY09 $6,958,797 306.41 $22,711JohnsCreekFY10 $6,546,538 306.41 $21,365DunwoodyFY09 $1,722,999 272.80 $6,316DunwoodyFY10 $2,693,576 272.80 $9,874AverageCostPerLaneMile $15,067NumberofLaneMilesinstudyarea 239.67StudyAreaExpenditureEstimate $3,610,978StormWater

Stormwater utilities are enterprise funds designed to be funded by a fee structure thatapproximates their cost. Since the revenueestimate generated a largernumber than theexpenseestimatecalculatedbelow,thelargeramountwasusedinTable6abovetoinsureanoverallconservativeapproachtoestimatingexpenditures.Becausepropertyownersinthe study area are currently paying the fee structure imposed by DeKalb County andbecauseDunwoodyhasmaintainedthesamefeestructureimposedbyDeKalbpriortoitsincorporation,Dunwoodyfiguresareshownbelowforillustrativepurposes.

CityandFiscalYearBudget Dept.Budget PerCapitaDunwoodyFY09 $1,199,941 $25.94DunwoodyFY10 $1,199,941 $25.94AveragePerCapitaExpenditure $25.94StudyAreaExpenditureEstimate $1,275,937

Tourism

Becauseaportionofthehotel/moteltaxisdedicatedtobespentontourismbystatelaw,many jurisdictions tend touse thatportionof the tax for their tourismbudget.Thus, theestimatedrevenuefigureforhotel/moteltaxesrestrictedtotourismhasbeenusedastheestimatedexpenditureamount.

ContingencyFundThese are funds used by cities to cover unforeseen expenditures. Dunwoody did notmaintainacontingencyfundinitsfirstfullfiscalyear.

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CityandFiscalYearBudget Dept.Budget PerCapitaJohnsCreekFY09 $833,692 $10.87JohnsCreekFY10 $800,863 $10.44DunwoodyFY09 $0 $0DunwoodyFY10 $250,000 $5.40AveragePerCapitaExpenditure 6.68StudyAreaExpenditureEstimate $328,576

AnnualCapitalforRoadsandDrainageandParkAcquisition

These costs represent the ongoing capital costs associated withmaintaining roads andaccompanying drainage; i.e., land, equipment, as well as repairs and alterations to fixedworks.Todetermine this figure, capitalexpenditures for roadsanddrainage reported tothe Georgia Department of Community Affairs by 19 cities ranging in population from31,000to92,000for2007,2008,and2009wereaveragedpercapita.Thesenumberswerethen adjusted for inflation to 2010 dollar values, and the per capita average of thosenumberswasthenappliedagainstthestudyareaspopulation.SeeAppendixI.Thisfigureexcludescosts forcapitalassociatedwithservices thatwill continue tobemaintainedbyDeKalb County government like libraries and fire stations, as well as capital costsassociatedwithcityfunctionsassumedtobecoveredthroughoperationalcostsbyvirtueofcontractingwith the private sector. Capital needs for police serviceswere also excludedfromthisnumberastheyareaccountedforseparatelyaspolicecapital.

Tothefigureforannualcapitalwasaddedthecostforanewlyincorporatedcitytoacquirethe parks fromDeKalb County as determined by the number of acres and the statutoryformula set forth in O.C.G.A. 363111.1, which is $24,950. This statutewas passed toresolve an impasse between Dunwoody and DeKalb County, over the costs of parkacquisition,andbyvirtueofitswordingwouldapplyifthestudyareawereincorporated.Eventhoughthisamountrepresentsonlyaonetimeexpense,itwasaddedtothelineforannualcapitalcostsbecauseannualcapitalcostsforparksarenotincludedelsewhere.16

16DCAdatadoesnotsegregatelandacquisitioncostsfromotherparksrelatedcapitalcosts,consequentlyonlythestatutorilyderivedparksacquisitioncostfigurewasused.

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PoliceCapitalandGeneralStartUp

Thesecostsrepresentthoseassociatedwithequippingacitypolicedepartmentaswellassome general nonpolice specific citywide startup costs. Most of these represent costsassociatedwithbeginningtheoperationofapolicedepartmentduetothelargeamountofequipmentandvehiclesneededtoprovidepoliceservices.Forpurposesofcalculatingthisfigure,itwasassumed,basedontherecentexperiencesofJohnsCreekandDunwoody,thatleasepurchaseagreementswouldbeusedtoacquiretheneededvehiclesandequipmentpursuant toa fiveyear leaseatan interest rateof2.5%. Toarriveat these costs, itwasassumedthattherewouldbe53policeofficersinastudyareacitydepartment,basedontheaveragenumberofpoliceofficerspercapitacurrentlyemployedinthecitiesof JohnsCreek,Dunwoody,andSmyrna,oneofficerforevery929people.

ComparisonofResidentPopulationtoNumberofPoliceOfficers JohnsCreek Dunwoody Smyrna StudyArea2010Population 76728 46267 51271 49188No.ofPoliceOfficers 63 46 91 ResidentsperOfficer 1218 1006 563

The total costs of equipping each Dunwoody officerwith a vehicle, computer, furniture,radio, firearmandotherbasicequipmentwasdeterminedpercapitaandappliedagainstthenumberofofficersassumedforthestudyareatoarriveatatotalofficerpolicecapitalcostestimate.

Averagenumberofresidentsperofficer 929No.ofofficersassumedforstudyarea 53

CityandFiscalYearBudget Budget CostPerOfficerDunwoodyFY09PoliceStartup $2,674,000 $58,130NumberofOfficersAssumedforstudyarea53x$58,130perofficerStudyAreaExpenditureEstimate $3,077,847

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Inadditiontocapitalexpenditures forpolice,anewcitywould likely incursomegeneralstartup costs. Dunwoodys startup costs included expenditures for furniture andsoftware. Because Johns Creek startup costs were subsumed in their private vendercontract,while Dunwoody chose to purchase startup equipment for its sole ownership,onlyDunwoodyfigureswereusedtodeterminegeneralstartupcosts.

CityandFiscalYearBudget Budget PerCapitaDunwoodyFY09NonpoliceStartup $778,000 16.82StudyAreaExpenditureEstimate $827,342Police capital costs andgeneral startup costs figuredper capita for the studyareawereaddedtogetherandassumedtobefinancedoverafiveyeartermonsimilartermstothoseusedbyDunwoodytofinancethesesameexpenses.

PoliceCapitalStartUpEstimate $3,077,847GeneralStartUpCostEstimate $827,342TotalStartupCostEstimate $3,905,189Amortizedover5yearsat2.5%interest $831,682

Appendix A

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AppendixBTownBrookhavenDevelopment

Town Brookhaven is a mixeduse project located on a 54acre site on PeachtreeRoadjustsouthofOglethorpeUniversity.Theoriginalmasterplanfortheprojectincludeda retail center, three residential buildings, restaurants, and signature specialty shops.Currently,TownBrookhavenincludesascommercialtenantsCostco,Publix,Marshalls,andLA Fitness, among others. Although originally planned as condos, the completedresidentialbuildingsincludeapartmentsthatareavailableforlease.

In 2008 the Development Authority of DeKalb County approved a tenyeargraduated tax abatement for the project. The approved tax abatement requires thedeveloper, through its subsidiary, topayan increasingpercentageofproperty taxes thatwould be owed on the project for each year over a tenyear period. In year eleven, thecompanywill pay100%of the taxes assessedon theproperty subject to the abatement.The increasing percentages payable by the developer are set forth in payment in lieu oftaxes (PILOT) agreements also approved in connectionwith the abatement. The specificpercentages payable by the developer are discussed in more detail below. The taxabatementstructureapprovedforthedeveloperisconsistentwiththethenexistingpolicyof the Development Authority and with other development authorities in Georgia. Inadditiontothetaxabatement,thelanduseandzoningdesignationsrequiredtosupporttheoriginal master plan for the project were approved by the DeKalb County Board ofCommissioners.

BackgroundofTaxAbatementTransactionsProperty tax abatements are typically provided in Georgia using a bondlease

transaction. Under the transactions structure, title to the property subject to the taxabatement is transferred to a development authority that is exempt from taxation. Thepropertyisthenleasedtoaprivatecompany.Typicaltaxabatementslastbetweenfiveand15years,withtenyearsbeingmostcommon.Inmanylocalities,theleaseholdinterestheldbytheprivatecompanyissubjecttotaxation,oftenaccordingtoanincreasingpercentageformula. Thereisnostatutoryguidanceonhowsuchleaseholdinterestshouldbevalued

34

for ad valorem tax purposes; however, the Georgia Supreme Court has held that eachcountymaydeterminethefairmarketvalueoftheleaseonareasonablebasis.Typically,the terms of the lease and the methodology for valuation of the leasehold interest arenegotiated up front with the county tax assessor, and a PILOT agreement is executedsetting forth the valuation methodology and the amounts, including any increasingpercentages,thatthecompanywilloweduringthetermofthetaxabatementtransaction.

Thedevelopmentauthority issuesbonds toacquire thepropertythat issubject tothe abatement, and the bonds are secured by the lease payments from the privatecompany. While actual financing can be the purpose of the bonds, generally the solepurpose of the bondlease transaction is the tax abatement. In such cases, the privatecompanybuysthebonds,andthusthecompanyisboththeobligoronthebondsthroughthe leasepaymentsandtheholderof thebonds. Inmostbondlease transactions for taxabatementpurposes,thedocumentationprovidesthatthepaymentsundertheleasecanbepapertransactionsinlieuofanactualtransferoffunds.

TownBrookhavenTaxAbatementStructureInOctober2008theDevelopmentAuthorityapprovedthetaxabatementforTown

Brookhavenutilizingthebondleasetransactiondescribedabove.17AsrequiredbyGeorgialaw,theproposedbondswerevalidatedintheSuperiorCourtofDeKalbCountypursuantto an Order and Final Judgment entered on December29, 2008. Under the structureapprovedandvalidated,theDevelopmentAuthoritywillissuedrawdownbondstoacquirethe project from the developer as the project is developed.18 The project is then leasedfromtheDevelopmentAuthoritytothedeveloperthroughaleaseagreement.Thepaymentofthebondsissecuredbythepaymentsmadebythedeveloperpursuanttothelease.

The Town Brookhaven structure provides that the developer Sembler BellBrookhaven,LLCwillpurchase thebonds thatare issued,makingthedeveloperboth the17 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.

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bondholderandtheobligoronthebonds.Thedevelopersstructureisconsistentwiththetypical bondlease tax abatement transaction in that no true, or actual, financing isinvolved;thesolepurposeofthebondissueistoprovidethetaxabatementbytransferringownershipoftheprojecttotheDevelopmentAuthorityfortheperiodofthetaxabatement.The lease agreements include the option on the part of the developer to terminate theleasesatanytime,atwhichpointtheprojectsownershipwouldbetransferredbacktothecompany. The termination option is consistent with typical tax abatement bondleasestructures.

TownBrookhavenPILOTAgreementsIntypicaltaxabatementbondleasetransactions,thepaymentstobemadeinlieuof

taxes(oftenstatedaspercentagesoftaxesotherwisepayable)areusuallysetforthinoneormorePILOTagreementswhichareusuallynegotiatedupfrontamongtheDevelopmentAuthority, the private developer, the county board of tax assessors and the county taxcommissioner. APILOTagreementcanbea separateagreementor includedas separateprovisionsinoneoftheotherbonddocuments,suchastheleaseagreement.IntheTownBrookhavenstructure,thePILOTagreements19arepartoftheleaseagreementandrequirethat the developer file, not later than March1, 2009 and then April1 of each yearthereafter,withtheDevelopmentAuthority,theDeKalbCountyBoardofAssessorsandtheDeKalbCountyTaxCommissionerproformapropertytaxreturnscontainingdetailedlistsof the itemsof property comprising theproject that is subject to the tax abatement andshowingthecostanddateofpurchaseofeachitem.

TheamountsthatarepayableunderthedeveloperPILOTagreementsarecalculatedaspercentagesofnormaltaxesthatwouldhavebeenowedbasedonthevalueoftheitemsofpropertydescribedinthereturns. Theapplicablepercentagesofnormaltaxesusedtocalculate the developers payments under the PILOT agreement are set forth in thefollowingschedule:

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.

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TaxYear PaymentPercentages1 5.0%2 14.5%3 24.0%4 33.5%5 43.0%6 52.5%7 62.0%8 71.5%9 81.0%10 90.5%

11andthereafter 100.0%

UnderthePILOTagreements,atthetimethattaxbillsaresenttopropertyownersin the county, the Tax Commissionerwill send to the developer a bill or invoice for thepayments due. If the developer fails to make the payments required under the PILOTagreements,theTaxCommissionercanassesspenaltiesandinterestinamountsthatwouldbe assessed if the payments to bemade under the PILOT agreements were ad valoremtaxes.

Sincetheprojectwasnot located inacityat thetimethePILOTagreementswereexecutedandnocity isparty to them, it seems likely thatnonewmunicipalitywouldbebound to them. Thus, should a city be created that includes the Town Brookhavendevelopment, therewould likelyneed tobesomedeterminationofwhether thenewcitywantedtoenterintoaPILOTagreementwiththedeveloper.

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AppendixC

MiscellaneousRevenues

The following table provides greater detail for the revenue sources whichindividuallytotallessthan$10,000.

RevenueSource

Methodology StudyAreaEstimate

DataSource

UtilityTaxesRatioofassessedvalueofutilitypropertyinstudyareatounincorporatedarea 1,313

DeKalbRevenueReportbyFundyearthroughDecember2010(Unincorporated)

HeavyEquipmentTaxes

RatioofassessedvalueofindustrialpropertyinstudyareatoDeKalbunincorporatedarea 3

DeKalbRevenueReportbyFundyearthroughDecember2010(Unincorporated)

FingerprintingFees

RatioofpopulationinstudyareatoDeKalbunincorporatedarea 1,486

DeKalbRevenueReportbyFundyearthroughDecember2010(unincorporated)

CopyingFeesRatioofpopulationinstudyareatoentireCounty 6,386

DeKalbRevenueReportbyFundyearthroughDecember2010(generalfund)

MotorVehiclesPenalties

Ratioofpenaltiespaidforpropertytaxestopropertytaxespaidinstudyareatimestotalmotorvehiclestaxes 1,510 DeKalbTaxCommissioner

QualifyingFees3%ofgrossannualsalary/electedofficial 3,045

PursuanttoO.C.G.A.212131

InvestmentIncome

RatioofPopulationinstudyareatounincorporatedarea 0

DeKalbRevenueReportbyFundyearthroughDecember2010(unincorporated)

TotalMiscellaneous $13,743

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UtilityTaxes

Propertyownedbypublicutilitiesisassessedbythestateandalocalmillagerateisappliedtothatassessment.Theratiooftheassessedvalueofutilityownedpropertyinthestudyarea totheunincorporatedareawasappliedagainst theassessedvalue forutilityownedpropertyintheunincorporatedarea.

HeavyEquipmentTaxes

Taxesareassessedoncertainheavyequipmenttypicallyusedinindustrialenvironments.Anassumptionwasmadethattheassessedvalueofindustrialpropertyservesasaproxyfor thepresenceof suchequipment.Theratioofassessedvalueof industrialproperty tothe assessed value of industrial property in the unincorporated areawas applied to therevenuegeneratedfromheavyequipmenttaxesintheunincorporatedarea.

FingerprintingFees

This figurerepresentsrevenuederived fromfeescharged formaking fingerprint sets forlicenseapplicants to those requesting themforprofessional licenseapplicationsorotherreasons.Theratioofpopulationofthestudyareatotheunincorporatedareawasusedtodeterminethisamount.

CopyingFees

Governments are allowed to charge small fees per page for copies of documents. Itwasassumedthataproportionateamountofrequestswouldbemadeofacitycomprisedofthestudyarea.Here,theavailabledataforcopyingfeesrepresentedfeescollectedonacountywidebasis,sotheratioofpopulationofthestudyareatotheentirecountypopulationwasused.

MotorVehiclesPenalties

Thisfigurewasobtainedbyapplyingtheratioofpenaltiespaidforrealpropertytaxestorealproperty taxespaid in thestudyarea times theanticipatedamountofmotorvehicle

39

taxes. An assumption was made that the ratio of taxpayers that incurred penalties forfailuretotimelypayrealpropertytaxeswouldbethesameformotorvehicletaxes.

QualifyingFees

Statelaw,O.C.G.A.212131providesthatmunicipalitiescollectqualifyingfeesforthoseseeking elected office at a rate of 3% of gross annual salary for the elected office beingsought. C4ND asked for an assumption to bemade that this figure be calculated for onemayorandsixcouncilmembers.Thus,thisfigurewasobtainedbyaveragingthesalariesofthe elected officials in Dunwoody and Johns Creek (each of which have six councilmembersandonemayor)andthenmultiplyingthataveragedamountbythreepercent.

InvestmentIncome

Normally local governments are able to derive some revenue from interest obtained oninvestmentsof fundstypicallymadefor limitedperiodsof time.Astherewasnorevenuefromsuch investments in the2010actual revenuedata fromDeKalbCounty,wedidnotestimateafigure.

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AppendixD

2010UnincorporatedCountyRevenueFiguresandDataSources

RevenueSource UnincorporatedCountyRevenueFigure

DataSource

OccupationTaxes9,121,175 DeKalbRevenueReportby

FundyearthroughDecember2010

BeverageExciseTaxes4,008,514 DeKalbRevenueReportby

FundyearthroughDecember2010

PersonalPropertyTaxes3,480,395 DeKalbRevenueReportby

FundyearthroughDecember2010

Hotel/MotelTax/Hotel/MotelTax(restricted)

4,266,646DeKalb2011BudgetBook

BusinessLicensePolice1,744,315 DeKalbRevenueReportby

FundyearthroughDecember2010

BusinessLicenseBeverages1,284,012 DeKalbRevenueReportby

FundyearthroughDecember2010

BankSharesTax525,019 DeKalbRevenueReportby

FundyearthroughDecember2010

Intangible406,328 DeKalbRevenueReportby

FundyearthroughDecember2010

DevelopmentFund3,724,164 DeKalb2011BudgetBook

RevenuefromPermitFeesZoningandVarianceFeesandPermits

72,612 DeKalbRevenueReportbyFundyearthroughDecember2010

InsurancePremiums25,767,747 DeKalbRevenueReportby

FundyearthroughDecember2010

Fines&Forfeitures22,444,722 DeKalbRevenueReportby

FundyearthroughDecember2010

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StormWaterFund 16,657,859 DeKalb2011BudgetBook

MotorVehicles3,969,106 DeKalbRevenueReportby

FundyearthroughDecember2010

LawEnforcementConfiscatedMoniesFund

2,757,821DeKalb2011BudgetBook

ParkingandRental323,819 DeKalbRevenueReportby

FundyearthroughDecember2010

SaleofPrintedMaterialPolice

312,907 DeKalbRevenueReportbyFundyearthroughDecember2010

FranchiseFeesCable 5,756,180 DeKalbRevenueReportbyFundyearthroughDecember2010

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AppendixE

HotelsintheStudyArea

1 HiltonGardenInnAtlantaPerimeterCenter 1501LakeHearnDrive,Atlanta,GA30319 2 WingatebyWyndham

2920ClairmontRoad,Atlanta,GA303293 MicrotelInnandSuitesAtlanta/BuckheadArea

1840CorporateBoulevard,Atlanta,GA30329 4 RedRoofInn 1960N.DruidHillsRoad,Atlanta,GA30329 5 HamptonInnDruidHills 1975NorthDruidHillsRoad,Atlanta,GA30329 6 DoubletreeHotelAtlantaNorthDruidHillsEmoryArea 2061NorthDruidHillsRoad,Atlanta,GA30329 7 ResidenceInnAtlantaBuckhead/LenoxPark 2220LakeBoulevard,Atlanta,GA30319 8 ExtendedStayDeluxeAtlantaLenox 3967PeachtreeRoad,Atlanta,GA30319 9 HolidayInnFullServices 4386ChambleeDunwoodyRoad,Atlanta,GA30341

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AppendixF

HOSTCalculationsandCountyCertificationLetter

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 municipalitiescalculation 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 shareaccordance 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) belowcertified by county asrequired 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 pursuantuse tax collected in the to subparagraph (d)(2)(B) of this Code section;special district pursuant Amount from county certification letter: $0.00to this article for the (C) The remaining amount equals the portion of the capital outlay proceeds that may be usedprevious 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 amountportion of the county tax by dividing the net homestead digest for each qualified municipality by the total homesteaddigest 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 usingfigures above = [(1-0.150)($50 (4) In the event the incorporated county millage rate for a qualified municipality is greater than million/$100 million)] the unincorporated county millage rate, no payment shall be due from the governing authorityNext, calculate the 15.0 mills of the qualified municipality to the governing authority of the county.equalization amount inaccordance with paragraph (1) of this subsection as follows: (5) In the event the amount of capital outlay proceeds exceeds the sum of the equalization (E) Unincorporated county 15.0 mills 15.00 19.40 mills amounts due all qualified municipalities plus the total amount certified under subparagraph (d)(2)(B)millage rate of this Code section as due all existing municipalities, the commissioner shall distribute to each (F)Minus the incorporated Difference: (10.0 mills) (10.00) (13.91) mills qualified municipality a portion of such excess equal to the net homestead digest for such county millage rate for municipality divided by the total homestead digest.qualified municipality "Y" Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left -$ 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 millsmillage: 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 RevenueLocal Government Services Division

Data compiled by: J.Ussery1 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 municipalitiescalculation 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 shareaccordance 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) belowcertified by county asrequired 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 pursuantuse tax collected in the to subparagraph (d)(2)(B) of this Code section;special district pursuant Amount from county certification letter: $0.00to this article for the (C) The remaining amount equals the portion of the capital outlay proceeds that may be usedprevious 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 amountportion of the county tax by dividing the net homestead digest for each qualified municipality by the total homesteaddigest 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 usingfigures above = [(1-0.150)($50 (4) In the event the incorporated county millage rate for a qualified municipality is greater than million/$100 million)] the unincorporated county millage rate, no payment shall be due from the governing authorityNext, calculate the 15.0 mills of the qualified municipality to the governing authority of the county.equalization amount inaccordance with paragraph (1) of this subsection as follows: (5) In the event the amount of capital outlay proceeds exceeds the sum of the equalization (E) Unincorporated county 15.0 mills 15.00 19.40 mills amounts due all qualified municipalities plus the total amount certified under subparagraph (d)(2)(B)millage rate of this Code section as due all existing municipalities, the commissioner shall distribute to each (F)Minus the incorporated Difference: (10.0 mills) (10.00) (13.01) mills qualified municipality a portion of such excess equal to the net homestead digest for such county millage rate for municipality divided by the total homestead digest.qualified municipality "Y" Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left 18,241,559.40$ 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 millsmillage: 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 RevenueLocal Government Services Division

Data compiled by: J.Ussery1 of 1

Scenario 2

45

46

47

48

49

50

AppendixGCDBGDataTables

DataSourceGeorgiaDepartmentofCommunityAffairsCDBGAwards

PopulationfiguresreflectU.S.CensusBureauAnnualEstimates

2005 City Pop Total Per

capitaInflationAdjustment

Kennesaw 30303 6869 0.226677 Milton x x 0 Newnan 31587 0 0 Dalton 31841 46925 1.473729 Hinesville 29651 24036 0.81063 EastPoint 42194 87607 2.07629 Gainesville 31953 0 0 P'treeCity 33871 0 0 Rome 35890 277568 7.733853 Dunwoody x x 0 Smyrna 47499 275483 5.799764 Valdosta 48230 3250 0.067385 Marietta 62705 208131 3.319209 Alpharetta 49353 0 0 WarnerRobins 57665 464983 8.063522 JohnsCreek x x 0 Roswell 85921 271079 3.15498 Macon 93696 2132208 22.75666 SandySprings x x 0 Average 3.698847 3.98

51

2006 City Pop Total Per

capitaInflationAdjustment

Kennesaw 31027 17130 0.5521 Milton x x 0 Newnan 26820 0 0 Dalton 32403 312600 9.647255 Hinesville 30094 342066 11.36658 EastPoint 42994 87607 2.037656 Gainesville 33018 0 0 P'treeCity 34248 0 0 Rome 36082 484014 13.41428 Dunwoody x x 0 Smyrna 48706 275483 5.656038 Valdosta 48691 3250 0.066747 Marietta 64071 208131 3.248443 Alpharetta 49663 0 0 WarnerRobins 58604 6442585 109.9342 JohnsCreek x x 0 Roswell 86533 271079 3.132666 Macon 93746 2132208 22.74452 SandySprings 85209 0 0 Average 11.36253 11.93

52

2007City Pop Total Per

capitaInflationAdjustment

Kennesaw 31600 73772 2.334557 Milton 15204 0 0 Newnan 28737 0 0 Dalton 33018 401573 12.16224 Hinesville 30010 313911 10.46021 EastPoint 43312 293788 6.783062 Gainesville 34136 0 0 P'treeCity 34343 0 0 Rome 35810 0 0 Dunwoody x x 0 Smyrna 49476 129188 2.611125 Valdosta 48607 3250 0.066863 Marietta 65217 245285 3.761059 Alpharetta 49435 175000 3.540002 WarnerRobins 59729 662162 11.08611 JohnsCreek 59469 0 0 Roswell 87156 295933 3.39544 Macon 93133 1571540 16.87415 SandySprings 83032 0 0 Average 4.059712 4.13

53

2008City Pop Total Per

capitaInflationadjustment

Kennesaw 32689 134556 4.116247 Milton 15319 0 0 Newnan 30455 0 0 Dalton 33432 273200 8.171811 Hinesville 29752 941144 31.63297 EastPoint 43416 0 0 Gainesville 35476 893716 25.19213 P'treeCity 34658 0 0 Rome 35943 0 0 Dunwoody x x 0 Smyrna 50100 325723 6.501457 Valdosta 51598 0 0 Marietta 66068 162685 2.462387 Alpharetta 49838 0 0 WarnerRobins 60903 612724 10.06065 JohnsCreek 59522 0 0 Roswell 87566 619813 7.078238 Macon 92562 0 0 SandySprings 82832 0 0 Average 5.289772 5.21

54

2009City Pop Total Per

capitaInflationAdjustment

Kennesaw 33043 126967 3.842478 Milton 16206 0 0 Newnan 31587 0 0 Dalton 33604 560721 16.68614 Hinesville 30704 552306 17.98808 EastPoint 43441 0 0 Gainesville 35750 207692 5.809566 P'treeCity 34784 0 0 Rome 36031 3900 0.10824 Dunwoody x 0 0 Smyrna 50712 670401 13.21977 Valdosta 52169 0 0 Marietta 66953 172303 2.573492 Alpharetta 51569 0 0 WarnerRobins 62026 532237 8.580869 JohnsCreek 61794 0 0 Roswell 87719 1312718 14.96504 Macon 92582 0 0 SandySprings 85625 0 0 Average 4.654093 4.71

29.96 TotalInflationAdjustedto2010Values5.99 5yearaverage49188 Studyareapop294,636

Total

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AppendixH

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:

Gymnasium 5205 sq. ft. Multi-purpose room 1200 sq. ft. classroom 525 sq. ft.(estimate) office 90 sq. ft. (est.) mechanical room 60 sq. ft. (est.) hallway 32 sq. ft. (est.) snack area 464 sq. ft (est.) kitchen 70 sq. ft. (est.) x-room 44 sq. ft. (est.) restrooms each @ 296 sq. ft. (est.)

Lynwood Recreation Center History

Lynwood Recreation Center originated from the Lynwood Park School. The school was built in the early 40s for the African-American community

students in grades 1-12 When integration took place in the mid-60s the school closed. 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?

It costs the County approximately $113,000 annually to operate the Lynwood and Briarwood Recreation Centers.

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